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Wipro chases a $2b quarter as margins squeeze tighter
20 Jul 2017
US driving growth at NIIT Tech
20 Jul 2017
Tego becomes Zego as gets £1.2m funding delivery
20 Jul 2017
Civica buys into HR and payroll with Carval Computing
20 Jul 2017
Cloud drives SAP Q2 revenue up, profits down
20 Jul 2017
*NEW RESEARCH* Lemongrass migrates FrieslandCampina’s SAP to AWS
20 Jul 2017
LBB Contego secures £3.5m funding
20 Jul 2017
More margin squeeze at Mindtree
20 Jul 2017
Mastek: so far, so good
20 Jul 2017
IBM means business in Blockchain
19 Jul 2017
**NEW RESEARCH** DXC Technology: Revenue analysis and leadership Q&A
19 Jul 2017
IBM Q2: Recurring themes
19 Jul 2017
Learnably raises £1.6m for its LMS for SMEs
19 Jul 2017
Privitar goes public on $16m funding round
19 Jul 2017
Castleton revenue up 12%
18 Jul 2017
NCC Group: battered but not broken
18 Jul 2017
Atos Worldline extends geographical reach with DRWP
18 Jul 2017
EMIS on track despite NHS funding challenges
18 Jul 2017
Confident Ideagen: organic growth alongside buy-and-build strategy
18 Jul 2017
Reach reaches $7.5m for AR robo-crab
18 Jul 2017
Imperial sides with IP Group over Touchstone
18 Jul 2017
Tech Leaders Summit 14 September 2017
18 Jul 2017
**New Research** – The State of UK and European Fintech
17 Jul 2017
StatPro update shows continued progress
17 Jul 2017
Proxama adding data points
17 Jul 2017
Parity progresses rebalancing of business
17 Jul 2017
Did Wimbledon 2017 satisfy your stats fetish?
17 Jul 2017
**NEW RESEARCH** Brexit Survey 2017: The Results
17 Jul 2017
Atos targets hybrid cloud expansion with Azure Stack
17 Jul 2017
Touchstone augments WaveOptics funding
17 Jul 2017
On business dress codes
15 Jul 2017
*New Research* Taylor review: raft of potential tech opportunities
14 Jul 2017
New backers plan cyber buy-and-build for The Bunker
14 Jul 2017
Redstor: Reinventing for scale?
14 Jul 2017
Cognizant brings digital workshop to London
14 Jul 2017
Quill pens further funding
14 Jul 2017
'Making Tax Digital' delayed
14 Jul 2017
Cisco buys Observable Networks for security monitoring
14 Jul 2017
UK Public Sector still tough for recruiter Hays
14 Jul 2017
Show time for Infosys
14 Jul 2017

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Thursday 20 July 2017

Wipro chases a $2b quarter as margins squeeze tighter

logoIt was a better quarter than management expected from a growth perspective at freshly rebranded offshore services major, Wipro (see Wipro to ‘be the new’ with new branding), with headline revenues in Q1 FY18 (to 30th June) increasing by 2% yoy to $1.97b, just under 1% higher than the prior quarter. However growth still trailed archrivals’ TCS and Infosys but that’s just how things are. Wipro’s operating margin also suffered again, losing 150bps qoq to 16.8%, a point down yoy and its lowest level on record. However, with a fair wind behind it, management can see Wipro breaching the $2b barrier for the first time this quarter.

But while the truth is always in the numbers, the underlying stories are in fact much more encouraging. For example, about a month ago I met up with Wipro’s new head of consulting, Phil Dunmore (see Dunmore consolidates Wipro Consulting) and was impressed with the progress he is making at bringing together the disparate parts of Wipro’s consulting ecosystem into a more integrated proposition.

And very recently, we met up with Wipro Senior Vice President & Global Head: Healthcare, Life Science and Services, Jeff Heenan-Jalil, who took us through the truly exciting developments (including in the UK!) in this fast-growing $1.2b business unit. We will have much more on this at a later date.

Posted by Anthony Miller at '18:00' - Tagged: results   offshore  

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Thursday 20 July 2017

US driving growth at NIIT Tech

logoManagement at Noida-based mid-tier offshore services firm, NIIT Technologies, kept its foot on the accelerator last quarter, though at the cost of profitability.

Headline revenues in Q1 FY18 (to 30th June) grew by nearly 9% yoy to $100m, just over 3% higher than the prior quarter. US revenues grew by 4.3% qoq in constant currency terms, and now represent 49% of total revenues. However, operating margins were squeezed a couple of points lower than the prior quarter, to 11.2%, though still almost a point up yoy.

It was an eventful quarter for NIIT Tech, what with the acquisition of a 55% stake in Idaho-based BPM (business process management) consultancy, RuleTek. Terms were not disclosed, other than to say that RuleTek had revenues of $6.5m last year. The acquisition was effected through Incessant Technologies, a Hyderabad-based BPM consultancy in which NIIT Tech took a 51% stake for a mooted $17m in May 2015 (see NIIT Tech edges forward and acquires). Incessant had revenues estimated at $17m at the time.

A couple of days prior to acquiring control of RuleTek, NIIT announced the appointment of Genpact executive (and prior, Infosys exec) Sudhir Singh as CEO designate.

NIIT Tech does not appear to be suffering as much as rather larger mid-tier peer, Mindtree (see More margin squeeze at Mindtree), which derives two-thirds of its revenues from the US. The two players have quite different profiles in terms of vertical mix and service line propositions, so on  the face of it NIIT Tech appears to be finding sweeter spots than Mindtree.

Posted by Anthony Miller at '17:20' - Tagged: results   offshore   acquisition  

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Thursday 20 July 2017

Tego becomes Zego as gets £1.2m funding delivery

logoThis is an interesting – and to my mind – differentiated variation on the pay-as-you-go (PAYG) insurance theme.

Launched by Deliveroo drivers in April 2016 as Tego, and now known as Zego (I assume to avoid confusion with a company of that name in the US, though the logo still looks 'T-ish'), the London-based startup offers PAYG insurance specifically for ‘gig economy’ delivery drivers.

Zego has just revealed a £1.2m seed funding round led by LocalGlobe, though it appears the investment was actually made in December 2016. Zego had previously raised angel funding last September.

Zego initially offered add-on ‘third-party only’ cover for food delivery scooter riders for (the driver had to have ‘everyday’ scooter insurance to qualify); this has since been expanded to include scooter courier delivery. It seems the founders chose to reveal the December funding round now to coincide with a limited launch of fully-comprehensive PAYG car delivery insurance cover, underwritten by Aviva.

By focusing on the on-demand delivery market, Zego’s proposition is different to that of PAYG insuretech startups such as By Miles and Cuvva. You can see the possibilities of Zego offering related insurance products – and indeed other financial services products – tailored to this specific (and fast growing) market segment.

On this basis, Zego looks like it may have legs – or should I say, wheels.

Posted by Anthony Miller at '09:51' - Tagged: funding   startup   insuretech  

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Thursday 20 July 2017

Civica buys into HR and payroll with Carval Computing

Civica logoIt continues to be ‘business as usual’ at Civica, which today announced another acquisition that further broadens its portfolio of business-critical applications. Civica UK has acquired Carval Computing, which provides integrated HR and payroll systems and related payroll processing services. Today’s acquisition, which is typical of the M&A strategy that Civica has always followed, comes despite rumours earlier in the year that Civica itself was to be put up for sale by Canadian backers OMERS Private Equity (see Civica to be put up for sale?).

Based in Plymouth and Newport Pagnell, Carval is a small bolt-on acquisition for Civica (which turned over nearly £270m in FY16). Carval is too small to file full accounts with Companies House and the terms of the acquisition have not been made public. It may be a small SME, but Carval’s HR systems – which include cloud-based solutions, employee self-service technology and mobile apps - are used at more than 300 sites by customers in both the public and private sectors. Clients include Middlesbrough Council, Staffordshire Housing Association, multi-academy trust E-ACT, the Royal Mint and National Express. It’s not difficult to see the appeal for Civica as Carval brings a complementary capability that fills a gap in its product portfolio and also a fresh set of customers with cross-sale potential.

As an aside, we detect a subtle change in the messaging from Civica. It seems to us that there is more emphasis on its global capabilities – it now operates in 10 countries - and less emphasis, at least in today’s press release, on its UK public sector roots. With additions like Carval, Civica is gradually increasing the work it does in the private sector but the public sector still accounted for some 95% of UK revenue last fiscal year (see also UK Public Sector SITS Supplier Landscape Report 2016/17 if you’re a PublicSectorViews subscriber).

Posted by Tola Sargeant at '09:50' - Tagged: acquisition   software   hr   payroll  

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Thursday 20 July 2017

Cloud drives SAP Q2 revenue up, profits down

LogoSAP demonstrated the ups and downs of the cloud shift again in Q217 (to June 30 2017) as revenue rose a strong 10% but operating profits plummeted 27% on the back of a rapid rise in cloud subscriptions. Cloud investment is still high on the agenda, so the cloud subscription gross margin dropped 2.2 percentage points to 62.4%.

Revenue hit €5.8bn while operating profit fell to €926m from €1.2bn. It was facing a tough year ago comparative however. In confident mood, the company raised full year total revenue outlook slightly because of rapid cloud growth but went to town on cloud guidance. If cloud revenue reaches the upper end of guidance of €3.8bn to €4.0bn (constant currency), that would represent a 34% increase.

In Q2 cloud revenue rose 29% to €932m and included €340m of new cloud bookings, representing a 33% uplift. At 16% of total revenue, cloud is still a small part of the overall business but the proportion is steadily increasing, building on a broad portfolio that stretches from S/4HANA and HCM software to the new Leonardo machine learning/AI/IoT platform and the Business Network, which still appears to be underplayed. What is reassuring is that SAP’s cloud portfolio is attracting new business.

Its traditional business is also making headway with a comforting 5% increase in software licence revenue to €1.09bn and the same percentage increase in support revenue. Much of the licence increase will be down to S/4HANA adoption as customer numbers were up 70% yoy to 6300. 500 signed up during Q2, of which 30% were new to SAP and included Google, Centrica and Mercadona. However, this time last year, the quarterly sign up tally was also 500, of which 40% were net new.

There are always questions over the speed of the cloud transition but Q2 demonstrates SAP is making steady progress as it balances the need to change against business stability. Alongside cloud progress, the ability to attract new customers against the sustained onslaught of the cloud pure plays is one of the most reassuring outcomes of the period. Looking forward, Leonardo’s progress (and positioning) will be important as SAP looks to establish its credentials in the ‘intelligence’ field. 

Posted by Angela Eager at '09:49' - Tagged: results   cloud   software  

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Thursday 20 July 2017

*NEW RESEARCH* Lemongrass migrates FrieslandCampina’s SAP to AWS

lemongrassWe’ve been closely following Lemongrass for a couple of years now, tracking its progress as an SAP specialist that has developed a focus around migrating applications to Amazon Web Services (AWS).

Truly living up to its status as a Little British Battler, Lemongrass beat several of the Global System Integrators (GSIs) to win the contract to migrate FrieslandCampina’s SAP estate to AWS. Lemongrass has built something of a reputation as a ‘giant layer’, having ousted various large players in enterprise accounts, taking those customers from traditional hosting to the public cloud (see: Has Lemongrass landed Europe’s largest AWS/SAP implementation?).

In this research note we examine how FrieslandCampina’s move to Amazon Web Services has highlighted the benefits of working with smaller specialist suppliers – not least Lemongrass.

Subscribers to our Foundation Service and InfrastructureViews can read the note here: FrieslandCampina: Dairy firm takes giant step to AWS.

To become a subscriber, please contact Deb Seth.

Posted by Kate Hanaghan at '09:44' - Tagged: cloud   AWS   migration  

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Thursday 20 July 2017

LBB Contego secures £3.5m funding

Contego Fraud Solutions logoIn recent FinancialServicesViews research, we highlighted RegTech – the application of technology to help meet regulatory requirements – as a big opportunity area (see RegTech – A big new opportunity). It’s a space in which Abingdon-based, Little British Battler (LBB), Contego Fraud Solutions, has found its sweet spot. We’ve watched as the supplier of automated compliance systems has made moves to grow both organically and via acquisition over the last year. Highlights have included its participation in Accenture’s FinTech Innovation Lab, the adoption of the company’s system by Modulr to simplify the payments process for its corporate customers, and the acquisition of Working Status, which launched it into the Right-to-Work compliance space.  

The company’s growth ambitions mean it continues to be on the look-out for additional acquisitions to add platform functionality and broaden its customer reach. That will be made easier now that it has secured £3.5m in funding in a round jointly led by Maven Capital Partners and NVM Private Equity. Contego already performs a wide array of screening, verification and vetting assessments, including Know Your Customer (KYC); Anti Money Laundering (AML); “Right to Work” checks; “Right to Rent” checks and Counter-Party Risk Management. As it adds to its portfolio, Contego will become increasingly attractive as a one-stop shop in this increasingly important, but complex, space.

Posted by Georgina O'Toole at '09:42' - Tagged: funding   financialservices   fraud   RegTech  

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Thursday 20 July 2017

More margin squeeze at Mindtree

logoThe pressure on profitability appears to be piling up at Bangalore-based mid-tier offshore services firm Mindtree, as operating margins continued a downwards path. Headline revenues for Q1 FY18 (to 30th June) kept just on the plus side of steady, at $200m. However, operating profit took a hammering, pushing operating margins down further, to 7.6%.

This is unlikely to be the start to the year that management had hoped for.

Posted by Anthony Miller at '09:07' - Tagged: results   offshore  

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Thursday 20 July 2017

Mastek: so far, so good

logoSome six months in from its transformative acquisition of US-based Oracle Commerce and CX consultancy, Trans American Information Systems (see Mastek does Dallas with TAIS), things seem to be going to plan at Mumbai-based mid-tier offshore services firm, Mastek.

Headline operating revenues for FY18 Q1 (to 30th June) grew by 2.9% qoq to Rs18.55b, representing 5.3% growth in constant currencies. Revenues in Mastek’s UK operations grew by 3.5% to Rs12.27b, just under 70% of the total, belying a 3% decline at IndigoBlue, the UK-based consultancy acquired in May 2015 (see Mastek UK goes ‘agile’ with IndigoBlue). TAIS revenues increased by 2.8%. Mastek’s operating margin improved by nearly 2 points to 10.6%.

This is still early days for Mastek’s ‘rebirth’ as a UK/US focused business and there will be challenges ahead (see OffshoreViews Q1 2017 Review). But broadly speaking, so far, so good!

Posted by Anthony Miller at '08:15' - Tagged: results   offshore  

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Wednesday 19 July 2017

IBM means business in Blockchain

ibmTuesday’s European Blockchain summit in IBM’s research labs near Stuttgart brought together a good blend of customers and potential customers and presented a clear view of the state of play in Blockchain – as well as focusing on the important issues of any Blockchain implementation.

It’s all about the business process and how it can be improved. Customers are not generally interested in the arcane comparison of “speeds, feeds and features” at this stage of the technology’s life cycle, they want to understand how they can improve the level of trust between consortia members, improve the efficiency of their complex transactions and relationships and reduce frictional and system costs. IBM, benefiting from lots of approaches from within its customer base appear to be making the running in several industry areas. They have nine consortia running live systems currently and over 400 projects initiated, helping them to build experience and a portfolio of use cases.

IBM made a key decision to join (and thereby accelerate) the Hyperledger consortium which now has over 140 members and making progress in the sophistication of the Blockchain relationships and in building standard applications to speed system implementation. The “open-source, open-governance” approach, adopted by IBM, aims to avoid potential delays and disappointments caused by a technology or format war as more and more users experiment with this rapidly developing technology. More……

Posted by Peter Roe at '18:27' - Tagged: network   transformation   blockchain  

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Wednesday 19 July 2017

**NEW RESEARCH** DXC Technology: Revenue analysis and leadership Q&A

dxcLaunched in April this year, and created through the merger of CSC and HPE Enterprise Services, DXC Technology (UK) has done well to not decline in revenue terms. Its unchanged FY17 revenue figure of £3.2bn (based on pro-forma estimates for CSC, HPE ES and Xchanging) belies a very varied performance beneath the surface. In Public Sector, DXC saw double-digit declines, but in Financial Services it saw double-digit growth - thanks to the early stages of its contract with Deutsche Bank. Not surprisingly, this dynamic was reflected in the largest of its business segments, Infrastructure Services, which held revenue steady at c£1.8bn. The appointment of industry veteran, Nick Wilson, to the role of UK MD was a good move. While he certainly has his work cut out to get the company back to growth, we suspect the leadership team will be happy with another year during which the company does not decline. However, going forward, DXC will not be able to rely on the large Deutsche Bank contract to counter declining contracts elsewhere, which will put increased pressure on the top line.

This research note takes a look at how the DXC Technology (UK) business now looks from a revenue segmentation perspective, taking account of our brand new estimates for the company. It also includes a Q&A with Nick WIlson, the company's new leader in the UK.

Subscribers to our Foundation Service and InfrastructureViews can read the piece here: DXC Technology: Revenue analysis and leadership Q&A.

Posted by Kate Hanaghan at '09:37' - Tagged: leadership   revenueanalysis  

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Wednesday 19 July 2017

IBM Q2: Recurring themes

ibmIBM reported its Q2 figures overnight, with many of the same recurring themes. Overall revenue was down 3% to $19.3bn, with gross margin impacted by the revenue mix and investments.

In areas IBM calls "strategic imperatives", total revenue increased 7% over last year – hardly a figure to set the world alight given the areas of focus. In particular, security increased 5% and analytics 6%. Given the investment in Watson technologies in particular, IBM leaders must be wondering when they’re going to get their big payback on the money they’ve been pumping in. (Watson plays an important role in IBM’s relationship with Wimbledon – see Did Wimbledon 2017 satisfy your stats fetish?)

Over the last 12 months (as opposed to comparing quarters) the “strategic imperatives” area has faired better, with revenue up 12%; IBM can of course use its massive installed base of legacy technology as a ‘feeding ground’ for ‘new technology’ sales. Total cloud revenue was a stronger growth area at 17% - although not as strong as mobile, which hit 29%.

These are complex and difficult times – and IBM is far from being alone. As one of the world’s best known business technology brands, it will of course receive high profile criticisms of its attempt to evolve. But we speak to suppliers day in and day out who face the same challenges: How fast do you invest your cash in new technologies and services versus how fast is the market actually moving to those? At what speed do you cannibilise your legacy revenue for the good of the business in the longer term? How do you enable your sales people to migrate existing customers to new technologies, in a way that is realistic and fairly easy to execute?

We can’t expect overnight changes, but the problem for IBM is that it is a publically listed company – a challenge others such as Rackspace and Dell now do not have to contend with.

Posted by Kate Hanaghan at '09:24' - Tagged: results   cloud   analytics   AI   cognitive  

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Wednesday 19 July 2017

Learnably raises £1.6m for its LMS for SMEs

logoBack at the turn of the millennium, so-called ‘learning management systems’ (LMS) were seen as the next big thing in employee training and development.

They weren’t.

It’s not that they were a bad idea. It’s more that, particularly after the dot.com crash, few employers appeared to be keen to dish out dosh to even train their staff, let alone buy a software tool to manage the process (see SkillSoft and the shape of things to come).

Perhaps more so now, I think it’s a brave and courageous move to pitch an ‘LMS for SMEs’ into the market, as has Queen’s Award for Enterprise winning tech entrepreneur, Rajeeb Dey MBE. His latest startup, Learnerbly, has just raised £1.6m in a seed funding round led by Frontline Ventures, with participation from Playfair Capital, the Mayor of London’s London Co-Investment Fund, Future Planet Capital and assorted angels.

Other startups have taken a tilt at self-paced learning (see SmartUp finds smart money to gamify ‘communion’) but I just don’t see how any of them are going to make any money. Indeed there is no pricing information on Learnerbly’s website and no mention of a financial model in a recent TechCrunch interview with the founder.

It’s a noble cause – but that’s not to say it’s a viable commercial proposition.

Posted by Anthony Miller at '08:25' - Tagged: funding   startup  

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Wednesday 19 July 2017

Privitar goes public on $16m funding round

logo

On 25th May 2018, GDPR (General Data Protection Regulation) will apply in the UK, which has rather brought the issue of data privacy to front of mind for most businesses (at least, it should have – see GDPR raises the stakes). Not surprisingly, there is a raft of software products in the market to assist with various aspects of compliance.

One such startup attracting investor interest is London-based Privitar, which recently closed a $16m Series A funding round led by Partech Ventures with participation from CME Ventures and Salesforce Ventures, along with existing investors IQ Capital, 24Haymarket and Illuminate Financial. Founded in 2014, Privitar had previously raised £3m in seed funding in August 2016 following a $1.2m ‘angel’ round the prior year.

Privitar is essentially a data anonymiser with bells on, the bells including obscuring data elements that themselves are not direct identifiers but from which a person’s identity could be established in combination with such ‘quasi-identifiers’ from other data sources, for example an individual’s date of birth and postcode. Neat.

Posted by Anthony Miller at '07:50' - Tagged: funding   startup  

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Tuesday 18 July 2017

Castleton revenue up 12%

logoCastleton Technology grew its revenue 12% to £20.3m in the financial year ending March 2017, with adjusted EBITDA up 22% to £4.4m. The social housing software and managed service provider saw basic earnings per share up to 0.59p from a loss of 1.56p in FY16, with net debt falling slightly to £9.4m from £10m a year earlier.

Several managed services contributed to the positive numbers, including a 10 year contract with the Clúid Housing Association in Ireland, a 5 year contract with Arcon Housing Association in Manchester and a 4 year contract with Wentworth Community Housing in Australia.

Castleton has spent wisely on competitive acquisitions in recent years (including Montal, Documotive, Opus, Keylogic, Brixx, Impact Applications and Kypera), the integration of which is largely complete. It now counts 750 customers, with 60% recurring revenue reflecting a greater focus on SaaS fees and upselling to existing software customers (35% of clients now take more than one product or service).

New CEO Dean Dickinson, appointed in October, appears to be overseeing a continued turnaround which began in FY16 when Castleton turned a £100k loss into an adjusted EBITDA of £3.6m.

Posted by Martin Courtney at '10:02' - Tagged: results   managedservices  

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Tuesday 18 July 2017

NCC Group: battered but not broken

logoFull year results from NCC Group provide the proof of how painful a year it has been (you can track the story back from here) and that further turmoil is ahead. Following the initial stage of its strategic review, the plan is to sell off its software testing and web performance businesses (will TestPlant and SQS be pricking up their ears at this?). The cyber security and risk mitigation provider will also undertake an operational model shakeup in an effort to achieve better internal integration.

Despite 17% revenue increase to £244.5m organic growth was just 3% and performance across the year to May 31 2017 fell short of expectations. Profits were badly impacted, resulting in an operational loss of 53.4m vs. a year ago profit of £11.4m and a fall in adjusted EBITDA from £45m to £36m, although that was in line with revised expectations. Executive chairman Chris Stone who took up the post in April stressed that “our business is not broken”, and rightly highlighted strengths in its core markets, but there is a lot to fix.

We’ll need to analyse the objectives and new operating model NCC Group has laid out but we can expect sweeping changes as it undertakes a reassessment of virtually everything it does and pushes cyber security up the agenda. 

Posted by Angela Eager at '09:39' - Tagged: results   strategy   software   security  

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Tuesday 18 July 2017

Atos Worldline extends geographical reach with DRWP

Worldline logoWhen Atos subsidiary, Worldline, revealed its 2017-2019 ambitions at the end of last year, it set out a clear goal for its Merchant Services business: “we will actively pursue its geographical expansion and acceleration by leveraging the recent acquisitions of Paysquare and KB Smartpay in the Czech Republic and our wide portfolio of omni-commerce offerings.”

In line with this ambition, Worldline has announced the acquisition of Digital River World Payments (DRWP) from Digital River Inc. DRWP is an online global payment services provider serving “Tier 1” online merchants, offering a portfolio of acceptance and optimisation solutions for leading enterprise brands across arrange of industries. The business was founded in 1997, is headquartered in Stockholm, and employs 1,200 people worldwide. Gross revenue in 2016 was €37m. The acquisition is expected to close on or before the end of Q317. Worldline will integrate DRWP into its Merchant Global Services business line.

This is a bite-sized acquisition for the €440m Merchant Services and Terminals division of Worldline. But it represents significant progress towards the division’s 2019 ambitions, extending geographical and functional reach, and bringing onboard complementary technologies. Notably, Worldline will obtain its first operational positions in Sweden, the US and Brazil, and will have access to a new high-quality client base.

Posted by Georgina O'Toole at '09:39' - Tagged: acquisition   payments   M&A  

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Tuesday 18 July 2017

EMIS on track despite NHS funding challenges

EMIS Group logoHealthcare software and services provider, EMIS Group, has stated that H1 FY17 performance is in line with expectations, with revenue expected to be slightly up on this point last year (H1 FY16: £78.7m).

As we mentioned earlier this year (see EMIS delivers solid 2016 despite 'NHS headwinds'), EMIS has reorganised its business, integrating its Primary & Community Care and Secondary Care divisions to form Primary, Community & Acute Care. This move is intended to allow EMIS to better respond to integrated healthcare markets and improve cost savings.

Since the appointment of Andy Thorburn as CEO at the start of May this year (see EMIS names new CEO), the business has expanded its cost saving efforts and expects to see benefits in H2.

The reorganisation means that EMIS will now operate under four segments: Primary, Community & Acute Care; Community Pharmacy; Specialist & Care; and Patient. EMIS has announced the restatement of segmental reporting to reflect the new structure, which shows that Primary, Community & Acute Care generated 76% of last year’s total revenue.

It’s positive that EMIS has been able to improve recurring revenue despite NHS funding pressures. The secondary care market continues to be constrained, but management are confident that its cost saving efforts mean that the full year will be in line with expectations.

Posted by Dale Peters at '09:31' - Tagged: results   health   healthcare   H1  

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Tuesday 18 July 2017

Confident Ideagen: organic growth alongside buy-and-build strategy

logoWith four acquisitions completed (start the trail here), following a year of abstinence, Ideagen has changed shape but achieved the outcomes it planned for, as revenue for the year to April 30 2017 rose 24% to £27.1m and it met or exceeded key financial and operational objectives.

The information management provider who targets regulated industries, is back to pursuing a strategy of buy and build but importantly says it is committed to achieving organic growth too. Indeed it achieved a more than respectable 10% organic growth, the same as in the previous year. The bottom line moved upwards too with adjusted EBITDA up 26% to £6.9m and adjusted PBT of £6.9m, a 22% increase.

GRC is the growth engine - and 84% of revenue - and where Ideagen is building scale. The aviation, life sciences, financial services sectors performed well over the year, more than making up for the clinical medical solutions sector which was hit by NHS Trust funding uncertainty. What was particularly reassuring was the growth in SaaS revenue - up 133%, taking it to £4.8m. Operationally it attracted new customers (150 on-premise, 45 SaaS) while also securing extensions with existing customers such as Jaguar Land Rover, DHL and BDO. Management is in a confident mood and GRC is a growth market. 

Posted by Angela Eager at '08:43' - Tagged: results   software  

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Tuesday 18 July 2017

Reach reaches $7.5m for AR robo-crab

MekaMonlogoYou’re too late if you want to buy one – they’re sold out!

This is MekaMon, the augmented reality-featured robo-crab developed by Bristol startup, Reach Robotics, which has just raised $7.5m in a Series A funding round co-led by Korea Investment Partners (KiP) and IGlobe. NCSOFT, Kin Yat, London Venture Partners, Passion Capital, Qualcomm Ventures and Hardware Club also participated.

According to TechCrunch, Reach sold its entire initial 500 production run of the $279 MekaMon, which features ‘4 legs (3 Degrees of freedom per leg), Shields and Weapon upgrade slots’. Clearly, this crab is not meant for making pâté.

I suppose the question is, will it be netted by Softbank (see Robo-dog Spot finds Japanese owner)?

Posted by Anthony Miller at '07:59' - Tagged: funding   startup  

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Tuesday 18 July 2017

Imperial sides with IP Group over Touchstone

logoIn what will probably turn out to be the deal clincher, Imperial College, the ‘birthplace’ of university ‘Golden Triangle’ investor, Touchstone Innovations (the erstwhile Imperial Innovations), has sided with bidder IP Group (see Touchstone holding out against IP Group) as a result of an improved offer from Touchstone’s larger peer.

Though non-binding, Imperial’s intent to pitch in its 15.3% holding in Touchstone would take acceptances of IP Group’s offer to 89.7% of Touchstone’s shares.

Sounds pretty much like game, set and match.

Posted by Anthony Miller at '07:29' - Tagged: acquisition  

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Monday 17 July 2017

**New Research** – The State of UK and European Fintech

FTV3A lot has been happening over the past six months in the rapidly expanding UK and European Fintech arena. The latest report in our series of FinTechViews reports (available to subscribers to FinancialServicesViews) sheds some new light upon important and topical questions, such as;

  • how is the industry shaping up for the key regulatory milestones for Open Banking early in 2018?
  • are challenger banks making headway?
  • how are the US and Chinese tech giants addressing the European market?
  • can we see yet how technology is going to transform commerce?
  • is AI (Artificial Intelligence) out-of-control?
  • does any of this actually make any difference to consumers and businesses?

The recent Money2020 conference in Copenhagen has given us some real insight into current trends and concerns and deepened our understanding of how Fintech can accelerate real change across the sector.  

We have also been able to identify some significant opportunities for Software and IT Services suppliers as they and their customers interact with this vital and dynamic market segment. Subscribers can download this new report, “The State of UK and European Fintech – A view from Money 2020”, here).

Posted by Peter Roe at '11:49' - Tagged: big+data   payments   legacy   regulation   FinTech  

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Monday 17 July 2017

StatPro update shows continued progress

logoStatPro, the increasingly cloud-based provider of portfolio analysis and asset pricing services has published a brief trading update, before the full report on half-year figures which will be delivered on August 2nd.

Trading has been in line with management expectations, with a further shift towards cloud. Group Annualised Recurring Revenue (ARR) from SaaS solutions now comprises 82% of the Group total, up from 74% last year. Group ARR was up by 47% to £53.2m. We should get a clearer view of organic growth and profitability trends when the full figures are forthcoming. The integration of newly-acquired UBS Delta is going well.

2017 should be a year of significant progress for StatPro. We would look for a substantial pipeline of business as StatPro Seven customers migrate to the Revolution Performance cloud-based replacement. Cost synergies may take some additional time to come through, but we would look for revenue gains as annuity revenues build, greater cross-selling and capture of wallet share. The UBS deal gives more scale and resources in the increasingly important area of risk management.

Posted by Peter Roe at '09:50' - Tagged: cloud   software   risk  

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Monday 17 July 2017

Proxama adding data points

logoIn a world where data is increasingly valuable (see TechMarketView’s Unlocking the Intelligence Research theme), it is good to see Proxama build on its position as a provider of mobile location data and analysis.

As we reported at the start of July, the Proxama management are repositioning this embattled company as a data business rather than a specialist beacon network provider to drive earlier returns. Two pieces of recent good news should give them support. Firstly, the Rail Delivery Group is to use Proxama’s technology in its National Rail Enquiries app, for both Android and iOS smartphones. As the iOS app is rolled out, the Proxama management report that this will add a further 1.1m consumers to its total audience. The greater the number of data points, the more intrinsically valuable the data – so this is a step in the right direction.

The second positive is the renewal of a contract with a major Canadian bank to use Proxama’s location services throughout its branch network. There is always the danger that Proxama is spreading its resources too thinly, but a presence in the Americas will surely be a useful shop window as the company builds its new business model.

Posted by Peter Roe at '09:47' - Tagged: mobile   data   location  

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Monday 17 July 2017

Parity progresses rebalancing of business

Parity logoConsultancy and staffing business, Parity, has much good to say about its Consultancy Services business in its latest trading update. And that means things are moving in the right direction as the Group continues to try and rebalance the business towards that more profitable side of the business. The division performed ahead of expectations, generating “significant growth in revenues” in the six months to end June. This follows an equally positive AGM statement in May (see Steady start for Parity under new Chairman).

Meanwhile, revenues dropped slightly for the Professionals division. Parity points to “lower public-sector contractor volumes resulting from supply-side uncertainty and then the transition required to deal with the IR35 taxation reforms”. It is a familiar story but one that doesn’t seem to have hit Parity quite as hard as other staffing businesses (and, indeed, Parity points to an improvement post IR35 implementation). Hays, this month (see UK public sector still tough for recruiter Hays), cited a tough public sector market and also pointed to IR35 issues. And PageGroup pointed to Brexit, political uncertainty and a late Easter for its poor UK performance (see UK tech recruitment soars at Page Group).

The overall result for Parity in the first six months of the year is the expectation of double digit growth in Group operating profit. The other good news is that net debt has been reduced so that the company is well-positioned to fund future investment in its sales capacity. That should further advance progress in rebalancing the business.

Posted by Georgina O'Toole at '09:46' - Tagged: recruitment   tradingupdate   consultancy  

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Monday 17 July 2017

Did Wimbledon 2017 satisfy your stats fetish?

wimIt’s a sad Monday with Wimbledon over for another year. However, I was lucky enough to go a couple of times this year, and see both Johanna Konta and Andy Murray in action. Although Wimbledon ‘live’ is always such a fantastic experience, there are of course two downsides to being courtside. Firstly, you don’t get the instant replays. And secondly, you don’t get to see all of those wonderful game and player statistics.

On one of my visits to Wimbledon this year I was very fortunate to be allowed to visit the ‘command centre’ run by IBM and housed in ‘the bowels’ of Wimbledon under the media centre. IBM is the “Official Supplier of Information Technology”, a partnership that began back in 1990. Other long-standing official suppliers include Slazenger (Official Ball - began in 1902), Robinsons (Official Still Soft Drink - began in 1935), and Rolex (Official Timekeeper - began in 1978). More...

Posted by Kate Hanaghan at '09:39' - Tagged: cloud   analytics   data   Watson  

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Monday 17 July 2017

**NEW RESEARCH** Brexit Survey 2017: The Results

Brexit Survey ReportLast month, in the week following the general election, we launched our Brexit survey. Today we can share the results.

As we discussed in our recent reports: Brexit: The Implications and UK SITS Market Trends & Forecasts 2017 there is still a great deal of uncertainty about what Brexit will actually mean. The results of this survey clearly show how this uncertainty is having an impact on UK technology suppliers.

With nearly two years of negotiation ahead of us, short and medium term planning is challenging. For many suppliers, particularly those in the public sector, the lack of clarity is leading to delays in decision making and orders taking longer to complete.

Companies will not find it as easy to plug skills gaps if they no longer have ready access to skilled EU workers. Comments from respondents suggest that businesses are already exploring the potential for EU-based offices and increasing offshoring more generally.

In our recent forecasts, we have taken the view that, as we approach March 2019, we will see an uplift in software and IT service opportunities. Investment will be required in designing processes and systems to meet the needs of the post-Brexit world. These are views shared by many of our respondents. Although a relatively small proportion of respondents saw Brexit as an opportunity between now and the end of 2017, they were much more optimistic about the year following March 2019.

Uncertainty is damaging and Brexit will bring significant challenges, but it’s not all doom and gloom; there will be opportunities and we may well see a more digitally-focused UK emerge from the process.

Brexit: the impact on UK SITS suppliers is available for all subscribers to download now.

For further information on becoming a client, please contact our Client Services team.

Posted by Dale Peters at '09:25' - Tagged: research   brexit   survey   referendum  

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Monday 17 July 2017

Atos targets hybrid cloud expansion with Azure Stack

Atos targets hybrid cloud expansion with Azure StackAtos' patnership wtih Dell EMC to add support for Microsoft’s Azure Stack private/hybrid cloud platform to its Canopy cloud service is one of many similar announcements we expect to see over the next few months.

Cloud is a key element of Atos’ Digital Transformation Factory as the French company looks to help its customers (particularly those in the public sector) deploy new applications in Microsoft’s Azure public cloud more easily whilst maintaining required security and compliance controls.

Mutliple SITS suppliers and cloud service providers – including Accutech, Brightsolid, CGI UK, Cogeco Peer 1, Daisy Group, Datapipe, New Signature, NTT Com, Pulsant, Rackspace and Trustmarque (Capita) - have expressed an interest in providing an Azure Stack service to date. Subscribers to SecureConnectViews can access our report ‘Azure Stack: Where Microsoft’s Private/Hybrid Cloud Platform Sits in the UK Cloud Services Ecosystem’ here.

Although unveiled in May, Microsoft’s official release of Azure Stack is planned for September. That leaves Atos (and others) a relatively short period of time to ensure performance and interoperability between the Microsoft-certified Dell EMC hardware/software platforms it will use to build links from its customer on-premise data centres to the Azure cloud, though we suspect much of the integration work will have been done already.

It will be interesting to see just how much of a boost Azure Stack can give Canopy, after Atos outlined ambitious growth targets for its cloud business late last year.

Posted by Martin Courtney at '09:14' - Tagged: hybridcloud   Atos   AzureStack   DellEMC  

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Monday 17 July 2017

Touchstone augments WaveOptics funding

logoIt’s still very much business as usual for university ‘Golden Triangle’ investor, Touchstone Innovations (the erstwhile Imperial Innovations) despite the ongoing acquisition bid by IP Group (see IP Group + Touchstone = sterling investor ‘unicorn’? et al), witness recent top-up investments in mobile wallet startup YoYo and IoT startup Concirrus.

‘Innovations’ (as they prefer to call themselves – begging the question as to why they went through the grief to change the first part of their name in the first place if they’re not going to use it!) has just tossed another £3.1m into the pot for Abingdon-based augmented reality technology developer, WaveOptics, as part of a £12m Series B funding round, in which existing investors Robert Bosch Venture Capital and Octopus Investments, and new investor Gobi Ventures, also participated. Innovations now holds just under 24% of the business.

Also invested in WaveOptics, though not apparently participating in this round, is London-headquartered AR software developer, Blippar, a visual search engine which arguably competes with Innovations’ portfolio company, Cortexica (see Cortexica visualises new horizons et al).

WaveOptics is quite literally at the forefront of AR, developing the underlying optical technology that allows computer-generated images to be projected through glass (and in future, plastic) lenses. Though I can’t see any prototypes on its website, WaveOptics hopes its technology will eventually be incorporated into lightweight eyewear that can be used in industrial applications and beyond. This seems, to my untrained eye, to be a quite different technology to that used in the now defunct Google Glass adventure, so let’s hope that WaveOptics has somewhat better success.

Posted by Anthony Miller at '08:29' - Tagged: funding   startup  

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Saturday 15 July 2017

On business dress codes

suitMy own daughters (now both in the 40s) both went to schools until the age of 16 that had school uniforms. But the worst days were the occasional ‘dress down Fridays’. Which jeans? What top? And, most vital, what shoes? A nightmare.

Throughout almost all my 50 year working life, I too wore a ‘uniform’ to work. Suit, shirt and tie and black shoes. My ‘individuality’ came with my ties - I was known for always wearing a red tie of some kind and people would comment if I did not (sad, really!)

But now company dress codes even come up as a topic at our regular executive dinners. Most companies want to get rid of the ‘business attire’ norm - ‘the stuffy shirt and tie’ as they put it. I was reminded of this with the story today that Goldman Sachs is to allow its 8,000 tech and engineering staff to dress ‘casual’.  The reason is simple - they are finding it increasingly difficult to recruit the bright young tech staff they need against the ultra-relaxed environment at Facebook, Google, Amazon etal.

I don’t object to casual. The problem for me, going from meeting to meeting in London, is to know what to wear that will be OK all day. Last week I was forever putting on and taking off my tie. Then I looked overdressed in my suit even when tieless at one meeting. Now you may say ‘you shouldn’t care’. But I do! I never like to be the ‘odd man out’. That’s why uniforms at school and work were actually quite useful. They not only made it easy to choose what to wear each day but they also made sure that people judged you ‘on the quality of your mind’ - not on how cool your clothes looked.

Footnote - I know the same issues apply to women too . So please don’t comment on this being a sexist article.   

Posted by Richard Holway at '16:54'

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Friday 14 July 2017

*New Research* Taylor review: raft of potential tech opportunities

Matthew Taykor, report authorEarlier this week, the UK Government published ‘Good Work: The Taylor Review of Modern Working Practices’ (commissioned by Government and written by Matthew Taylor, pictured). You can read the tome here, and, it is indeed worth a read, because technology runs as a theme throughout: as a key driver of the review, as a solution to many of the issues raised, and as something that needs to be handled with care.

Firstly, technology was one of the key drivers of the review. The Gig Economy, which has broad meaning but has become synonymous with the likes of Uber and Deliveroo, i.e. people using apps to sell their labour, has given rise to new business and employment models. This new way of working has raised questions about the suitability of current employment law in addressing the needs of people working within those models. In addition, still Government needs to understand with more certainty how many people are working in the gig-economy (and how many are doing it just to supplement other work); that’s going to require a focus on reliable data and analytics.

Secondly, technology is highlighted as a solution to many of the issues raised, i.e. ensuring that all workers, regardless of the type of employment they are in, are treated fairly and decently, and “with a realistic scope for development and fulfilment”. Here, ICT providers should be able to identify a fair number of opportunities.... Read more here...

Posted by Georgina O'Toole at '11:26'

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Friday 14 July 2017

New backers plan cyber buy-and-build for The Bunker

bunkerForesight Group has sold ultra-secure managed services provider, The Bunker, to Palatine Private Equity for an undisclosed sum.

The Bunker builds, hosts and manages high security, high availability IT infrastructure platforms. Foresight first invested back in 2006 when The Bunker had acquired data storage facilities in Ash and Greenham Common from the Ministry of Defence. At the time it was loss making on revenue of £1.8m.

Over the past three years, The Bunker has registered compound annual growth of c14% on recurring revenues, with the top line now standing at around £9m. It’s built something of a reputation for itself as a high security expert in the FinTech space, benefiting as customers in the mid-market look to move to the cloud and increase security levels around hosting. 

New owner, Palatine PE, says it plans to use The Bunker as a buy-and-build vehicle to create a “full service cyber security” player. Several acquisition targets have apparently already been identified, suggesting Palatine will move quickly to achieve its objectives. There are certainly numerous small cyber firms out there and many of the quality ones are fast-attracting investment attention. Take for example Cambridge-based Darktrace, which we wrote about yesterday - Darktrace raises US$75m, valued at US$825m.

Palatine’s strategy reminds us of the move late last year by BC Partners and Medina Capital to buy CenturyLink’s data centre estate (it had five data centres in the UK). The new owners said they planned to create a global secure infrastructure platform by combining CenturyLink’s data centres with Medina’s existing portfolio.

Suggested reading: The London data centre market: Shaped by cloud and corporate activity (subscribers to InfrastructureViews only – contact Deb Seth for more information).

Posted by Kate Hanaghan at '09:45' - Tagged: acquisition   hosting   datacentre   datacentreservices   cybersecurity  

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Friday 14 July 2017

Redstor: Reinventing for scale?

redstorWe’ve been tracking Reading-based Redstor for several years now and were more than pleased to see the firm selected to be part of our inaugural Great British Scaleup event, run in association with ScaleUp Group and Cogeco Peer 1.

If one thing characterises the firm - led by CEO, Paul Evans - it is its ability to reinvent itself time and again. Originally a reseller of branded storage products (EMC, Quantum and Symantec) back in the late 1990s, Redstor came to our attention as it evolved as a master distributor of cloud back up services and qualified as one of our first Little Brgbsitish Battlers.

A key milestone in its most recent evolution was the 2015 acquisition of South Africa-headquartered backup and DR software provider Attix5. Attix5 and Redstor were partners for many years, with Redstor selling Attix5’s technology into its customers over here in the UK. Since acquiring the IP, Redstor rebranded the software, dramatically increased the pace of development, and used it as the foundation stone to fulfill its vision of building a data management and security platform.

To complete this vision – and to continue its evolutionary journey – Redstor is more than willing to acquire additional sub-scale companies with their own IP. Something tells us Redstor will continue to reinvent itself in the months and years to come.

The TechMarketView Great British Scaleups programme is run in association with Advisory Sponsor, ScaleUp Group, and Enterprise Cloud & Infrastructure Services Technology Partner, Cogeco Peer 1.

Posted by HotViews Editor at '09:35' - Tagged: datamanagement   backup   GreatBritishScaleup  

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Friday 14 July 2017

Cognizant brings digital workshop to London

logoI can just about forgive the branding for New Jersey-headquartered, but Indian-centric offshore services major, Cognizant’s, growing network of digital workshops – or Collaboratories as the company calls them – as they sound like a jolly good idea.

Basically a combination of showcase and dare I say ‘innovation’ workspace, the newest has just opened in Paddington under the auspices of Dr Sanjiv Gossain, Senior Vice President and Head of Cognizant Digital Business, Europe. Gossain, previously head of Cognizant’s UK business, returned to Cognizant a year ago after a stint at the erstwhile CSC (see here).

TechMarketView will hoof it up to Paddington in coming weeks when we shall tell you more.

Posted by Anthony Miller at '09:16' - Tagged: offshore  

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Friday 14 July 2017

Quill pens further funding

logoOnce you strip away the marketing speak – which is in fact its very business – London-based Quill Content is a freelance-based multilanguage marketing agency with a souped-up content management system.

Founded in 2011, Quill recently completed what appears to be its third funding round, backed by existing investor Smedvig Capital and Panoramic Growth Equity among others. The sum raised was not disclosed, however, they did say that total funding raised so far is £10m. From what I can see, Quill raised £1m in May 2013 and a further £5m in March 2014, suggesting this was in fact a ‘down’ round for £4m.

Quill claims a global network of over 2,000 freelance content creators, and boasts marquee brands such as John Lewis, Google, eBay, Zalando and Mothercare in the client mix. I can’t find reference to a pricing model but its proposition appears to be around ‘speed and scale’, though whether they can charge a premium - or charge the same at lower cost - compared to traditional marketing agencies I really have no idea.

Posted by Anthony Miller at '09:10' - Tagged: funding   startup  

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Friday 14 July 2017

'Making Tax Digital' delayed

MTDI suspect that there will be great relief by accountants and SMEs alike that HMGovt has given in to pressure and delayed/altered the introduction of digital tax submissions. These were due to start for everyone from Apr 18. Now those under the VAT threshold (£85,000) will be able to choose ‘a pace that is right for them’, i.e. possibly never. Companies above the VAT threshold will only have to keep digital records for VAT purposes from Apr 19.

I don’t think there was too much opposition to encouraging companies - small and large - to keep proper (and nowadays that really means digital) accounting records. The real issue was the implication that they should both prepare and submit P&Ls to HMGovt on a quarterly basis which would then force them to pay tax on a quarterly basis too. We at TMV were ‘rather unhappy’ by that prospect. Although we have very accurate monthly management accounts, they are only scrutinised by our accountants once a year who, for a significant charge, do all the tax computations on the more arcane bits. The thought of doing this every quarter appalled me.

As every VATable business already has to submit and pay VAT on a quarterly basis, having to submit the details digitally is not a huge or onerous step.

So the concessions announced yesterday seemed sensible. But, there again, why were these policies and timescales put forward in the first place?

Posted by Richard Holway at '08:53' - Tagged: government   digital   tax  

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Friday 14 July 2017

Cisco buys Observable Networks for security monitoring

Cisco buys Observable Networks for security monitoringCisco will add to its security portfolio with the acquisition of US start-up Observable Networks, an endpoint protection specialist that uses behavioural modelling to scan users, devices, networks and public/hybrid cloud infrastructure for cyber threats.

Terms of the deal (expected to be completed in Q118) were not disclosed but the purchase price is likely to be low. Observable has raised around US$6m in funding since being founded in 2011.

The start-up clicks two important boxes for Cisco - software and cloud - as the networking company continues its mission to shift more of its revenue off hardware and into ‘software-centric’ solutions and services.

Like TechMarketView (see our Market Trends & Forecasts 2017-2020 report) Cisco anticipates strong investment in cyber security defences amongst public and private sector organisations following a spate of high profile hacking attacks this year (with more certain to come). Those companies are likely to need comprehensive security solutions which plug every conceivable hole in their IT infrastructure backed up by early warning systems which anticipate and mitigate cyber threats in advance of them being able to do any serious damage.

To meet those requirements, Cisco and other large suppliers (including Symantec and Microsoft) have been steadily buying up start-ups to build out their security portfolios, and we expect more acquisitions in a similar vein over the course of 2017.

Observable's cloud-native platform is delivered under a software as a service (SaaS) model and uses machine learning and dynamic behavioural modelling of all devices on the network, both on- and off-premise, to identify internal and external threats more quickly. The business will be incorporated into Cisco’s Stealthwatch service (previously Lancope), which offers a cloud license that extends visibility into Amazon Web Services (AWS) and Microsoft Azure public clouds.

Posted by Martin Courtney at '08:48' - Tagged: acquisition   cybersecurity   Cisco  

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Friday 14 July 2017

UK Public Sector still tough for recruiter Hays

logoEchoing the same sentiment – indeed the very same words – as in previous trading statements, the UK Public Sector market ‘remained tough’ for UK-headquartered, international staffing giant Hays. The combined effect of Easter and IR35 (but no mention of Brexit) served to drag Public Sector net fees (i.e. gross profit) down 17% in Q4 (to 30th June).

In fact there was no ‘good news’ story for Hays’ UK business, for which net fees declined by 5% in the quarter, much as with smaller peer PageGroup. Net fees in Hays’ once buoyant UK IT recruitment sector fell by 16% because of its exposure to the Public Sector market; in contrast, IT was one of the top performing sectors for PageGroup in the (see UK tech recruitment soars at PageGroup). Meanwhile, even smaller recruiter Robert Walters gained share in the UK despite declining growth (see here).

Across the group, Hays’ headline net fee income grew by 15%, representing 7% growth like-for-like. Management expects to report operating profit ‘marginally ahead’ of consensus when it reports FY results at the end of August.

Posted by Anthony Miller at '08:41' - Tagged: trading   recruitment  

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Friday 14 July 2017

Show time for Infosys

logoIt was show time for Bangalore-based offshore services major, Infosys, on a couple of fronts.

picFirstly, CEO Dr Vishal Sikka arrived at the quarterly earnings briefing in a driverless vehicle (golf buggy, actually) though the press puff didn’t actually say where from (probably not his home in California). The buggy was apparently developed at the company’s engineering services lab and main education campus in Mysore, where I assume trainees must play much golf.

The second ‘show’ was all about the numbers, which just pipped those of archrival and Indian pure-play leader, TCS (see TCS – a time of transition). Infosys’ headline revenues for Q1 FY18 (to 30th June) grew by 6% yoy to $2.65b, 3.2% higher than the prior quarter. Operating margins held steady yoy at 24.1%, though down 60bps qoq. Management is sticking to its FY guidance of 7.1% USD growth and 24% operating margin.

Like TCS, Infosys’ headcount declined marginally (by 1,800) in the quarter to 198.6k employees as ‘fresher’ hiring declined. Unlike TCS, though, revenues grew faster than headcount even on a yoy basis.

Regular readers will know I am not a ‘believer’, but the truth is in the numbers, and the numbers are better than I expected for the ‘first Act’.

Posted by Anthony Miller at '07:53' - Tagged: results   offshore  

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