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Collapse 2016 (38)2016 (38)
Collapse September (38)September (38)
Accenture buys Kurt Salmon retail consulting business
23 Sep 2016
Constellation ups its offer for Bond
23 Sep 2016
K3 announces CEO succession
23 Sep 2016
Oracle-Rimini Street legal costs award doesn't change anything
23 Sep 2016
WILL YOU BE THE 100th LITTLE BRITISH BATTLER?
23 Sep 2016
Are you looking to raise your profile in UKTech?
23 Sep 2016
Scisys bounce back in H1
22 Sep 2016
Sopra Steria shared service ‘shares’ after seven years!
22 Sep 2016
Apple rumoured to be after UK's McLaren
22 Sep 2016
IP EXPO Europe 5-6th October 2016, ExCeL, London
22 Sep 2016
Positive momentum points to better H2 for ServicePower
21 Sep 2016
Mi-Pay looks set for faster progress
21 Sep 2016
Eagle Eye: New CEO aims for 'better, bigger, faster'
21 Sep 2016
Dillistone encouraged by H1 performance
21 Sep 2016
Capita wins £70m customer management deal with Three
21 Sep 2016
Adobe: rising on its content and data assets
21 Sep 2016
Misys makes a PaaS at the banks
21 Sep 2016
Eg solutions revenue dives in H1
21 Sep 2016
Igniting innovation with the cloud
21 Sep 2016
Sopra Steria adds Sybenetix to compliance arsenal
20 Sep 2016
Hostmaker beds down further funding
20 Sep 2016
*New Research*: Oracle and Salesforce stock up on AI/machine learning
20 Sep 2016
SaaS balance not yet right at Kalibrate
20 Sep 2016
Rebranded Blancco sees security software revenue up 49%
20 Sep 2016
Narrow margins blot Bango's copybook
20 Sep 2016
Access scoops up LBB Mobizio
20 Sep 2016
DueCourse borrows to lend!
19 Sep 2016
*New Research* Mastek: Digital is everything
19 Sep 2016
Capita aims to transform Adult Social Services with ChooseCare launch
19 Sep 2016
Maintel H1 revenue up 54%
19 Sep 2016
Adgorithms looking to Albert to reposition the business
19 Sep 2016
Atos gets gold star from Cabinet Office
19 Sep 2016
NetDimensions revenue hit by cloud transition
19 Sep 2016
Agilisys launches Community Cloud
19 Sep 2016
Instem grows 21% in exciting H1
19 Sep 2016
* New Research* Trends and Drivers in the UK Network Connectivity and Services Market
19 Sep 2016
Infosys pre-warns; EVP exits
19 Sep 2016
WILL YOU BE OUR 100th LITTLE BRITISH BATTLER?
19 Sep 2016

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Friday 23 September 2016

Accenture buys Kurt Salmon retail consulting business

lAccenture is buying Kurt Salmon’s 260 person-strong retail and consumer goods management consulting business, for £127m in cash.

Accenture is paying current owner UK-based Management Consulting Group (MCG) 1.8x FY15 revenue of £71.4m, which sounds about right for a growth business in a hot space like retail and consumer digital strategy. Indeed, this is reflected in the numbers, which show the business grew 9% in the first half of 2016 to £37.1m, and had an operating margin of 10%.  

The acquired Kurt Salmon business employs some 260 people in the US, UK, Germany, China and Japan, and will become part of Accenture Strategy, boosting existing capabilities in areas like logistics and supply chain, merchandising and product development, corporate strategy and due diligence and omni-channel retail strategy. The business also has a Digital strategy and development division (KS Digital), which it built through the acquisition of specialist Mobispoke in 2015.

The acquired business is a change in direction from Accenture’s recent investments, which have largely been in building up its digital design, consulting and delivery capabilities (see Digital transitions: supplier progress Accenture). The high value strategy piece is also very important though for capturing new business, client mindshare and drawing those opportunities back into Accenture's core delivery engine.

MCG is another story. It will now exit its investment in the Kurt Salmon business, following a series of disposals during the year. This will be leave it a shadow of its former self, retaining business consultancy Alexander Proudfoot, which is a c£50m international outfit focused on the natural resources sector. Here Accenture yet again shows it remains nimble and leaving the legacy providers in its wake.

Posted by John O'Brien at '09:47' - Tagged: acquisition   retail  

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Friday 23 September 2016

Constellation ups its offer for Bond

lSoftware aggregator Constellation Software will be hoping the stars final align over its plans to takeover Bond International, after its UK subsidiary Constellation UK increased its cash offer for the business to 115p per share.

This latest bid is 10% higher than before, and values the entire business at £48.7m. This should go some way to appeasing shareholders who rejected the previous offer of 105p per share (see here).

The offer for the whole business is being made on condition that Bond rejects the proposed £17.25m sale of its recruitment software business to private equity firm Symphony Technology Group (STG) (see Bond sets higher bar for Constellation with new US bidder). Meanwhile, Texas-based software aggregator ESW Capital, who put in a speculative approach earlier this month, has until 10 October 2016, to show its hand.

Posted by John O'Brien at '09:42' - Tagged: software  

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Friday 23 September 2016

K3 announces CEO succession

LogoIt hasn’t taken long for K3 Business Technology Group to find a new CEO following the announcement earlier this month that incumbent David Bolton will move to the seat of chairman (see here).

Adalsteinn Valdimarsson will take over the CEO role on October 1. He joined K3 in July as a NED. We don’t know much about Valdimarsson – but look forward to getting to know him – but he has been in the software industry for 20+ years, founding and expanding product based companies. Significantly, given K3’s heavy investment in its Microsoft Dynamics based product, he also brings experience in retail and Dynamics.

With further changes and new appointments to the senior management team on the cards it looks like K3 is gearing up for a new phase in its development.The divisions between the different parts of the company have been becoming more evident since ramping up its focus on retail and its own IP making us wonder whether structural change is on the cards.

Posted by Angela Eager at '09:34' - Tagged: software   managment  

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Friday 23 September 2016

Oracle-Rimini Street legal costs award doesn't change anything

LogoThe latest round in the Oracle vs. Rimini Street copyright case saw the Nevada Federal Court award Oracle $46.3m in legal costs and a permanent injunction barring Rimini Street from illegally using Oracle downloads and documentation.

LogoIt’s not a great triumph for Oracle who will only get around a third of the costs it was originally seeking; it previously awarded $50m in legal costs. With more wrangling (appeals) likely, Rimini Street says it will pay up to $124m. The third party maintenance provider claims it has long since stopped the copyright infringement practices so the injunction does not appear to change anything.

The battle is over. Rimini Street has continued to do business and seen reasonable growth. Cocking a snook at Oracle, it has just announced 39% revenue growth across Oracle products for the year to June 2016, led by database and middleware lines (up 205%) – an interesting metric highlighting where organisations want stability and are not planning changes. E-Business Suite business was up 48%. Rimini Street also announced support for its 11th Oracle product – ATG Web Commerce products. SAP products are supported too.

While enterprises are not surging towards third party maintenance, it is a useful tool for those looking to release budget for digital investments and there is scope for SIs to make more use of it when helping customers identify areas of efficiency.

Posted by Angela Eager at '09:07' - Tagged: software   legal  

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Friday 23 September 2016

WILL YOU BE THE 100th LITTLE BRITISH BATTLER?

logoWe are extremely proud to announce that the next TechMarketView Little British Battler event will see the one-hundredth company be widely recognised as a UK tech SME punching above its weight in local and international markets.

Since we launched the programme back in January 2012, many Little British Battlers have gone to greater things, both independently – some with new sources of external finance – and others as part of larger tech businesses. We like to think that the Little British Battler ‘brand’ helped them along the way.

We’ll be holding our ninth Little British Battler Day (LBB9) in London on Tuesday 15th November 2016.

TechMarketView’s theme for 2016 is ‘Surfing the Waves of Disruption’ – and there is no better time for SMEs to disrupt the market. We want to meet the disruptors!

Founders, CEOs and board executives from twelve outstanding, disruptive companies will be selected to participate. They will share their aspirations, ambitions and challenges in closed session with TechMarketView research directors and senior partners from our sponsors, MXC Capital, London’s technology merchant bank.

In return they will get invaluable opinion and advice on their business plans and extensive coverage in TechMarketView UKHotViews, the leading daily source of opinion and comment on the UK tech scene. UKHotViews reaches tens of thousands of senior executives and professionals in the tech industry, government, enterprise, investment community and the media. Coverage in UKHotViews has brought many exciting, little-known UK tech SMEs to the attention of the market.

LBB9 is open to independent, privately held, UK-owned tech companies with established clients and annualised revenues under £20m. Publicly quoted companies and subsidiaries of private or public companies are ineligible.

To register your application for LBB9, please complete the web-based Pre-Qualification Form by clicking here. There is no charge to apply or to participate.

Applications must be submitted by Friday 7th October.

We will advise whether or not you have been selected to participate by 28th October. If you were unsuccessful last time and believe your company is a ‘disruptor’, then please feel free to apply again.

Contact our LBB coordinator for further information.

Posted by HotViews Editor at '07:30' - Tagged: lbb  

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Friday 23 September 2016

Are you looking to raise your profile in UKTech?

Advertise with TMVWhy not do this by embedding a Sponsored Post directly within the main body of our  UKHotViews e-newsletter? These articles, written by you, also appear on TechMarketView’s website for seven days, as well as in our Twitter feed.

A Sponsored Post is an ideal way to raise your profile and brand awareness; attract customers, partners or investment; promote white papers and events, or recruit the best calibre applicants.

UKHotViews is arguably the UK’s most respected, authoritative newsletter for informed opinion and analysis on what’s happening in the UK Software and IT Services (SITS) and Business Process Services markets.

Considered a must read for anyone with ‘skin in the SITS game’, UKHotViews enjoys a high calibre readership of more than 20,000 decision makers in UK Tech. It reaches a broad spectrum of companies from the largest SITS players to emerging SMEs; as well as key players from the investment community, press, government and CIOs.

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If you'd like further details on Sponsored Posts, or to request an advertising brochure, contact Rebecca Johnson in our Client Services team. 

Posted by HotViews Editor at '00:00'

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Thursday 22 September 2016

Scisys bounce back in H1

LogoIt was good news pretty much all around at Scisys as it revealed results for the first half of 2016 (to June 30), and a marked contrast to the dreadful ‘perfect storm’ effect of the year ago period (see here).

Revenue was up 35% to £22.1m while operating profit reversed from a £1.1m loss to a £1.1m profit, despite an FX hit impacting hedging contracts in the immediate aftermath of the EU exit vote – essentially Scisys took all the H216 and FY17 pain in June 2016, but will reap top line rewards going forward). The company also improved its cash position, swapping £1.9m of net debt for £1.2m of net cash. In a nutshell, H1 was all about the “bounce back” as chairman Mike Love described it.

Speaking with the management team it is apparent there is no shortage of activity within the company and all three core divisions moved forward. Enterprise Solutions and Defence revenue was up 79%, Space rose 22% and Media and Broadcasting saw a 12% uplift, with margin improvements across all three too.

CEO Klaus Heidrich highlighted several areas of activity that show the company is making active use of its expertise to colonise adjacent areas, such as the rapidly growing commercial space flight sector.  Of particular note is the post period contract – a “stunning win” according to Heidrich - with new internet telecommunications enterprise OneWeb for the Pleniter product which will be used to plan a major mission of several hundred satellites. Scisys has also partnered with PTScientists and their “Mission to the Moon” as part of the Google Lunar-X-Price competition. Its marine defence contract with the MoD was also a standout in ESD, and the contracts with South Africa Broadcasting Corp and a large UK radio broadcaster also helped drive performance within the up and coming  Media and Broadcasting division.

What was also interesting was that although the contribution of the acquired Xibis business is tiny, technology transfer and cross customer conversations are happening between it and ESD, as Xibis apparently infuses ESB with new ideas and mobile and web approaches. This is definitely a development to watch. 

Posted by Angela Eager at '09:59' - Tagged: results   defence   media   software   it+services  

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Thursday 22 September 2016

Sopra Steria shared service ‘shares’ after seven years!

Sopra Steria logoEarly last year the TechMarketView PublicSectorViews team carried out an analysis of the progress of shared services adoption in local government – see ‘Local government shared services: where are we now?’ The conclusion in a nutshell: take-up was slow and in pockets… but it was starting to gain traction.

Evidencing how long this local government journey has taken, Sopra Steria has today announced that it has expanded its Hertfordshire Shared Service to Broxbourne Borough Council. How long has this taken? Seven years! The founding partner of the Shared Service was Welwyn Hatfield Borough Council, way back in 2009. The hub, which provides revenue & benefits services, was created with the potential for other councils to use the service… but up until now that hadn’t happened.

There are a few key takeaways here. One, local government is finally having to consider shared services as one in a whole raft of options to help drive down costs and find efficiencies, while also improving services. Movement like this shows that intensifying budgetary pressures are starting to have an impact. Two, local government’s ‘wait and see’ approach is evident; Broxbourne Council has watched carefully for several years to gain evidence that Welwyn Hatfield has benefited from the arrangement. And, three (and most important for Sopra Steria), the deal will boost the company’s reputation in the sector for excellence in delivery; Broxbourne highlights the “consistently high levels of services delivered to Welwyn” and Sopra Steria’s flexible approach, which has allowed customer services to be adapted to changing customer requirements.

In a cautious UK local government environment, particularly with the uncertainty of Brexit hanging over it, established shared services centres will be well placed to start attracting new local authorities and to add new propositions and services to existing arrangements.

Posted by Georgina O'Toole at '09:41' - Tagged: public+sector   localgovernment   contract   bpo   shared+services  

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Thursday 22 September 2016

Apple rumoured to be after UK's McLaren

lRumours abound in the media that Apple has held talks with the UK's McLaren about a takeover. A price tag of c£1.5b was rumoured. 

I have no more insider information on this but I must admit it made some sense. Apple's interest in the autoTech sector is one of the worst kept secrets. Indeed, I am convinced that autoTech will be the NBT. Indeed a NBT that will eclipse the smartphone market. Huge disruption will result and many of the 100+ year old established players will disappear with a range of new players taking their place. Google, Tesla and Apple are all expected to vie to become major players.  

lI have long suggested that Tesla would be acquired by Apple.  Great design. Loads of tech. Ramping up production etc. And Tesla is in need of Apple's cash. 

But McLaren is a really cool brand and its designs would enhance the standing of any purchaser. On top of that McLaren owns a host of auto patents which would be very useful for Apple. 

Of course, an Apple purchase would mean yet another UK icon disappearing from being UK HQed. Indeed, I would be as sad as I was to see ARM go the same way.

Posted by Richard Holway at '07:34' - Tagged: apple  

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Wednesday 21 September 2016

Positive momentum points to better H2 for ServicePower

ServicePower logoFirst half results from ServicePower Technologies confirm that it’s back trading in line with expectations despite a dip in revenue and profit during the period. There are strong indications that the second half will see an improvement as the AIM-listed workforce management software specialist continues to execute on its strategy of innovation and development.

Total revenues for the six months to end of June were £6.4m, down 7% on H115, and both operating and pre-tax losses dipped to £0.7m (compared to a pre-tax loss of £0.6m in H115). Recurring revenue is high at 98%, with product revenue comprising 66% of the total.

The numbers reflect ServicePower’s continued migration from a license to SaaS model as well as the postponement of some larger global rollouts due to customer delays and the cost of transitioning its IT to the cloud.

There’s a positive momentum about the business though with 11 deals signed in the first half and contracts with an annual value of more than £1m signed post period end, feeding a strong pipeline for the second half and into 2017. Encouragingly, an increase in revenue and cost efficiencies led to positive EBITDA and net income in June, July and August.

Overall, we’re pleased with the progress that ServicePower has made in expanding its client base, investing in product innovation, forming strategic partnerships and building brand awareness. The test will be whether this positive momentum feeds through into revenue and profit growth in the second half.

Posted by Tola Sargeant at '09:48' - Tagged: results   software  

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Wednesday 21 September 2016

Mi-Pay looks set for faster progress

logoMi-Pay, the provider of outsourced mobile payment solutions, delivered first half results showing revenue of £1.6m, up 6%, with a significantly reduced operating loss, down by 75% to £250k. Gross profit was up 33%, roughly in line with the increase in the value of transactions processed.

The company continues to benefit from growth in the mobile top-up market both in terms of numbers and value of transactions and from its ability to manage fraud risk and customer experience. These value added services counter the pressure on margins as volumes grow with the larger operators (as we saw yesterday in the Bango results).

The company is expanding its service portfolio beyond the mobile top-up business and a notable advance is the first implementation of an Amazon Payments system as a Mobile Wallet payment solution. This adds value to the relationship with the mobile operator community and also opens the door to other services in the fraud management, business information and analytics area.

Looking ahead, analyst forecasts are predicting an upturn in growth rate and a move into profit in 2017. The management are looking to growth in Asia and significantly higher volumes from one particular customer as a result of M&A activity to drive the revenue line faster. The first half showed tight control of costs, reducing them by a further £0.5m, to £1.2m, and if this is maintained, much of the revenue benefit will be able to drop through to the bottom line. The management also believe that their operation is scalable and should not require significant capex to meet the anticipated growth.

Posted by Peter Roe at '09:46' - Tagged: mobile   payments  

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Wednesday 21 September 2016

Eagle Eye: New CEO aims for 'better, bigger, faster'

Eagle Eye logoEagle Eye pre-empted its financial year results in a trading update early in June - see Eagle Eye revenue lower than expected – so there are few surprises. The SaaS technology company, which validates and redeems digital promotions in real-time for the grocery, retail and hospitality industries, was spot on with its full year revenue prediction; £6.5m, representing growth of 33%. The core digital marketing platform – AIR – represented the bulk of revenues (72%) at £4.6m after growth of 70%. Boosting growth in the year was the addition of Sainsbury’s as a client in the UK (see Eagle Eye soars in on Sainsbury’s), meaning that, with Asda already on board, its clients have a 30% share of the UK grocery market. The company also had its first Tier 1 overseas grocery win with Canada’s largest retailer.

But, as we previously highlighted, revenue growth was below expectations. And as a result adjusted EBITDA losses deepened from £1.5m to £1.8m. Eagle Eye is investing for planned strategy activity; its average headcount increased from 50 to 73 in the year, and investment in product development also continues, for example in its digital wallet capability. Eagle Eye also appointed a new Sales Director to help ensure it can meet future revenue expectations. The challenge has been coping with the timing of the deployment of significant contracts and the impact of those delays on driving FMCG brand campaigns through those clients (see Eagle Eye and the 'curse' of large deals).

The outlook is positive. The momentum achieved going into 2017 has given visibility for the first quarter of the new financial year; growth is expected to be 65%. Interestingly though, there is clearly a belief that Eagle Eye can become “better, bigger, faster”. And linked to that there has been an intriguing change to the Executive team. Phil Blundell, previously CEO, has become Deputy Chief Executive, charged with strengthening operational capability and delivering the international growth strategy. And Tim Mason, previously Non-Executive Chairman, has been appointed CEO. Blundell took Eagle Eye on an exciting journey leading to what he described as a “breakthrough year” in FY14. Now Mason must ensure Eagle Eye can scale effectively to take advantage of a massive market opportunity.

Posted by Georgina O'Toole at '09:44' - Tagged: results   consumer   saas   software   digitalservices  

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Wednesday 21 September 2016

Dillistone encouraged by H1 performance

LogoDillistone Group, the provider of software to recruitment firms, referenced the volatility of the recruitment sector as one of the challenges in H1. This followed a difficult 2015 when it faced intensified competition so needed to put further investment into the business in terms of product development. Nevertheless, management described H1 ( to June 30 2016) as “encouraging”.

Revenue did pick up by 2% to £4.8m, with recurring revenue accounting for a reassuring 77%. However, as previously indicated, PBT was down year on year to £538m vs. £566m, despite a 3% increase in after tax profit.  

The Dillistone Systems segment was the problem area as it continued on its turnaround, resulting in lower revenue and profit in H1 although management is confident that it will deliver growth over the full year and business for FileFinder Anywhere is picking up. The Voyager Software segment fared better with revenue up 6% and profit up 5%, aided by the year-old Infinity SaaS solution.

Recruitment companies like SThree, Harvey Nash and PageGroup are citing Brexit as a reason for a slowdown in their business, so the fallout would be expected to hit Dillistone but its challenges reach back beyond the vote. The full year results should give a better indication of the extent to which the problems are being resolved.

Posted by Angela Eager at '09:44' - Tagged: results   recruitment   software  

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Wednesday 21 September 2016

Capita wins £70m customer management deal with Three

lCapita’s new customer management (CM) win with Three, points to the UK SITS market leader being now the 'go-to-player' for outsourced CM services for mobile operators in the UK.

Capita is preferred bidder on a new £70m seven-year CM deal with Three, that will see 450 people from its contact centre in Glasgow, transfer in customer service, sales and operational management roles. Capita has committed to retaining services in Glasgow.

Three is one of multiple UK mobile operators and broadband providers (including Vodafone and BT following its EE acquisition) fighting to bring high spending 3G/4G customers onto their networks. Improving customer service is seen as a key area of differentiation, one that helps them avoid competing on price alone.

Capita has invested heavily in CM for the mobile space via its largest £1.2bn deal with O2 (see here). This has clearly given it the scale and capability to go after additional mobile operator CM opportunities, like Three, and its £140m award with Tesco Mobile signed back in June (see here). Capita also provides CM services to Carphone Warehouse Talkmobile (see here).

Capita is making use of innovative technology, via partnerships and acquisitions, to transform these outsourced CM operations. Last March, it acquired Sheffield-based Voice Marketing Ltd (Voice), which provides outbound marketing and sales to the telecoms, retail and utilities sectors. Voice apparently employs 500 people and uses technology like call recording, real-time data and list management and predictive analytics.

Analytics on customer data is key to transforming customer management across multiple channels. Turning intelligence on customer data into actionable insights, is the key to driving process change that can lead to additional business outcomes like new sales, business opportunities or improved customer experience - taking CM outsourcing way beyond a pure cost reduction play (see Why is Customer Experience key to future BPS delivery?).

Posted by John O'Brien at '09:09' - Tagged: contract   customermanagement  

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Wednesday 21 September 2016

Adobe: rising on its content and data assets

LogoThe most powerful comments from Adobe CEO Shantanu Narayen during the Q3 earnings call were about the combined power of technology and data. Those who attended our TechMarketView event earlier this month will know we think data owners are in the ascendancy if they can combine their data with advanced analytics capabilities (and market reach). Looking at its Q3 results, Adobe is doing exactly that.

In another record revenue quarter (and a run of 10 quarters of growth) the company delivered revenue up 20% to $1.46bn, producing net profit up 54% to $271m. Of the total revenue, subscriptions accounted for $1.2bn and recurring revenue is an impressive 83% of the total.  

In his commentary, Narayen noted that “Today, every company is under pressure to be more connected and in tune with its customers, to know their history, their preferences and to create and deliver powerful, personalized experiences to them anywhere they go. Content and data are at the core of these exceptional experiences.” It certainly has the content and with its Marketing Cloud and the power of machine learning-fed analytics it has the data. With 10% revenue growth to $404m Marketing Cloud is still developing and in our view the ability to use assets from the Creative Cloud is an important factor in that growth, so its future prospects are good too.

As for Creative Cloud, it is still accelerating, with revenue up 39% to $803m, but the smaller although complementary Document Cloud is also coming along. Together they took the Digital Media segment to $990m with annualised recurring revenue of $3.7bn, a QoQ increase of $285m.

In marked contrast to the poor reaction to its Q2 results, Q3 (to Sept 2 2016) and indications of a strong Q4 went down well with the market, sending shares higher in after market trading. Adobe has had a ‘non linear’ journey to the cloud model but it looks like it has cracked it.  

Posted by Angela Eager at '08:59' - Tagged: results   software   machinelearning  

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Wednesday 21 September 2016

Misys makes a PaaS at the banks

logoAt its annual gathering of customers and partners yesterday, Misys launched its new Platform-as-a Service strategy to open up its core platforms to third parties. The FusionFabric.cloud PaaS solution offers faster innovation as banks look to accelerate their rate of change. Misys will be looking to build share of wallet, particularly within the larger banks where the problems of legacy and obsolescence are most acute.

FusionFabric.cloud opens up the Misys suite of applications via APIs and enables other developers (banks, FinTechs, etc) to write new applications on top. The applications will run in the Cloud and a new App Store will enable the new applications to be sold to other organisations. HPE is the principal infrastructure partner. We would also expect Misys to build a larger developer and partner ecosystem to support this initiative.

Although many large banks have been talking about cloud services for a long time, the actual level of cloud utilisation is still fairly low. We believe that this will change more rapidly and Misys’s PaaS and other similar offerings could be influential in driving faster adoption. One of the key uncertainties in introducing innovative services in a larger bank is how they will work in scale with all the other systems across the bank. The use of Platform-as-a-Service systems should do much to allay CTO concerns.

There are lots of opportunities out there in terms of the faster introduction of customer-facing apps in retail situations and also in the accelerated implementation of automation and machine learning in back and middle office processes. The acceleration process will take time and much needs to be done to solve the banks’ problems, but this is an interesting step forward.

Subscribers can read our recent report on the Banking Software market, here.

Posted by Peter Roe at '08:37' - Tagged: cloud   software   PaaS   banking  

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Wednesday 21 September 2016

Eg solutions revenue dives in H1

lFirst half results from back office optimisation software provider eg Solutions show the extent of problems faced, leading up to the recent management resignations (see here and work back).

Revenues for the six months ended 30 June slumped 31% to £2.5m, and break-even last time at the adjusted EBITDA level was turned into a -£890k loss (before all the nasty bits like restructuring). Net cash meanwhile almost halved to £1.7m.

The numbers have been hit by the recent management changes, and restructuring, which apparently is now ‘almost complete’. Fortunately, a concerted focus on sales is making some headway, with new deals in the UK with a closed life assurance funds provider, a UK BPO player and a European investment bank. There’s progress via its US partner Aspect Software, with three new deals in the period. This has helped the four-year order book rise to £16.2m vs. £15.5m.

In our view, Eg’s technology should be in demand to help large enterprises manage and transform their legacy back office business processes. But it lacks some of the innovation driving growth for players like Evaluagent (see our recent company Snapshot here) with its focus on employee experience. 

It will however be an uphill struggle to achieve its medium target of growing revenues to £12m in the next two years. That would effectively mean doubling in size – not something feasible at current course and speed without eg embarking on M&A. With the right management, sales and investment in place, eg stands a good chance of turning things around.

Posted by John O'Brien at '08:21' - Tagged: results   bpm   backoffice  

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Tuesday 20 September 2016

Sopra Steria adds Sybenetix to compliance arsenal

logologo2Sopra Steria has announced a new partnership with London-headquartered Sybenetix to strengthen its position in the important and growing market for regulatory compliance systems in the financial services sector. Sybenetix is a provider of specialist behavioural analysis systems which can drive sophisticated monitoring systems to provide more accurate and predictive compliance processes.

Regulatory compliance is a significant and necessary burden for market participants. Companies will strive not only for the most cost-effective approach, but also to ensure the most accurate systems to minimise potential reputational and financial risk. The use of sophisticated analytics can identify potential market abuse and non-compliance, also providing clear audit trails to support high quality reporting to the authorities. By enabling these systems over cloud architectures, peak workloads can be resourced cost-effectively while providing consistent service levels and the data can be made available enterprise wide to support group-level reporting and compliance processes.

In April, Sopra Steria won a landmark deal with the Financial Conduct Authority (FCA) to supply a regulatory market data processing platform to monitor compliance with MiFID 2, see here. This established Sopra Steria as a leading supplier of state-of-the art compliance systems, supplying the largest European regulator with a cloud-based, real-time system to support one of the most complex and demanding regulatory regimes. The deal also represented a major revitalisation of a long-established supplier-customer relationship, as well as an important new use case for cloud services in the regulatory area.

The new partnership with the innovative Sybenetix takes Sopra Steria a significant further step forward in this specialist market and should open up new opportunities for wider cloud-based deployments as companies address their infrastructure services requirements.

Posted by Peter Roe at '11:56' - Tagged: cloud   big+data   compliance   regulation  

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Tuesday 20 September 2016

Hostmaker beds down further funding

logoLondon-based – but increasingly international – Airbnb homestay management startup, Hostmaker, has raised a further £850k in a funding round led by Initial Capital and existing investors DN Capital and DSG Consumer Partners. This is about half the amount previously raised last November (see Investors bed down with Airbnb play, Hostmaker), which suggests either things are going swimmingly well and they just need the odd top-up, or that investors are getting a tad cautious.

Hostmaker has tuned the pricing of its homestay management services since last we wrote about them, uplifting the fee for their housekeeping and linen service to £80 for a 2-bedroom abode, but seemingly reducing the starting price for their full managed service from 20% to 12% per booking (I did say 20% was a bit rich). There’s also a new option for property owners to get a fixed monthly income for a set monthly fee. This rings all my warning bells as Hostmaker is in effect taking the risk on occupancy levels and market pricing, and that can easily go horribly wrong.

Hostmaker now operates in London, Barcelona, Paris and Rome and, according to its website, ‘supports’ 567 homes (latest press release says 1,000 – what’s the real figure, guys?), generating a tad over £6m of host (I assume gross) income. Even if they were getting the original 20% commission, that’s just a little over £1m in net revenue, so I can’t see them breaking even any time soon, as Hostmaker founder Nakul Sharma previously mooted.

Anyway, good ‘idea’ in principle – but not without a sound business model, and I don’t think they’ve got that yet.

Posted by Anthony Miller at '11:38' - Tagged: funding   startup  

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Tuesday 20 September 2016

*New Research*: Oracle and Salesforce stock up on AI/machine learning

LogoThis week has been a feast for machine learning and AI watchers as Oracle and Salesforce fought to take prime position on the menu, and Microsoft Research chipped in with news of its Hanover project.

logoFirst there was Salesforce’s Einstein announcement on the eve of Oracle’s major OpenWorld conference. Then Oracle joined in with a host of AI and machine learning demos and announcements, from its chatbot platform to Adaptive Intelligence Applications. And Microsoft Research reminded us of the big jobs machine learning can be applied to.

The key takeaway - these advanced techniques are becoming mainstream so suppliers need to be on board with this disruptive wave. Subscribers can read our analysis of the activity from the week in HotViewsExtra, here

Posted by Angela Eager at '10:25' - Tagged: software   AI   machinelearning  

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Tuesday 20 September 2016

SaaS balance not yet right at Kalibrate

lAIM-listed Kalibrate Technologies, which provides ‘strategy and technology services to the global fuel and convenience retail industry’, has delivered a better revenue performance in the full year, following an unimpressive first half (see Tricky period for Kalibrate as revenue mix changes).

Revenue for the year ended 30th June, grew 7% yoy to $34.9m, up from 2% in H1. Underlying operating profits however fell 19% to $2.6m due to higher R&D costs, including investments in its Kalibrate Cloud platform. Annualised recurring revenues were up $2m yoy to $23m showing that the business is making some progress in its strategy to achieve ‘sustainable’ long-term revenues.

It’s a mixed picture on that front though. In the year, Kalibrate managed to migrate 10 perpetual license clients to its SaaS platform. However, this is going to be a slow transition, as its largest deals in the year, like a $1.9m contract with a US national fuel retailer, were traditional license contracts.

Plans are afoot to expand in emerging markets like India, Asia and Africa, where it sees new opportunities following deregulation. In theory it should be easier to take new clients straight to SaaS, although it pointed out that the sales cycles are longer in these markets. So it’s likely the cost of sale will rise, putting further pressure on the bottom line.

More encouraging is Kalibrate’s ‘data-led’ planning division, which saw growth of 15% to $12.7m. This provides market and demand analysis, capital investment scenario analysis, forecast changes in demand and rapid competition assessment. It makes use of the data gathered from traffic counts, demographic, retail volume to create study models for its clients. A growing opportunity is to package this insight into separate analytic offerings that clients purchase on a recurring basis. 

Posted by John O'Brien at '09:27' - Tagged: results   saas  

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Tuesday 20 September 2016

Rebranded Blancco sees security software revenue up 49%

Blanco FY16 resultsThe narrowing of focus on security software at AIM listed Blancco Technology Group (formerly Regenersis) is reaping dividends for the company, helping grow its FY16 revenue 49% (35% organically) to £22.4m and reduce its operating loss from £1.6m in FY15 to £400k.

Blancco sold its Repair Services Business to CTDI Repair Services for £80m in March. The bulk of its sales (£21.7m) now come from data centre and device data erasure products that wipe information from end of life equipment such as PCs and servers, as well as mobile devices, to ensure compliance with corporate security policies and national data protection regulation.

That software is sold through a large network of resellers, software partners and service providers with Blancco having implemented a global channel partner program in 2016. It also developed a data erasure API that can be embedded into systems management software such as Microsoft Systems Center and IBM Tivoli which it hopes will drive more sales.

The mobile diagnostics arm of Blancco’s business based on the SmartChk platform acquired from Xcaliber in March contributed £700k turnover, but represents a largely untapped market of global mobile network operators (MNOs) which Blancco has an opportunity to exploit after winning a contract with US carrier AT&T.

Around 40% of Blancco’s revenue comes from North America, a third from Europe and the remainder from the rest of the world. The business grew less in Europe (up 8% in FY16) however after Blancco moved much of its management team stateside and focussed its resources on the US market.

This is a situation the company promises to address by strengthening its European sales in 2017, important if it is to maintain good momentum and mine continuing demand for data security technology amongst UK businesses.

Posted by Martin Courtney at '09:26' - Tagged: results   security   Blancco  

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Tuesday 20 September 2016

Narrow margins blot Bango's copybook

LogoFor the half year to the end of June, Bango, the Direct Carrier Billing (DCB) specialist, delivered a copybook performance at the revenue line. End User Spend through their DCB platform was up 150% year-on-year, with the annualised run rate up 250% on June 2015. EBITDA losses were down from £1.82m to £1.64m.

As we discussed in Bango building scale in two directions the growth has several sources. The acquisition of BillToMobile, the US carrier billing business added two-fifths of this increased run rate, with a big input from Google Play. Organic growth played a major part with the broad launch of Google Play relationships and an expanded agreement with Microsoft for Windows 10 devices and a stronger performance from Asia.

The company's ability to deal with this rapid growth is also a clear endorsement of management statements that their systems are scalable and this should give confidence about coping with future activity levels.

The one blot on the horizon is at the gross margin level, which we have highlighted several times before. The latest growth in business has dragged the margin below the bottom end of Bango's targeted range. As relationships with the big App Stores grow, so will pressure on the margin available to Bango. This appears to be an inevitable consequence of Bango's position.

Looking ahead, we can see continued high rates of volume growth, helped by innovations such as Pokemon Go and a wider range of partnerships such as that recently signed with Danal Co. in Korea and China.

Management are reiterating their belief that they can drive to profitability with existing resources, which will come as a relief to their patient shareholders, but no time scale for the move into the black has been given. If margins continue to be pressured, shareholders will have to be patient a while longer.

Posted by Peter Roe at '09:05' - Tagged: media   financialservices   mobile   payments  

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Tuesday 20 September 2016

Access scoops up LBB Mobizio

LogoWhen we wrote about mobile workforce management provider Mobizio, who helps digitise processes and provide digital care plans in the home care market, in our April 2015 ‘Sixth Sense’ Little British Battler report we said one of its opportunities was acquisition by another software vendor. And so it is – today mid market business application provider Access Group announced it has acquired the company for an undisclosed sum.

We view Access as a quiet powerhouse because of its proven ability to deliver strong organic as well as acquisition-led growth on the back of a strategy based on colonising niche vertical markets via select acquisitions. Acquisitions became easier following its majority acquisition by PE firm TA Associates in January 2015 but it had been active prior to the investment, including setting up a Health and Social Care division following its own acquisition of CareBlox in mid 2014 and prior to that PeoplePlanner.

Mobizio will slot neatly into the division and with digital care plans and the ability to connect field workers with office-based co-ordinators becoming more important in the home care market, there is scope for growth. There is also scope to apply Mobizio’s technology to other services verticals. When we spoke to Mobizio last year, management had thoughts of health and social care, housing, plus verticals like Field Services, Construction and Utilities. As the technology is suitable for markets with large field forces, Access has the option of applying the technology in adjacent sectors making this a potentially versatile little purchase. 

Posted by Angela Eager at '08:32' - Tagged: acquisition   software   healthcare   lbb  

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Monday 19 September 2016

DueCourse borrows to lend!

logoIt’s a different tilt at the SME invoice financing market, lending against the receivable rather than buying it. Such is the business model of Manchester-based DueCourse (neat name), which has just raised £5m of debt along with £1.25m of seed equity funding from a syndicate including GFC (the venture arm of Rocket Internet), and various tech entrepreneurs.

Founded in 2014, DueCourse advances small businesses cash against 90% of invoices value between £50 to £20k for a daily rate of between 7p to £29.86 respectively (sorry, folks, you’ll have to work out the APR yourselves – my brain hurts). There’s no subscription fee or contract and the borrower can pay back the advance (plus fees, of course) at any time.

This is a different model to that of London-based MarketInvoice, a peer-to-peer platform through which institutions and sophisticated private investors are matched to SMEs with invoices to finance. MarketInvoice has raised ~£25m in several funding rounds, most recently in July (see Investors finance another £7.2m for MarketInvoice).

I guess the irony is that there are a growing number of platforms that make it simple for SMEs to finance their invoices, but it is therefore becoming increasingly complicated for SMEs to work out which is the best deal for them. Cue CompareInvoiceFinancing.com (meerkats need not apply)!

Posted by Anthony Miller at '13:47' - Tagged: funding   startup  

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Monday 19 September 2016

*New Research* Mastek: Digital is everything

Mastek logoIn April we reported on Mastek’s FY results – see Mastek still struggling. In Q4, the company’s revenues went into reverse gear (to end 31st March) with a 10% decline. FY revenues totalled Rs5.3b or c£53m.

We recently met with Mastek's UK Head of Public Sector, Prahlad Koti, to delve into the detail behind the numbers. In UKHotViewsExtra (Mastek UK: Digital is everything), TechMarketView subscribers can learn more about the company's UK performance, its focus on all things digital, and its success in winning direct business in the UK public sector market.

If you are not yet a subscriber, please contact Deb Seth to find out more. If you are a subscriber, then you can get your hands on the analysis now - see here.

Posted by Georgina O'Toole at '13:34' - Tagged: results   public+sector   offshore   agile   digitalservices  

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Monday 19 September 2016

Capita aims to transform Adult Social Services with ChooseCare launch

Capita logoCapita is hoping to transform the way that adult social care services are provisioned - and in time some healthcare services – with the launch of its ChooseCare platform this summer. ChooseCare is a business unit in its own right at Capita, nestled amongst other digital health services in the Local Government, Health and Property division. The team has worked agilely to co-develop the ChooseCare platform over the last year with Capita’s flagship local authority partner Barnet Council.

The platform combines Amazon-like functionality for the procurement of Health & Care services with PayPal-like functionality that enables ‘consumers’ and their families to buy the services they need using Direct Payment funding from their local authority, or, in due course, with Personal Health Budgets or self-funding. ChooseCare is now being piloted by two different local authorities and Capita is in advanced discussions with a number of others with a view to full market availability in 2017.

TechMarketView subscription clients can read the full story, and more on how ChooseCare fits with evolving market trends and the supplier landscape, in today’s UKHotViewsExtra article: Capita launches ChooseCare to transform adult social services.

If you’re not yet a fully paid up subscriber and you’d like details of our latest subscription packages please email Deborah Seth in our Client Services team.

Posted by Tola Sargeant at '11:37' - Tagged: software   product+announcement   socialcare   healthcare  

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Monday 19 September 2016

Maintel H1 revenue up 54%

MaintelAIM-listed UK systems integrator and managed services provider Maintel is going from strength to strength as it meets growing enterprise demand for hosted cloud and unified communications as a service (UCaaS) services.

Revenue grew 54% yoy to £38.1m in the first half of 2016, bouyed by £15.4m of turnover from the Azzurri Communications acquisition, completed in May. Adjusted pre-tax profits also grew 17% to £3.9m.

Crucially the £48.5m buyout of the ailing UK communications service provider has helped Maintel accelerate its shift into managed cloud. UCaaS and mobile services. It also eliminated a rival and expanded Maintel’s customer base of SMEs and public sector organisations, with the provider having secured a place on the G-Cloud 7 Framework in late 2015.

Around half of Maintel’s business is done through the reseller channel, and the specialist partner services program created in January also appears to have helped boost sales. Maintel said it had closed a number of large customer contracts during the six month period, including UK charity Victim Support and NFU Mutual, with recurring contracted revenue now making up 75% of the total compared to 71% a year ago.

With a strong order book and full “pipeline of opportunities” the company believes it is on track to deliver FY16 profit performance in line with market expectations and we see no reason to suggest it will fall short.

Posted by Martin Courtney at '09:58' - Tagged: results   Maintel  

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Monday 19 September 2016

Adgorithms looking to Albert to reposition the business

LogoIt has been another tough period for online advertising software provider Adgorithms as the effects of disruption in its core market continue to impact business, resulting in poor H1 results (to June 30). Revenue dropped to $8.7m, from $12.3m, while adjusted EBITDA loss was $2.6m. At the same time there was a huge hike in adjusted operating expenses, which rose to 56% of total revenue vs. 13% in the year ago quarter. This follows a challenging FY15 (see here).

The company, who held its IPO in June 2015 and styles itself as a provider of AI marketing, is spending its way out of a changing online advertising market, while also orchestrating a shift in its revenue base - made necessary due to changes in how online advertising exchanges operate. In a nutshell, advertising exchange volumes plummeted as operators worked to reduce inventory fraud; while simultaneously media buyers and advertising reviewed their online media budgets, which included looking for more transparency and accountability.  That caused problems for Adgorithms who generates most of its revenue from buying underpriced inventory, aggregating it and selling it to those seeking advertising space.

Its response is to pivot the business from this indirect model to a direct model based on Albert -  its SaaS software that uses AI and machine learning (rather than a programmatic approach as used by Adobe Marketing for example) to draw correlations from aggregated data so advertisers can see which ads/channel etc combinations are likely to be most effective. But it is early days and this part of the business is small. It is also setting up operations in the US - the CEO and CFO have relocated and a 13 strong sales and marketing team has been recruited – which has contributed to the higher operating costs.

Forced to change by external events, it is a testing and costly time for the business. Albert has prospects but is still such a youngster. 

Posted by Angela Eager at '09:51' - Tagged: results   software   AI   machinelearning  

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Monday 19 September 2016

Atos gets gold star from Cabinet Office

Atos logoThere couldn’t have been a better result for Atos. The results of a Cabinet Office review into the company’s largest Whitehall contracts will be a big boost for the company. The review, which was launched by the Public Accounts Committee (PAC) following failings on Atos’ General Practice Extraction Service (GP-ES), has found that all 12 major contracts examined were “performing within the normal operational parameters of large technology outsource contracts”. More specifically, it found that ten of the 12 contracts met more than 90% of their key performance indicators over the twelve months to June; the other two have been placed under review. There was also no evidence of any “sharp commercial practice” or of Atos making profits out of line with the marketplace.

But the finding that will do the most to boost the firm’s reputation is that, on some contracts, Atos was working “at risk and beyond their contractual obligations to act in the clients’ interests”. That’s one big gold star for Atos. And we are aware of many other leading suppliers doing the same.

At a time when the Cabinet Office and Whitehall departments seem to be increasingly accepting of the need to work with the large SIs/outsourcers like Atos et al, this will help to validate the opinion of many i.e. that Government needs to work with a mixed economy of large and small suppliers if it is to succeed wits its ICT and broader transformation objectives.

Posted by Georgina O'Toole at '09:46' - Tagged: public+sector   centralgovernment   outsourcing   SI  

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Monday 19 September 2016

NetDimensions revenue hit by cloud transition

logoHalf-year revenues from NetDimensions, the AIM-listed provider of performance, knowledge and learning management systems came in at US$10.5m, actually down on the previous year (by the smallest fraction from US$10.6m). This compares with 12% growth in the last financial year (see here) and 16% in the first half of 2015.

In NetDimension’s particular version of the cloud transition saga, the big problem is the reduction of support and maintenance revenue as clients migrate from perpetual licences to either SaaS or multi-year, on-premise licences. NetDimensions also suffered from delays in larger contracts, cutting professional services revenue and shifting SaaS revenue to the right.

In a rather downbeat statement, there are some positives. Active user numbers rose 10% to 4.2m and 17 new clients were added. Licence revenue, including SaaS deals was up by 8% (to US$6.8m) and gross margins rose to 85% (from 81%). Tight control of costs drove lower EBITDA losses (to US$0.8m, down from US$1.8m). Cash balances total US$11.2m, with cash generation in the half of US$0.2m.

The North American operation (48% or revenue) appears to be the biggest culprit. Losses here, while down a quarter, still came in at US$0.8m. EMEA reduced losses by US$1.2m, to US$43k. A US$0.2m write-off added to the US woes, but clears the slate somewhat for future trading.

There is certainly growth in NetDimension’s target markets but they are crowded and competitive and a greater concentration on key industry verticals makes sense. Analysts are now forecasting the move to profit sometime in 2017. The necessary adjustment to NetDimensions’ revenue is being made (and the shares have almost halved in consequence) and the management will now be looking to drive profitable, SaaS-based growth from this new base and from the move to larger contracts.

Posted by Peter Roe at '09:31' - Tagged: saas   software  

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Monday 19 September 2016

Agilisys launches Community Cloud

Agilisys logoThis morning, Agilisys is launching the Agilisys Community Cloud. The company, which earns the majority of its revenues from IT and business process services contracts in the UK local government market, already has more than 30 customers on its own secure PSN compliant Public Sector Cloud infrastructure. The new offering goes another step and will assemble a “community of infrastructure providers”. Customers will be able to choose a hybrid cloud solution combining Agilisys’ own secure platform with “hyper-scale” infrastructures” from partners. The first partner to join the Community is Microsoft, with its Azure public cloud. Agilisys also brings its established platform and migration approach to the table.

Last week, we sat on a panel debate at TechUK entitled Navigating the Local Government Market – Opportunities and Challenges. One of the key messages we gave was that local government has been the slowest of the public sector subsectors to adopt cloud services. This is evident from numerous surveys as well as from the low usage stats for the G-Cloud framework for local authorities. One of the other panellists on the debate was Nadira Hussain, Head of ICT at the London Borough of Tower Hamlets. She made clear that one of the biggest barriers to cloud migration in local government was the upfront investment required; she said it was very hard to form a business case for moving away from local datacentres. Interesting, then, that Agilisys’ CEO Steven Beard highlights that its Agilisys Community Cloud offers a cost effective migration path: “clear pricing and no upfront costs”. We have often argued that suppliers need to be proactive in offering attractive commercial terms to encourage clients and prospects to accelerate their cloud & digital transitions.  It will be interesting to see if Agilisys has got it right. We will be talking to the Agilisys team behind Community Cloud later this morning and will bring you more then.

Posted by Georgina O'Toole at '09:30' - Tagged: public+sector   localgovernment   iaas   hybridcloud   cloudservices   cloudmigration  

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Monday 19 September 2016

Instem grows 21% in exciting H1

Instem logoInstem’s first half, to end of June 2016, was a particularly exciting period for the provider of IT solutions to the global early development healthcare market. The AIM-listed SME raised £5m before expenses through a share placing in February (see here); acquired Samarind in May (see here); and then negotiated a significant agreement with recently merged clients CRL and WIL Research (see here).

As presaged in August’s trading update, organic growth in the period remained strong driven by the buoyant early drug development market and the introduction of new regulatory requirements known as SEND. Today’s interim results reveal that first half revenue increased by 21% to £9.1m – of which recurring revenues were £5.3m, up 6% - and EBITDA increased by 34% to £1.2m. However, PBT declined to £0.1m (from £0.3m in H1 last year) as the business invested in staff and facilities to address the future SEND opportunity.

The outlook for Instem looks equally healthy. The overall drug development market remains strong with growth in the number of early stage drug candidates. And September’s acquisition of Notocord (see here), coupled with the earlier purchase of Samarind, adds to the strong new business pipeline for 2016 and 2017.

Posted by Tola Sargeant at '09:06' - Tagged: results   software   pharma  

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Monday 19 September 2016

* New Research* Trends and Drivers in the UK Network Connectivity and Services Market

In the rush to optimise their application and service delivery UK organisations cannot afford to overlook the single most important enabling element in the entire ecosystem: the underlying network infrastructure which binds the new cloud-connected world of fixed and mobile devices together.

As such we don't think that ongoing demand for LAN, WAN, WiFi and cellular connectivity upgrades, management and implementation advice is in any doubt - enough by volume to keep SITS suppliers, network service providers and mobile operators equally busy anyway.

But whilst it can be struggle to make big profits from bandwidth alone as competition, price pressure and regulation takes its toll, the network can still be a conduit to greater gains elsewhere, particularly when it comes to upselling value added services around cloud hosting, data security and next generation unified communications.

TechMarketView launched a new research stream, SecureConnectViews, which analyses the increasingly close integration between supplier networking, cloud and data security portfolios, earlier this year.

Our latest report – Trends and Drivers in the UK Network Connectivity and Services Market – explores these themes and identifies areas of the market that offer the best opportunities for suppliers looking to provision network services to public and private sector organisations. It is available for subscribers to download here.

Posted by Martin Courtney at '09:04' - Tagged: cloud   network+services   security  

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Monday 19 September 2016

Infosys pre-warns; EVP exits

logoMore woes at Bangalore-based, top-tier Indian pure-play (IPP), Infosys. At an investor conference last week, CEO Dr Vishal Sikka all but pre-announced that they will likely be reducing FY guidance again when the company reports its Q2 results in October. If so, this will be the second successive quarter that management had reduced guidance (see Infosys ‘miss’ and lower outlook spooks investors), and was widely expected after the UK’s Royal Bank of Scotland (RBS) ditched plans to separate subsidiary Williams & Glyn’s IT platform (see Williams & Glyn fall out hits Infosys).

Sikka also attributed the latest pre-warning to a $22m shortfall in its Consulting business as a result of ‘execution reasons’, leading to the exit of Sanjay Purohit, Infosys Executive Vice President and Global head of its consulting business, a role he took up in April 2015 after establishing Infosys’ EdgeVerve ‘digital business’ unit. Purohit joined Infosys in 2000 and is the seventh top exec to leave Infosys since Sikka took the reins just over two years ago, a period which has also seen roughly twice that number of ex-SAP (Sikka’s alma mater) execs joining the Infosys management ranks.

Infosys is now the third IPP to warn about a business slowdown, following market leader TCS (see TCS ‘losing momentum’) and mid-tier Mindtree (see Mindtree’s Bluefin dives into red). If you want to understand the background – and for that matter the foreground too – then you’d better read the latest issue of TechMarketView OffshoreViews.

Posted by Anthony Miller at '08:05' - Tagged: offshore   warning   management  

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Monday 19 September 2016

WILL YOU BE OUR 100th LITTLE BRITISH BATTLER?

We are extremely proud to announce that the next Little British Battler logoTechMarketView Little British Battler event will see the one-hundredth company be widely recognised as a UK tech SME punching above its weight in local and international markets.

Since we launched the programme back in January 2012, many Little British Battlers have gone to greater things, both independently – some with new sources of external finance – and others as part of larger tech businesses. We like to think that the Little British Battler ‘brand’ helped them along the way.

We’ll be holding our ninth Little British Battler Day (LBB9) in London on Tuesday 15th November 2016.

TechMarketView’s theme for 2016 is ‘Surfing the Waves of Disruption’ – and there is no better time for SMEs to disrupt the market. We want to meet the disruptors!

Founders, CEOs and board executives from twelve outstanding, disruptive companies will be selected to participate. They will share their aspirations, ambitions and challenges in closed session with TechMarketView research directors and senior partners from our sponsors, MXC Capital, London’s technology merchant bank.

In return they will get invaluable opinion and advice on their business plans and extensive coverage in TechMarketView UKHotViews, the leading daily source of opinion and comment on the UK tech scene. UKHotViews reaches tens of thousands of senior executives and professionals in the tech industry, government, enterprise, investment community and the media. Coverage in UKHotViews has brought many exciting, little-known UK tech SMEs to the attention of the market.

LBB9 is open to independent, privately held, UK-owned tech companies with established clients and annualised revenues under £20m. Publicly quoted companies and subsidiaries of private or public companies are ineligible.

To register your application for LBB9, please complete the web-based Pre-Qualification Form by clicking here. There is no charge to apply or to participate.

Applications must be submitted by Friday 7th October.

We will advise whether or not you have been selected to participate by 28th October. If you were unsuccessful last time and believe your company is a ‘disruptor’, then please feel free to apply again.

Contact our LBB coordinator for further information.

Posted by HotViews Editor at '00:00'

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