HotViews Archive

Skip Navigation Links.
Collapse 2019 (36)2019 (36)
Collapse August (36)August (36)
Corero revenue dips 16% in tandem with Juniper slump
16 Aug 2019
Germany’s Heycar declares war on UK used car market
16 Aug 2019
A Level results
16 Aug 2019
*UKHotViewsExtra* Capital markets is key for Evans and DXC Technology
16 Aug 2019
YPO launches £400m data centre and cloud framework
15 Aug 2019
*UKHotViewsExtra* Boris, tech & short-termism
15 Aug 2019
VMware looking to acquire Pivotal
15 Aug 2019
Gravity banks in the cloud with Finastra
15 Aug 2019
BAE Systems supports RAF Typhoon mission planning
15 Aug 2019
RBS bailout fund awards £40m in new grants
15 Aug 2019
Cisco outlook suggests sluggish year ahead
15 Aug 2019
H1 results reveal difficult times for TechFinancials
15 Aug 2019
Flatfair raises dosh for controversial ‘no-deposit’ tenancy
15 Aug 2019
New TechMarketView.com coming soon
15 Aug 2019
WeWork files IPO prospectus
14 Aug 2019
Tumbling
14 Aug 2019
*NEW RESEARCH* UK Application Services Supplier Ranking 2019
14 Aug 2019
SCISYS keeps winning
14 Aug 2019
PA Consulting to go under the hammer?
14 Aug 2019
Regulator confirms 18 month delay to payments reforms
14 Aug 2019
Accenture lands major NHS cyber deal
14 Aug 2019
‘Zero revenue’ startup Yoti worth £82m? Excuse me?
14 Aug 2019
SCC’s UK profits rocket
14 Aug 2019
Computacenter buys back RDC business from Arrow
13 Aug 2019
Flat first half but positive EBITDA for Starcom
13 Aug 2019
*NEW RESEARCH* UK Business Process Services Supplier Ranking 2019
13 Aug 2019
Don’t mention the war – Deliveroo exits Germany!
13 Aug 2019
ADI secures NPIF investment for NHS push
13 Aug 2019
An Evening with TechMarketView 2019 - Update!
13 Aug 2019
Advanced: £2bn vote of confidence
12 Aug 2019
DXC's Fovargue to lead Leidos UK
12 Aug 2019
*UKHOTVIEWSEXTRA* helpIT: matching digital data dots
12 Aug 2019
Sonata strikes a flat note
12 Aug 2019
Atos creating NICE CX
12 Aug 2019
Mi-Pay hints at tough times ahead
12 Aug 2019
**NEW RESEARCH** Goodbye Applications, Hello Products – The Changing Face of IT Delivery
12 Aug 2019

UKHotViews©

 

Friday 16 August 2019

Corero revenue dips 16% in tandem with Juniper slump

Corero revenue dips 16% in tandem with Juniper slumpA trading update suggests a difficult first half for AIM-listed cyber security supplier Corero Network Security. Revenue for the six months ending June 2019 is expected to be US$4.2m, down 16% yoy on the US$5m posted in H118, with EBITDA losses widening to US$2m from US1.4m a year before.

Management blamed a lower than expected conversion of opportunities created by the global resale partnership forged with network equipment manufacturer Juniper Networks in 2017 (later strengthened with US$2m of funding). The first revenue generating order from a service provider deploying Corero’s SmartWall distributed denial of service (DDoS) alongside Juniper's MX Series Routers was signed in March last year but momentum appears to have stalled since.

Smartwall is based squarely on hardware appliances, and Corero’s poor first half could be another symptom of customers not committing to on-premise infrastructure deployments due to high equipment costs. Sales of Juniper networking equipment too suffered in the first six months of the current calendar year, with revenue dipping 7% yoy in the first quarter and 8% in Q219.

It would be too simplistic to say that Corero’s fortunes are now inextricably tied to Juniper’s, but we already know that US telecommunications equipment suppliers are being adversely impacted by the US – China trade war (see Cisco outlook suggests sluggish year ahead).

The appointment of a new vice president of worldwide sales in June heralded the injection of new impetus and investment in Corero's sales capabilities for the second half. But like other tech companies it will be hoping it’s not caught up in the fallout from somebody else's argument.

Posted by Martin Courtney at '09:09' - Tagged: tradingupdate   cybersecurity   Corero   DDoS   JuniperNetworks   telecommunications  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Friday 16 August 2019

Germany’s Heycar declares war on UK used car market

At least Heycar has more than 41 used cars for sale, unlike UK-based used car marketplace Hellocar, which crashed and burned a couple of years ago (see Hellocar says Goodbye). London/Berlin based Carspring apparently suffered a similar fate.

Backed by two of Germany’s leading car manufacturers, Volkswagen and Daimler, Berlin-based Heycar has just launched in the UK with (as at time of writing) 100,183 used cars available for sale, from the A to V of brands (as in Abarth to Volvo). Heycar launched in its home market in 2017.

Not that there’s any shortage of car marketplaces in the UK, both online and offline.

UK-based, LSE-listed Auto Trader claims to be ‘the UK’s largest digital automotive marketplace’, with revenues of £355m last year (to 31st March 2019) and a 69% (!) operating margin. Privately held, UK-based ‘bricks and clicks and mortar’ used car dealer Cargiant is rather bigger by sales. Revenues reached £539m in 2017 – the last year for which accounts are available – eking out a gross profit of £60m (11% gross margin) and an operating profit of £41m (8% margin).

Then there are specialists like classic car marketplace Cazana (see Classic-enhanced Cazana motors on with the crowd), and auction-like Motorway (see Motorway drives off with £11m funding round) among many others. And by the way, Daimler is also pitching for a cut of new car sales in the UK, backing loss-making startup Carwow (see Daimler pumps £25m into Carwow’s leaky tank).

In the end if you are buying or selling a used car, you’ll probably check out all the websites (Idea Warning: Opportunity for a used car marketplace aggregator website – comparethebanger.com) and pick the one that suits you best.

By the way, Heycar’s PR talks about the UK used car industry being worth £50b. If two of the largest players can barely muster £1b in revenues between them, where’s the rest coming from?

Posted by Anthony Miller at '08:51' - Tagged: startup   marketplace  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Friday 16 August 2019

A Level results

Encouraging signs but still a long way to go

StudentsFor decades I have been campaigning both for more youngsters to be interested in STEM subjects and more girls to get into IT/computing.

Yesterday’s A Level results showed that real progress was being made.

  • The number of students taking STEM subjects at A Levels has increased by 9% over last 5 years.
  • STEM subjects made up 21% of all A Level entries - up from 19.2% in 2018
  • Maths was the most popular A Level subject with 85,000 entries. Bad news was that this represented a 5.8% fall in the number of entries compared to 2018. Harder GCSEs were blamed.
  • The % of girls taking STEM subjects (50.3%) has overtaken boys for the very first time.
  • The % of girls taking A Level Computing has doubled since 2013 but it is still only 13.3% (1475) of the total. There were just 10400 entries for Computing compared to 737,000 total entries - ie only around 1.4% of all exams sat were in Computing.

All moving in the right direction - but still a long way to go.

The number of students taking A Level Computing is still too low. Although the % of girls taking Computing has increased, it is also still far too low. Same applies for Maths where boys significantly outnumber girls. Being the father of two girls - one who was very interested in Maths and the other in Computing - I really don’t understand the shortfall. Except that in our household both subjects were considered ‘cool’ and they were constantly exposed and interested in all types of technology.

Over recent years there have been great strides in promoting female technology role models. Maybe we are on a longer burner. Ie that interest in STEM starts almost from birth. If the kind of advances we have seen this year can be continued, in 5-10 years time the situation could be significantly improved.

It matters because I happen to believe that the UK’s future - outside or inside the EU - depends on us being a high-skill country taking full advantage of the opportunities that digital presents. I want the UK to be the leading global digital economy and the best place on earth to setup and develop a digital company - providing the very best career opportunities for all our boys AND girls.  

Posted by Richard Holway at '08:07'

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Friday 16 August 2019

*UKHotViewsExtra* Capital markets is key for Evans and DXC Technology

RichEvansI recently returned to the offices of my former employer, DXC Technology, to meet with Rich Evans, the company's newly installed Industry General Manager, Banking and Capital Markets. Evans joined DXC earlier this year and we had previously resolved to catch up properly, having met briefly at the Mike Lawrie hosted, opening of DXC’s new London Innovation Hub in June.

Evans is a capital markets expert with something of a reputation for innovation in electronic trading. He spent nearly 3 years as Head of Equities at Barclays Investment Bank, having started his career at Salomon Brothers in the nineties.

The appointment of Evans reflects the growing importance of the capital markets space to DXC and its ambitions for growth in the sector. Something that is further evidenced by the company’s recent acquisitions of both Fixnetix and Luxoft. TechMarketView clients, including UKHotViews Premium subscribers, can learn more via HotViewsExtra (see: Capital markets is key for Evans and DXC Technology). 

HVP

Posted by Jon C Davies at '07:00' - Tagged: banking   CapitalMarkets  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

YPO launches £400m data centre and cloud framework

YPO logoYPO has announced the launch of its Data Centres, Cloud Hosting and Data Security Solutions framework. The framework is designed to meet the needs of all public sector organisations, which includes YPO’s internal requirements, and has an estimated total value of £400m.

The organisation is owned by 13 local authorities in the north of England. It supplies products and services to a wide range of customers including schools, local authorities, charities, emergency services and the wider public sector and manages over 100 frameworks.

The new framework is now live and runs until 31 July 2023. It is divided into 12 lots: facility maintenance; enterprise hardware management; design; audit and consultancy; cloud, cloud services & hosting; build; managed service; business continuity and disaster workplace recovery; education services; colocation /shared hosting services; data security solutions; and network connectivity services.

In total 29 suppliers have been appointed to the framework, including a large number of SMEs. The full list is as follows: 2bm; Amazon Web Services; CGI; CloudCoCo; Daisy Corporate Services; EHJ & SJ Consultancy; Insight Direct; KCOM; Keysource; Konica Minolta; Powercube; Nigsun; Park Place Technologies; Phoenix Software; Razorblue; Redcentric; Secure I.T. Environments; Shaping Cloud; Six Degrees; SCC; Sudlows; Sungard Availability Services; Pure Technology Group; T-Systems; UKCloud; Venom IT; Workspace Technology; XQ Cyber; and Zsah.

YPO are holding a launch event at its HQ in Wakefield on 24th October 2019 giving buyers an opportunity to engage with all suppliers on the framework in one place on one day.

This will be a key framework for many public sector organisations, especially those in local government and education where YPO is particularly strong, as they look to upgrade their infrastructure and accelerate their cloud ambitions. 

Posted by Dale Peters at '16:15' - Tagged: cloud   infrastructure   datacentre   framework  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

*UKHotViewsExtra* Boris, tech & short-termism

Boris Johnson (Twitter Photo)Since new Prime Minister Boris Johnson took office, much of the emphasis has been on his commitment to leaving the EU by 31st October. The other focus has been on his pledge to ditch austerity and start “delivering on people’s priorities”. Over the last couple of weeks, we have seen a cocktail of announcements, which have led to speculation that Johnson is posturing for a General Election in the autumn. As Shadow party leader Jeremy Corbyn threatens to call a no-confidence vote to try and scupper a ‘No Deal’ Brexit, a General Election later this year is looking like a certainty.

Johnson’s spending commitments are best summed up as electorate pleasers. He has stated he is determined to focus on dealing with issues that have been left on the back burner for the last three years, i.e. since the 2016 Brexit referendum. We have already commented on his £1.8bn NHS pledge (see What does NHS £1.8b funding boost mean for tech?) The other clear focus has been on returning the Conservatives to “the party of law and order” with announcements related to both the police and prison services. Johnson has committed to extend stop and search powers and putting in place 20K new police officers within three years under a £1.1bn plan. He has also promised a £100m prison crackdown to create 10,000 more prison spaces and ensure tougher sentencing. Other notable moves have been the decision to abolish visa caps for the most skilled scientists, engineers and mathematicians and put a fast track process in place. He has also talked about reversing the real-terms cuts to schools.

The spending commitments are, predominantly focused around people and infrastructure. They are designed to have short-term impact and be vote winners. Technology spending commitments have not been front and centre; however… Read More.

If you are not yet a TechMarketView subscriber and would like to read the rest of this article, please contact Deb Seth to find out how you can gain access to this and other behind-the-paywall research.

Posted by Georgina O'Toole at '15:51' - Tagged: health   public+sector   police   policy   government   police   police   police   police   prison  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

VMware looking to acquire Pivotal

VMware logoOvernight it has been confirmed VMware is in discussion with Pivotal about a potential acquisition; both companies are subsidiaries of Dell Technologies. The proposed transaction would see all outstanding shares of Class A common stock of Pivotal acquired for $15.00 per share.

Pivotal logoEMC acquired San Francisco-based Pivotal Labs in 2012. The company was augmented with additional assets from EMC and VMware, most notably Cloud Foundry, before Pivotal was spun out as a separate company in 2013. It became part of Dell Technologies after the merger in 2016 and filed for IPO last year.

It achieved revenue of $657.5m in the year ended 01 February 2019, an increase of 29% year over year, and recorded an operating loss of $146.8m (2018: loss of $168.3m). In the first quarter of the current financial year total revenue was up 19% to $185.7m (2019: $155.7m) but operating losses widened slightly to $34.9m (Q1 2019: loss of $33.5m).

After pricing the IPO at $15.00, Pivotal’s share price peaked at $29.15 in June 2018, but fell 41% after its Q1 2020 announcement in June this year; at close on Wednesday it stood at $8.30. The proposed acquisition at $15.00 per share, an 81% premium on its closing price, saw Pivotal’s share price leap over 70% in extended trading—VMware and Dell Technologies fell slightly on the news.

VMware enhanced its container technology proposition through the acquisitions of Heptio in November 2018 and Bitnami in May 2019. Although VMware already works closely with Pivotal—Pivotal Container Service (PKS), an enterprise Kubernetes platform, was jointly developed by the companies—the acquisition of Pivotal would allow it to further integrate container technology into the business and enhance its cloud services offering.

Posted by Dale Peters at '10:04' - Tagged: acquisition   cloud   infrastructure   containers   Kubernetes  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

Gravity banks in the cloud with Finastra

finastraGlobal financial services provider, Finastra, has announced that it has secured another banking startup as a client for its cloud-based core banking offering. Gravity, a fledgling UK bank, currently seeking authorization, aims to target the SME community with lending, credit card and deposit services.

Gravity has selected Finastra’s Fusion Essence in the cloud for its end-to-end core banking capabilities. The cloud-based solution will support Gravity as it launches in the UK and provide loan and deposit book automation. The news follows the recent announcement that another banking startup, Manchester based, revverbank, had also selected Finastra’s FusionEssence core banking offering (see: revverbank selects Finastra for core banking).

Finastra’s Fusion Essence in the cloud offering is underpinned by Microsoft’s Azure platform. Finastra has a strong relationship with the global technology giant and earlier this year was awarded Microsoft’s “Alliance Global ISV Partner of the Year” (see: Finastra honoured with Microsoft partner accolade).

Finastra, crept into the Top 20 UK financial services SITS suppliers for the first time this year (see: Financial Services SITS Supplier Ranking 2019). The banking and capital markets specialist, formed by the 2017 merger of Misys and D+H, has been in the news a fair bit lately and is continuing to embrace opportunities around Open Banking and the evolving ecosystem of startups and neo-banks.

Posted by Jon C Davies at '09:51' - Tagged: banking  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

BAE Systems supports RAF Typhoon mission planning

BAE Sytems logoFrom a software & IT services (SITS) perspective, it’s far easier to keep track of BAE Systems’ activities in Applied Intelligence (AI – formerly Detica), its business and technology consulting arm, than it is in the core BAE Systems business. However, we don’t ignore this SITS revenue stream; our BAE Systems’ UK SITS revenue estimate takes account of both – see UK SITS Supplier Rankings 2019. Notably, our understanding is that the AI business has next-to-no business in UK defence, with most of the revenue deriving from other areas of the public sector, notably homeland security, and commercial sectors. So, understanding the core BAE business is key to understanding the defence contractor’s increasing foray into defence SITS.

It’s, therefore, always interesting to see contract announcements that highlight this direction of travel. This week we picked up on an article in the Blackpool Gazette pointing to a new digital information system, called Sceptre, developed by BAE Systems’ Mission Planning & Training Services division, described as using “digital and real-world information to streamline mission decisions to ensure success”.  BAE Systems has signed a contract to deliver Sceptre to help the RAF plan, brief, execute and debrief missions on the Typhoon fleet (being developed at Warburton).

BAE Systems is quoted as saying, “we are constantly looking at new ways to exploit technology to develop our products and capabilities”. Also this week, giving another example, BAE Systems has been awarded a contract in the U.S. to develop machine learning capabilities aimed at giving the military a better awareness of space scenarios for the U.S. Defence Advanced Research Projects Agency (DARPA).

The area of ‘Battlefield Information Systems’ has always been the areas of the defence SITS market that has seen the traditional defence contractors (the likes of BAE Systems, Leidos, Lockheed Martin, Raytheon, Thales etc) compete most closely with traditional SITS providers with capabilities in this space (the likes of CGI, Fujitsu, and Atos). The former set have always struggled to manoeuvre into the back office/HQ space; the latter have not been in a position to get into the market for embedded systems on defence platforms (aircrafts, ships etc).

There is increasing emphasis on command and control systems that present information in a simple and actionable format, across a variety of devices (laptops, PCs, tablets), rather than systems embedded within defence platforms. That makes sense as they are easier to modernise and update over time. That might suggest that the market will start to open to a wider variety of ICT suppliers, but our view of the market suggests that those with a strong defence background will always be at an advantage in this sector.

Posted by Georgina O'Toole at '09:22' - Tagged: public+sector   contract   defence   data   datavisualisation  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

RBS bailout fund awards £40m in new grants

BCRThe independent body established to level the playing field in UK financial services, following the bailout of RBS, has distributed a further £40m via its latest awards. Challenger bank, Atom, SME lending platform, iwoca, B2B payment provider, Modulr and cross-border payments specialist Currencycloud have each received £10m from the BCR.

BCR is the independent body established to implement the RBS State Aid Alternative Remedies Package, as a condition of the UK Government’s £45bn bailout of RBS during the financial crisis. BCR is independent from RBS and the UK Government and is governed by an independent board of directors chaired by Godfrey Cromwell.

The funding is the latest in a series of recent awards (see: Challengers boosted £280m BCR injection) and comes from the Capability and Innovation Fund Pool C. The funding pool is responsible for a total of £425m and has the specific aim of boosting competition in the business banking market. As a result of the latest awards, Atom Bank, plans to invest in smart contract technology and machine learning, whilst iwoca and Modulr are set to further expand their operations and create a variety of new jobs in regional centres outside of London.

The ongoing transformation of the UK banking landscape has its origins in the financial crisis that began in 2008. As a result of the UK government propping up two dominant established players, the BCR is now helping to ensure that the new breed of financial services providers can establish themselves effectively against the old guard.

Posted by Jon C Davies at '09:18' - Tagged: funding  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

Cisco outlook suggests sluggish year ahead

Cisco outlook suggests sluggish year aheadCisco’s latest financial statement reveals healthy FY19 growth, but a more subdued Q4 and lukewarm outlook for the next quarter provide some cause for concern.

Full year revenue expanded 7% yoy to US$51.7bn once adjusted for the divestiture of the service provider video software solutions (SPVSS) in the second quarter (growth would have been 5% otherwise), with non-GAAP net income up 9% to US$3.6bn.

Products supplied 75% of the turnover, with services (US$12.9bn, up 2% yoy) accounting for the other 25%. Cisco is still heavily reliant on exports of network switches and routers, security and other appliances for its revenue as well as application license fees and subscriptions. Infrastructure platforms revenue grew 7% yoy to US$30.2bn, security was up 16% to US$2.7bn and applications expanded 15% to US$5.8bn.

There is strong evidence that the US-China trade war is starting to bite and hints that a broader slowdown in spending is underway, trends that will have repercussions not just for Cisco but the entire tech industry. The company’s revenue from Asia Pacific Japan and China region dipped 5% in Q419 (and 4% in Q3) compared to a 1% growth rate over the full year.

Citing early indications of “macro shifts” management outlook for Q120 was just 0-2% growth, leading to a 7.7% fall in the value of Cisco’s stock in after hours trading. That’s a long way from a Q119 performance that saw sales surge 8% yoy, followed by adjusted Q219 and Q319 growth rates of 7% and 6% respectively.

Posted by Martin Courtney at '09:03' - Tagged: resullts   Cisco   networkinfrastructure   securityinfrastructure   FY19  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

H1 results reveal difficult times for TechFinancials

TFAIM-listed, financial trading software provider, TechFinancials, has released interim results revealing another difficult trading period. The unaudited financials for the six months ended 30 June reveal a sharp drop in revenues and a marked increase in operating losses.

H1 group revenue at the British Virgin Islands based FinTech fell by 45% to $2.1m, with revenues from the company’s blockchain trading segment down by 32% to $0.9m. TechFinancials reported an operating loss of $1.1m, up 34% on the same period last year, whilst the company recorded an overall loss of $1.2m compared to a profit of $8.5m in H1 2018.

The performance of TechFinancials has been sporadic for some time and the company has continued to restructure its operations in an effort to improve its fortunes (see: TechFinancials sorts out its portfolio). The latest results included for the first time its 75% subsidiary, blockchain based sports ticketing venture, Footies, which the company has continued to finance via an additional $225k on top of $500k already committed.

TechFinancials remains committed to the potential of distributed ledger technology (DLT) and the company has another established venture, via its relationship with blockchain based diamond exchange, CEDEX (see: Diamond setting for blockchain with TechFinancials). Going forward the company will be hoping to leverage these capabilities to develop new opportunities based on its experience in the blockchain industry.

Posted by Jon C Davies at '08:30' - Tagged: results  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

Flatfair raises dosh for controversial ‘no-deposit’ tenancy

logoWhen is a deposit not a deposit? When it’s a membership fee!

Such is the way London-based Proptech startup Flatfair describes the upfront, non-refundable ‘membership fee’ that it charges tenants in lieu of a traditional deposit when they rent a property through their platform. What’s more, if there is a dispute at the end of the rental and it is determined by Flatfair’s ‘Fair resolution’ service that the tenant owes the landlord money (typically for repairs), then the funds will be taken directly out of the tenant’s bank account! No limit, apparently.

Perhaps not surprisingly, not everybody thinks this is a great idea for renters! An article in The Guardian early this year was pretty scathing about such ‘no deposit’ rental schemes (there are many startups with variations on this theme). I include just one quote from Dan Wilson Craw from Generation Rent. “This is money that you will never see again, whereas with a standard deposit if you take care of the property you should get all that money back.”

Caveats aside, Flatfair has recently closed an $11m Series A funding round led by Index Ventures, with participation from Revolt Ventures, Adevinta, Greg Marsh (founder of Onefinestay), Jeremy Helbsy (former Savills CEO) and Taavet Hinrikus (TransferWise co-founder).

There’s no disputing that traditional tenancy deposits can be onerous for cash-strapped renters. But at least they know how much they’ll be up for if they leave the place in a mess.

Posted by Anthony Miller at '08:10' - Tagged: funding   startup   PropTech  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Thursday 15 August 2019

New TechMarketView.com coming soon

With now only one week to go until the launch of our fully refreshed website we are excited to bring you an enhanced user experience with simplified navigation, easy to use drop-down menus and improved search functionality, across all of your devices. Visitors to the website will be able to:

  • read the latest UKHotviews

  • browse our latest research

  • see details and booking links for upcoming TechMarketView events

  • access advertising and sponsorship information

  • view TechMarketView programme announcements and application forms

  • reach our Social media channels

  • see all the latest news from the TechMarketView team

The new site will be going live during the afternoon of the 22nd August and access to our website will temporarily unavailable while our technical team work behind the scenes, but we aim to keep disruption to a minimum. If you have any questions, then please feel free to contact our Client Services team.

We hope you will enjoy the new user experience.

Posted by HotViews Editor at '00:00'

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Wednesday 14 August 2019

WeWork files IPO prospectus

A Bubble valuation or the next Amazon?

WeWork LogoAn increasing number of my meetings these days seem to be with companies working from WeWork offices. As WeWork’s prospectus for its Sept IPO shows, revenues are growing fast - 2019 H1 revenues doubled to $1.54b compared to 2018 H1. WeWork now has 520 offices in 111 cities. Just like Cloud Computing, WeWork means that you can have just the amount of office space you need and grow it rapidly if required but only take on a short term lease/rent commitment. I well remember, in my start up days, having to commit to long leases with onerous clauses. I know many entrepreneurs who got personally ruined - not by their businesses - but by the lease obligations they took on. So I can really see the merits of the model.

We Work (to be called the WE Company from now on) is also expanding into housing (WeLive) and education (WeGrow)

Mark SqBut, but, but I can also see the downsides. For as long as WeWork has been in existence, we’ve had a growth - some might even say ‘boom’ - market. Many start-ups and scale-ups use WeWork. On top of that big companies have been changing the way they house their staff - moving to hotdesking etc. I think that WeWork is highly susceptible to a downturn which could see reduced demand, customers rapidly reducing (rather than increasing) the space they need and many more defaults. Tenants are on short leases - but WeWork takes on LONG leases. WeWork has lease obligations totalling $17.9b - or $47.2b when not discounted for accounting purposes. Remind you of anything??

Many commentators believe we are on the cusp of a global slowdown (see Germany today and the global equity sell off on US recession fears) Indeed the opinion is that WeWork needs to get its IPO away quickly before it is bitten.

Then we come to the losses. On revenue of $1.54b in 2019 H1, WeWork made a loss of $905m (up from $723m a year back) In 2018 as a whole, WeWork had losses of $1.9b - joining that club of companies with losses > than their revenues! Call me old-fashioned, but I’ve never seen that as a good look!

And finally we get to the valuation. The last fund raising was at an implied valuation of $47b when Softbank (WeWork’s largest backer) invested $2b in Jan 19. Will they get anything close to that in an IPO? I suspect the founders think not as they seem to be selling their shares in the last round before the IPO. Not a great sign!

In summary, WeWork fills a need, is well regarded by its users. Like others it is an arch disrupter. But it is hugely vulnerable to a downturn. It is still a huge loss-maker and its valuation seems to me to be firmly in Bubble Territory. Conversely, so was Amazon in its early days...

Posted by Richard Holway at '16:58'

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Wednesday 14 August 2019

Tumbling

TumblrYou have probably read the news by now that Yahoo has sold Tumblr for c$3m  to Automattic. Made me reread my May 13 post Will Tumblr make Yahoo ‘cool’? when Yahoo’s then CEO Marissa Mayer announced its $1.1b acquisition of Tumblr from its 27 year old founder David Karp. My comment was ‘That’s a ridiculous amount to pay for a company with revenues of just $15m’.

If you have a TechMarketView subscription (if not, why not?) I suggest you search the archive on Marissa Meyer as my many posts on this lady will give you a taste of my true feelings for her. Let’s just say, I am not a fan!

Of course, Yahoo was not the only company to pay over the odds to try to become ‘cool’ by buying a social media provider. Think Bebo or MySpace. Indeed I can’t think of any ‘heritage’ company that actually succeeded in becoming ‘cool’ by buying an upstart. All the ‘cool’ companies are still pretty much still controlled by their founders.

Reinventing yourself is pretty difficult to do even if your aim is not to become cool. IBM have tried many times without huge success. One of the few ‘reinvention’ success stories around at the moment is Microsoft once they jettisoned Balmer.

If you reread my May 13 post Will Tumblr make Yahoo ‘cool’? I was, even then, being asked if “we were living through a rerun of those crazy 1999 ‘dot.com’ days when, as an analyst, I was told to suspend all notions that companies should be valued on profits or even revenues. Eyeballs was all that mattered!”

For most of the current tech giants, that is not the case as they are extremely profitable and cash generative and are valued on pretty unexceptional multiples. But for most of the unicorns and the current crop of IPOs, I really do think that valuations have entered Alice in Wonderland.

Maybe I can finish with a quote from Jamie Powell’s excellent article The Tumblr tumble in the FT yesterday which ended “Thank the lord that, with WeWork’s IPO documents set to arrive this afternoon, there is no sign of similarly speculative mania in the markets today”.

Posted by Richard Holway at '12:06'

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Wednesday 14 August 2019

*NEW RESEARCH* UK Application Services Supplier Ranking 2019

If you haven’t read the 2019 Application Services Supplier Ranking report yet you can download it here.

The UK Application Services (AS) market grew more strongly than expected in 2018. Aggregate growth across the Top 20 UK AS suppliers also bounced back in 2018 increasing by more than twice the rate of the prior year. Once again, however, the spoils were far from evenly distributed with changes in year-on-year revenue ranging from -5.4% to +31%.Cover

This comprehensive analysis contains a view on the performance of each of the Top 20 UK suppliers in this arena, includes the ranking table showing estimated revenue and growth, provides insight into the dynamics shaping this market and highlights the up and coming players.

While sales of all things digital related continued to gather momentum, their impact on the AS market was as we had anticipated. The above forecast market growth in 2018 was a result of two factors that are unlikely to repeat this year; a rare handful of megadeals in the applications operations and support arena and a negligible Brexit effect.

At its heart, the AS market continues to be shaped by the interaction of a complex set of countervailing forces. User demand is still being stoked by needs to invest in digital transformation, compliance and security. It is, however, simultaneously suppressed by skills shortages, relentless operational cost pressures and the perceived risks of and readiness for large scale change programmes. Beyond these, the wider macro-economic and political uncertainties pose a fickle, but ongoing threat to technology investment decisions. These dynamics will be with us for some time to come as the market transitions from simple to complex digital transformation.

Subscribers to TechMarketView ESASViews can read the full analysis of who's gaining ground in this market, who's falling back, and why. If you don’t have a subscription and would like to know more about how to access our services, please email Deb Seth.

Posted by Duncan Aitchison at '09:19' - Tagged: ApplicationServices   research   supplierlandscape   research   research   research   research  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Wednesday 14 August 2019

SCISYS keeps winning

SCISYS logoWhile the Competition & Markets Authority (CMA)  launches its enquiry into the acquisition of SCISYS by CGI, the former has continued to announce contracts that highlight proven skill in its focus industries.

The first, announced last week, is with Defra’s Digital, Data and Technology Services (DDTS). SCISYS has been chosen as the preferred software solution and services provider to underpin the Defra Earth Observation (EO) Data Services. SCISYS will automatically and centrally process raw satellite EO data so that it can be analysed to deliver “reliable, timely and easily accessible Analysis Ready Data (ARD) products”. Defra will, as a result, be able to “easily, quickly, and cost effectively” monitor environmental change over time.

The second, announced today, is with a major European broadcaster. SCISYS will provide newsroom software, services and training. The integrated newsroom solution for planning and rundown management will use the SCISYS-developed OpenMedia INFINITY and NEWSBOARD software solutions, that are already used by 75K journalists worldwide.

The contracts demonstrate the strength of SCISYS’ market leading IP across many of its target markets, as well as the continued ability of the Group to draw on its industry expertise to develop bespoke solutions tailored to a client’s needs.

Meanwhile, the CMA is inviting comments on the CGI/SCISYS transaction over the next two weeks. Following the merger assessment process, a decision is expected by 10th October.

Posted by Georgina O'Toole at '09:12' - Tagged: public+sector   centralgovernment   media   software   merger   M&A   IP   development  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Wednesday 14 August 2019

PA Consulting to go under the hammer?

LogoAmerican private equity house Carlyle Group is considering the sale of its majority stake in PA Consulting. Sky News reports that the investment banking arms of HSBC and JPMorgan have been appointed to conduct the strategic review. An auction of Carlyle’s 51% holding in the 76 year old UK HQ’d firm is seen as the most probable outcome.

Having had a few quieter years post the Carlyle buyout in 2015, PA Consulting has been picking up the pace of late. The firm enjoyed somewhat of a boom in 2018 delivering revenue of £456m. This was up by 14% yoy, well over twice the growth rate of the global consulting market. Furthermore, the company has chalked up five acquisitions in the last eighteen months (see here), four of which were in the innovation and design agency arena.

PA Consulting is also pushing forward on the organic growth front. Last September it opened a digital development centre in Belfast. Initially focused on digital engineering skills, the new centre will aim to create 400 new jobs by 2023 (see here).

A trade sale is by no means the only option on the table. The remaining 49% of PA Consulting’s equity resides currently with the firm’s staff. A return to full employee ownership, as existed from the company’s foundation in 1943 until the deal with Carlyle four years ago, has not been discounted.

There is, however, likely to be no shortage of interested parties as this review plays out over the next several months. A robust consulting practice is becoming a competitive necessity for all SI’s in the digital era as such capabilities move from a discrete front-end competence to a much more integral component of all build and run propositions. The private equity sector too has been showing renewed interest in this sector of late. The prospect of acquiring a large, international, well-respected consulting brand will be tempting to many.

Posted by Duncan Aitchison at '09:12' - Tagged: consulting   sale  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Wednesday 14 August 2019

Regulator confirms 18 month delay to payments reforms

FCA logoThe Financial Conduct Authority (FCA) has confirmed that it is delaying the UK’s scheduled introduction of Strong Customer Authentication (SCA) for 18 months. The move is to allow the payments industry and retailers more time to prepare and is in response to widespread concerns over a lack of readiness.

The move to multi-factor authentication had been due to come into force on 14 September 2019 as part of the Open Banking reforms borne out of PSD2 (see: Open Banking momentum starts to build). The FCA has today confirmed that no action will be taken against companies that fail to meet the deadline, provided there is evidence they have taken steps to comply. The FCA expects that all companies will have made the required changes and undertaken testing by March 2021.

The FCA’s decision comes roughly a week after the UK’s financial services trade association, UK Finance, submitted its recommendations on a revised timetable (see: Regulator considers 2-year delay to SCA). UK Finance is thought to have proposed the new deadline for the implementation of SCA of March 2021, coupled with a further six-month grace period.

There have been widespread concerns over the UK’s lack of preparedness for SCA and imposing the September deadline could have had a damaging impact on retail trade as a result. As the UK economy slows and the threat of a damaging No-Deal Brexit looms, it appears that common sense has won out. The additional time to prepare for SCA will be welcomed by many in the industry. 

Posted by Jon C Davies at '09:05' - Tagged: payments   OpenBanking  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Wednesday 14 August 2019

Accenture lands major NHS cyber deal

Accenture logoAccenture has secured a contract to provide perimeter security services to the NHS. The framework agreement was procured by NHS Digital, working with the National Cyber Security Centre and NHSX, it runs for five-years and is worth up to £40m.

The service will mean organisations across the NHS will be able to access perimeter security features, including: next-generation firewall; secure filtering for web content; network intrusion detection and prevention capabilities; data loss prevention; and secure DNS services. It will utilise technology provided by Palo Alto Networks and Imperva.

NHS organisations will be able to adopt these services, which build on the current offer from the NHS Data Security Centre, for free. It should provide security specialists within the NHS with a better view of cyber threats and enable them to respond more rapidly to issues.

There has been a concerted effort to strengthen cybersecurity in the NHS following the 2017 WannaCry attack (see NHS must prepare for future cyber attacks). The contract follows a £60m investment to improve cyber resilience in local infrastructure, a Windows 10 security deal worth up to £158.5m (and subsequent deals with NHS Scotland and NHS Wales) and a £30m cyber security operations centre partnership contract with IBM last year.

There is still much work to be done. It was revealed last month (see here and here) that out of approximately 1.4m NHS computers, 1.05 million are still using Windows 7 and 2,300 are using Windows XP. However, deployment of Windows 10 is apparently in line with expectations and still on track to complete when support for Windows 7 ceases in January 2020. More widely, the Public Accounts Committee report on Cyber security in the UK published in May concluded that the Government has not yet done enough to enhance cyber security throughout the economy and better protect consumers.

Posted by Dale Peters at '08:57' - Tagged: nhs   contract   cybersecurity  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Wednesday 14 August 2019

‘Zero revenue’ startup Yoti worth £82m? Excuse me?

logoI don’t like to be seen as a nay-sayer as I truly am a keen supporter of UK tech startups and scaleups. I hope we have amply demonstrated that through TechMarketView’s well-received programmes such as Little British Battlers, Great British Scaleups and the TechMarketView Innovation Partner Programme, as well as by our extensive startup coverage in UKHotViews.

But I do believe it is necessary to peer beneath the hype and have a little prod around to form a more measured view as to whether a company is all that it appears to be.  

Such an example is London-based ‘digital identity’ platform, Yoti, which we wrote about when it first announced funding in January 2018 (see Identity platform Yoti valued at £65m). At the time we didn’t question the valuation. Frankly, we should have.

Yoti has just announced that it has raised a further £8m with a new valuation of £82m.

So, let’s prod.

According to its most recent accounts, Yoti, which was founded in 2014, reported zero revenues in the year to 31st March 2018, with pre-tax (refund) losses of £17.0m, compared to losses of £11.4m the prior year. The startup also burned through £15.9m in operating cash, almost double the rate of the year before.

And what about the funding? Well it apparently came from private investors, employees and Yoti’s Co-Founder and CEO, Robin Tombs. Sounds like a ‘family and friends’ affair to me.

As for the valuation – well I have no idea where that comes from.

Yoti’s website claims that over 4m people have downloaded the app – but of course that’s free. The financial model is meant to derive from the few pence per transaction that Yoti aims to charge businesses to use its verification platform: 15p for age verification up to 30p for (claimed) biometric-based building access functionality. Yoti gives NCR as one of its partners that has ‘integrated Yoti technology into its self-checkouts’, though it’s not clear whether this is in use in any of NCR’s retailers.

Maybe Yoti really is bang on track to achieve its aim of becoming a ‘global identity platform’. Maybe it is truly worth £82m. But my ‘prodding’ might suggest a somewhat different narrative.

Posted by Anthony Miller at '08:47' - Tagged: funding   startup  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Wednesday 14 August 2019

SCC’s UK profits rocket

sccSCC, the European IT business that is part of the Rigby Group, has released its financial results for the year to the end of March 2019.

Revenue was up 18% to £2.2bn, with EBIT up 1.7%. Stars of the show were the UK and French product (i.e. resale) businesses, which saw revenue leap 23% and 20% respectively. As for the UK Services business, our estimates suggest it grew pushing 5% in the year, taking it over the £200m milestone. That is slightly faster than the Group growth figure of 4% (to £337m). 

Meanwhile, profits (operating profit before interest and tax) in the UK leapt 17%. Those profit levels are important because SCC continues to plough some of the funds back into the business. During the year, the company invested “significantly” in its capital programmes to ensure it maintains its pace of evolution to meet customer requirements as they ‘go digital’.

Going forward, the funds are there to buttress organic growth and appropriate acquisitions. In the year just closed, SCC acquired Chessington-based avsnet (November 2018) and Hobs On-site, the BPO arm of Hobs Group (May 2018). We expect to see more of these targeted acquisitions as the current year continues.

Posted by Kate Hanaghan at '08:26' - Tagged: results   cloud   datacentreservices   profits   growth  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Tuesday 13 August 2019

Computacenter buys back RDC business from Arrow

cccComputacenter has said it will buy the IT asset disposal business from distributor, Arrow, to ensure continuity of service for its own customer base. This is what was Computacenter’s RDC business, originally sold to Arrow in 2015.

In its Q2 results announced in July, Arrow said it was winding down the business, which it believed was “not sustainable over the long term” and “no longer aligned with our strategy”. The market for these services has changed significantly over the years as approaches to PC use and ownership have evolved.

Other asset disposal players will undoubtedly have been circling, but we suspect Computacenter’s knowledge of the business combined with its ability to move quickly enabled it to win out.arr

Computacenter CEO, Mike Norris, said that while “we have investigated working with other partners, we believe that acquiring RDC is the most straightforward way to guarantee continuity of service to our major accounts”.

In 2015, Computacenter sold the business to Arrow for £56m in view of it not being core to its proposition. While the irony of Arrow's sale back to Computacenter for essentially the same reason is not lost on us, it is ultimately a very sensible move for both sides. Computacenter would not have paid anywhere near the £56m it got for RDC's disposal four years ago, and while it might not be 'money spinning' in itself, ensuring customers continue to have access to these services as part of larger infrastructure/services contracts makes it a very worthy investment.

Posted by Kate Hanaghan at '09:29' - Tagged: acquisition  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Tuesday 13 August 2019

Flat first half but positive EBITDA for Starcom

Flat first half but positive EBITDA for StarcomUnaudited interim results revealed an EBITDA profit of US$75k for Jersey-based telematics firm Starcom Systems, though revenue was flat year on year at US$3.1m. Operating losses narrowed to US$374m from US$510m a year earlier as the company reduced its RnD spend and administrative costs.

Starcom management are confident that the pipeline will show an improvement in the second half and expect a positive EBITDA for the full financial year after missing out in FY18. Expectations for sales of its newly introduced Internet of Things (IoT) enabled Lokies keyless padlock are high and the company is building its long-term strategy around its Tetis shipping container tracking and monitoring solution, identified as a “catalyst” for future growth.

That should help to counter decreasing revenue from its traditional Helios SaaS product, through new contracts with a West African distributor and momentum with US sales partner Zero Motorcycles should buck the trend in the second half as demand for electric bikes ramps up.

Posted by Martin Courtney at '08:54' - Tagged: telematics   iot   H1   revenue   StarcomSystems  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Tuesday 13 August 2019

*NEW RESEARCH* UK Business Process Services Supplier Ranking 2019

If you haven’t read the 2019 Business Process Services Supplier Ranking report yet you can download it here.

report coverThe UK BPS market continued to go through a period of significant disruption and change in 2018, reflected in the variety of performance and movement within the Top 20 suppliers to the market by revenue.

Brexit uncertainty continues to dampen market confidence, no more so than in the public sector, already suffering from a Carillion based lack of trust. Whilst the private sector remains more active, investment decisions are still often delayed and confidence in some areas remains low. 

Given the lack of certainty and market confidence, renewals and extensions have become increasingly common. As a consequence, client engagement and relationship management have never been more important.

Digital transformation continues to drive the market forward. End users have increasingly undertaken simple digital change - ad hoc, point and predominantly front-end solutions - resulting in digital chaos and a BPS environment that needs to be put in order. These complex and varied arrangements are driving demand for change management and consulting-based services. 

The flipside is that difficulty in dealing with a complex environment drives caution and risk aversion, which can of course manifest in delays and cancellations. Either way, BPS providers are having to get to grips with disrupting themselves, both culture and behaviour before they can truly deliver for their clients.

Subscribers to TechMarketView's BusinessProcessViews research services can read the full analysis of who's hot and who's not, and why, in our new report UK BPS Supplier Ranking 2019.

If you are not yet a BusinessProcessViews subscriber, please contact Deb Seth to find out how you can access the research.

Posted by Marc Hardwick at '07:51' - Tagged: bpo   bps   newresearch  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Tuesday 13 August 2019

Don’t mention the war – Deliveroo exits Germany!

logoAs the war for global domination of the online food delivery market rages on, another protagonist has exited one the largest battlefields in Europe.

UK-based Deliveroo has just announced that it is to end operations in Germany this week. This follows Berlin-based Rival Delivery Hero selling its operations in its home market (!) to Amsterdam-based Takeaway.com in December last year. Meanwhile, Takeaway.com is in undertaking what is in effect a reverse takeover of UK-based Just Eat (see Just Eat looks to share a Takeaway).

Phew – got it so far?

The food delivery market is turning as much into a battle of the business models as a contest for who has the deepest pockets. In the early days there was clear delineation between business models. There were straight out marketplaces like Just Eat with a ‘people light’ – and once highly profitable – business model serving food outlets with their own delivery teams; and then there were the likes of ‘people heavy’ Deliveroo, with their own delivery teams serving food outlets that did not. Now it’s becoming a bit of a free-for-all as they all try each other’s business models and more besides (see Deliveroo gives top billing to Edinburgh’s Cultivate).

Only it’s not free, witness the profitability challenges at Just Eat (see Just Eat back in loss ahead of Takeaway ‘merger’, and the tons of money pouring into heavily loss-making Deliveroo (see Amazon Primes Deliveroo). Now add to the business model recipe a soupcon of ‘dark kitchen’ (see Kalanick’s UK ‘dark kitchens’ see the light of day (and night)) and a liberal splash of Uber (see UBER growth slows as losses escalate) and you have to ask yourself whether there can ever be an outright winner in this war.

Posted by Anthony Miller at '07:47'

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Tuesday 13 August 2019

ADI secures NPIF investment for NHS push

ADI logoSaltaire-based Advanced Digital Innovation (ADI) has secured a £650,000 investment from NPIF - Mercia Equity, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund.

ADI was founded as a research and development innovation agency in 2005 by Bob Gomersall (chairman of ADI, BTL Group and Virtual College) and was backed by Yorkshire Forward, the now abolished regional development agency for Yorkshire and the Humber. Led by CEO John Eaglesham, it was designed to act as a bridge between universities and industry. ADI, which became independent of Yorkshire Forward in 2010, initially operated as a consultancy delivering digital change projects, predominantly to healthcare providers, and later developed its own software products.

The funding will be invested in accelerating the adoption of ADI’s MyPathway product in the NHS. MyPathway is a secure, digital communications platform designed to connect patients to clinicians and health services. The browser and app-based system provides automated capture of Patient Reported Outcome Measures (PROMs) and Patient-Reported Experience Measures (PREMS), which provide an indication of the quality of care delivered to NHS patients.

MyPathway has been used by Sheffield Teaching Hospitals NHS Foundation Trust and North West Boroughs Healthcare NHS Foundation Trust, and has recently been adopted by NHS North East Essex CCG. ADI has also carried out two successful clinical trials with the Hospital Clinic of Barcelona. The NPIF investment will allow the company to build its sales and marketing team and further develop the product.

ADI has been working in the digital health space for many years and was involved in the development of tele-health systems a decade ago. This experience, the new investment, its collaborative approach and the increasing focus on digital solutions in the NHS should stand the business in good stead for the future.

Posted by Dale Peters at '07:34' - Tagged: nhs   funding   healthcare  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Tuesday 13 August 2019

An Evening with TechMarketView 2019 - Update!

TMV logoJoin some 200 leaders from the world of UK tech in London on the evening of 12 September to hear the latest insight and analysis direct from TechMarketView’s expert team. Tickets are selling quickly so book your place now before it's too late! 

The seventh annual ‘Evening with TechMarketView’ commences with a drinks reception, sponsored by InterSystems, from 6.30pm and finishes with a three-course silver service dinner, sponsored by Datto. In between those two fantastic networking opportunities, our guests take their seats in the auditorium for a series of short presentations from TechMarketView’s senior team on the trends and suppliers shaping and disrupting the UK tech market, for example:

·      Hear what suppliers and end-users of tech should be doing in order to prosper in ‘The Year of the Relationship’

·      Understand how growth rates differ between ‘heritage’ and ‘new’ products and services and the forecast implications

·      Find out which SITS suppliers in the UK top 60 grew fastest last year and why.

Mastercard logoGuests will also be privy to a ‘fireside chat’ with Mastercard’s EVP for Global Cities, Miguel Gamiño. Prior to joining Mastercard, Miguel served as the CTO of New York City, pioneering a new civic engagement and innovation platform for NYC and he has stood as a voice of leadership in tech policy, including smart city and IoT programmes. 

Prince's Trust logo

We are also delighted to be joined for the evening by representatives from The Prince’s Trust, including the charity’s Deputy CEO Tara Leathers, who will be sharing insight on the fantastic work that they do with young people with support from companies across the UK tech sector. 

Tickets are selling quickly so don’t risk missing your chance to join us for an enjoyable evening of analyst insight and quality networking – book your place now! There are also a limited number of tables of 10 available so why not gather a group of colleagues or clients and bring them along for the evening too?

Don’t forget that if you are a TechMarketView subscription client, subscribe to UKHotViewsPremium or if you're one of our Little British BattlersGreat British Scaleups or Innovation Partner Programme companies, you will be eligible for the discounted TechMarketView ticket price. See the full details and booking form here.

Event details

Date: Thursday 12th September 2019

Venue: Royal Institute of British Architects, London

Format: A networking drinks reception commences from 6:30pm, supported by InterSystems. This will be followed by 90 minutes of speaker sessions and a first-class silver service dinner supported by Datto.

For more information contact tx2events at 020 3137 2541 or

CLICK HERE to book now!

An Evening with TechMarketView is proudly supported by:

InterSystemsDatto logo

AqillaKimble

Posted by HotViews Editor at '07:30'

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Monday 12 August 2019

Advanced: £2bn vote of confidence

logoA cool £2bn investment in business software provider Advanced is a vote of confidence in the growing UK-based company - and the UK tech sector. The investment will see existing investor Vista Equity Partners, who acquired Advanced in 2015, retain a 50% share in Advanced and BC Partners enter as an equal partner. The deal is estimated to represent an earnings multiple of approximately 20x.

The size of the investment exceeds the May 2018 £1.3bn deal for accountancy and payroll solutions provider IRIS Software Group which was the UK’s largest private equity led software buyout at the time. It reflects the progress Advanced has already made under Vista and the management team led by CEO Gordon Wilson.  

We highlighted the advances made following the first year of Vista’s investment in Advanced on a mission after transformational year. Since then the company has continued to develop on multiple fronts including streamlining operations, strategic acquisitions (e.g. DocmanScience WarehouseInformation BalanceKironaModern Systems), organic product development including SaaS and a unifying cloud platform, and development of the management team. The results have been tangible in terms of revenue and earnings growth and a significant improvement in customer satisfaction. In the 2019 TechMarketView Enterprise Software Ranking, Advanced (the third largest UK HQ’d software company) edged up in the ranking with revenue growth that outpaced aggregate UK software market growth. 

Wilson is enthusiastic about the investment and its scope to accelerate the existing Advanced strategy with its focus on selected sectors and application modernisation. Organic growth is core but so too are acquisitions and in his view the two PE M&A teams plus Advanced’s internal team make for “the strongest M&A function of any UK software company.” He also believes BC Partners’ London operation will also give it an M&A edge. Clearly, we can expect plenty of activity. 

Advanced will undoubtably become bigger as a result of this investment, even with other PE’s enthusiastically investing in rival software providers. The challenge is to become better too and this is a prime aim - to deliver for customers, employees and investors. It has made good progress to date but there is still quite a task ahead.

Posted by Angela Eager at '14:10' - Tagged: cloud   investment   software   privateequity  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Monday 12 August 2019

DXC's Fovargue to lead Leidos UK

Leidos LogoA familiar face is due to pop up at Leidos. The Group has announced the appointment of Simon Fovargue as the new Chief Executive of Leidos UK; he will join on 7th October.

We have had regular meetings with Simon over the years. He has worn two hats at DXC (previously HPE) for the last five years:  Vice President of Defence and CEO of the Atlas Consortium (formed to develop the MoD’s Defence Information Infrastructure). Having left the British Army in 2006 after serving for 19 years as an officer, he has held various C-Suite and Ministerial roles in DXC related to defence and technology across the public and private sectors.

Simon Fovargue photoSimon will replace Matt Wiles, who has held the CEO role since January 2018; over his time, Matt successfully unified the Leidos and Lockheed Martin Information Systems & Global Services (IS&GS) businesses after their merger (see UKHotViews archive for more). Matt will move into a part-time strategic advisory role.

In 2019, we have witnessed Leidos UK move from a “cost out” phase to an “invest, build and grow” phase. We have been impressed with the pipeline, which has the potential to increase Leidos’ footprint in the defence sector as well as in the wider public and private sectors (across civil government, transportation, energy and health). Simon is joining Leidos at an interesting time; the company has been little known outside of defence logistics but is beginning to spread its wings and increase its brand awareness. We look forward to hearing Simon’s plans for the business once he has his feet under the table.

Posted by Georgina O'Toole at '09:48' - Tagged: defence   appointment  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Monday 12 August 2019

*UKHOTVIEWSEXTRA* helpIT: matching digital data dots

logoThe recent fines served on BA and Marriott for failing to protect the personal data of EU citizens were a warning sign that the ICO is beginning to wield the power granted through GDPR. As we noted at the time (ICO fires data protection warning salvo), the scale of the breaches appeared to have a bearing on the size of the fines, which highlights the need for organisations to know their customer data to be able to rapidly detect and grasp the extent of any breach. That’s where data matching tools have a role to play. We caught up with Steve Tootill, CEO of data matching specialist and one of our early TechMarketView Little British Battler participants helpIT systems, to find out how the company is capitalising on the opportunity. 

logohelpIT is in the business of contact data matching, record linking and deduplication. Data security and the desire for tools to help present a single view of the customer - and by association help organisations experiencing a data breach get to grips with the scope - are raising the profile of this established but sometimes overlooked technology area. They are certainly factors driving helpIT’s growth. A more detailed assessment of helpIT and the role of data matching software in available here in HotViewsExtra. 

Posted by Angela Eager at '08:55' - Tagged: cloud   software   dataprotection   datamanagement  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Monday 12 August 2019

Sonata strikes a flat note

logoI recently met up again with Tridip Saha, Head of Europe & US for Bangalore-based mid-tier Indian pure-play Sonata Software. It would be fair to say that Sonata is not well known on our shores (see Sonata’s services sing a sweeter serenade), deriving some 30% of its $160m worldwide IT services revenues from Europe, of which about 70% comes from the UK. However, Sonata’s European business is growing fast, with its focus pretty evenly spread across four key verticals (Retail/CPG; Travel; Distribution; ISVs) and some surprisingly well-known brands in its client list.

That said, Sonata’s International IT services arm struggled for growth in Q1 2020 (ending 30th June 2019) with headline revenues essentially flat compared to the prior quarter, at Rs304.5 Crores (c. $44m), albeit 18% higher yoy. EBITDA margins expanded significantly to 27.7%, the highest in recent years.

It probably suits Saha for Sonata to remain under the radar while he builds a more substantial presence in Europe. Mid-tier competitors, particularly those addressing Sonata’s focus sectors such as Retail and Transport, should keep an eye on them.

Posted by Anthony Miller at '08:52' - Tagged: results   offshore  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Monday 12 August 2019

Atos creating NICE CX

AtosAtos has announced that it will be adding NICE’s inContact CXone, a cloud-based Contact Center-as-a-service solution to its Customer Experience (CX) armoury, looking to roll it out across its customer services estate.

NICEAs we have covered elsewhere (see here), Atos increasingly sees its approach to Customer Experience as a real differentiator and will no doubt be using this partnerships as an opportunity to get on the front foot with clients increasingly being measured on and rewarded by enhanced CX. Moving clients here to the cloud is not only about driving down cost to serve but offers a great opportunity to redesign customer services digital-first. 

Israel HQ’d NICE is also a specialist provider of Robotic Process Automation (RPA) in a customer service environment where its software NEVA (NICE Employee Virtual Attendant) offers another approach to blending human and robotic labour. As we outlined in our recent report Digital Employee Experience and The Future of Work this is becoming a real battleground for service providers with the area set to benefit from increased investment  - as we saw last week with the acquisition of attended RPA specialist Klevops by Automation Anywhere.

As customer service operations have become increasingly commoditised, investment in technologies like NICE’s customer service platform have become strategic imperative number one for operators if they want to stay relevant – expect to see lots more announcements like this one. 

Posted by Marc Hardwick at '08:46' - Tagged: partnerships   customerexperience  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Monday 12 August 2019

Mi-Pay hints at tough times ahead

MiPayAIM-listed, mobile payments provider, Mi-Pay, has provided a somewhat pessimistic trading update, ahead of the release of its half-year results on 25 September. A deterioration in the economy, coupled with uncertainties around PSD2 (see: Regulator considers 2 year delay to SCA deadline) have prompted fears of a slowdown in the second half, whilst the loss of a major client also looms.

Management at the Bagshot based FinTech, indicated that performance during the first six months of 2019 had been broadly in line with expectations with revenues rising by 6% to £1.7m. Gross profit margins remained strong at 63% and administrative expenses stable. H1 EBITDA indicated that Mi-Pay more or less broke even during the period ended 30 June, compared to a £0.1m loss at the same point last year.

Mi-Pay announced that it had successfully renewed 2 major contracts, which between them accounted for 43% of the company’s revenue in 2018. However, the company also revealed that one of its major longstanding clients, looks set to terminate its relationship with Mi-Pay at short-notice. The departure of this mobile network operator after 12 years, would see Mi-Pay lose around 13% of its annual revenues (approximately £0.5m).

Mi-Pay has enjoyed a general upturn in its fortunes of late (see: Mi-Pay results reveal continued improvement) and the latest news heralds more challenging times ahead. Regardless of any deterioration in the external market conditions, the news highlights how much MiPay’s revenues are concentrated amongst a small number of clients. This is sometimes unavoidable, but always a business risk and management will no doubt be cutting its cloth accordingly to reduce the impact, should the termination come to pass.

Posted by Jon C Davies at '08:23' - Tagged: payments   tradingupdate  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link


Monday 12 August 2019

**NEW RESEARCH** Goodbye Applications, Hello Products – The Changing Face of IT Delivery

In the digital era, the received wisdom is that we are no longer to build and maintain applications estates, but rather to develop and manage product portfolios. From the industry rhetoric, it would seem that “application management” is destined for the scrap heap of history as “product management” replaces it in the IT lingua franca.Cover

But is this change in our lexicon more than just another example of the IT industry’s predilection for buzzwords?

Click to download Goodbye Applications, Hello Products – The Changing face of IT Delivery for both an analysis of the realities of product management and fresh insights into this potentially disruptive market trend.

The pressures to change the application management paradigm appear to be becoming irresistible. The relentless pursuit of agility is inexorably leading enterprises away from IT platforms built around few, large monolithic systems towards those comprising multiple, small, dynamic solutions.

This paper looks at how the practice of application management is evolving, assesses the materiality of these developments and considers their potential impacts across internal and external supply chains. With the age of product management beckoning for both the buy and sell sides of the industry, the report also examines the impact on demand for Application Services.

If you are an existing subscriber to our ESASViews you’ll know you can access the report by clicking the link above. If you’d like to discuss an extension to your existing subscription or would like details of how to subscribe to TechMarketView, please email Deb Seth.

Posted by Duncan Aitchison at '07:59' - Tagged: ApplicationServices   agile   digital   DevOps  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link




© TechMarketView LLP 2007-2019: Unauthorised reproduction prohibited see full Terms and Conditions.