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They are the undisputed leaders in the Brazilian IT services marketpalce, by some estimates holding more share between them than the next six players put together. With IBM commanding 10% of the market, and Accenture another 8%, their position at the top of the leader board does not look like being challenged any time soon.
But IBM and Accenture are not dominant players. In reality the top 10 own perhaps 40% of the Brazilian IT services market, which means that there is 60% to be captured from mostly local players. This is arguably where the main opportunities reside.
In the latest edition of our occasional BrazilViews series, TechMarketView’s ‘born-again Brazilian’ managing partner, Anthony Miller, looks at who’s who and what do they do in the Brazilian IT services marketplace, and reports on his meetings with top management at Accenture and CPM Braxis Capgemini in the land of the samba sun.
You know the routine – if you are an eligible subscriber to our research services, then press here to download BraziViews. Tchau!
Posted by HotViews Editor at '08:15'
This morning (see Capgemini increasingly confident on outlook) we promised a deeper dive into the performance of Capgemini’s UK business in Q212 (and H112). Capgemini’s Executive Team described the UK as “stable” along with other geographies such as France, Germany, Italy and Latin America. However, it was outperformed by “hot” geographies – North America, the Nordic region and Asia Pac. In UKHotViewsExtra Georgina O'Toole analyses the performance and prospects of Capgemini's UK business. If you are not yet a subscriber please contact Deb Seth
Posted by Georgina O'Toole at '00:31' - Tagged: results publicsector
We highlighted the significance of the European Court of Justice ruling on second hand software sales earlier this month - further analysis reveals just how disruptive this decision could be for all software vendors who do business in the EU region.
The nub of the ruling is that businesses who purchase software on a perpetual basis are legally allowed to resell it. That has immediate implications for vendors’ addressable markets and potential revenue, but even more significantly, it could hit valuable maintenance streams as well as accelerating the move to a subscription model. Vendors need to make contingency plans now to deal with a disruptive ruling that could force a change in conventional software business models. TechMarketView subscribers can read our findings in Second-hand software: vendor implications - here. If you are not a current subscriber Deb Seth (dseth@techmarketview.com) will be happy to help.
Posted by Angela Eager at '18:52' - Tagged: software litigation
The Cabinet Office’s UK Government ICT strategy states that UK Government is fully committed to the adoption of cloud computing. G-Cloud is the umbrella programme focused on promoting adoption of cloud computing. One of the aims of the G-Cloud programme is to use transparency to encourage innovation, competition and new suppliers into the market.
Much has been made of what is on offer from SMEs, particularly their inclusion in the Cloudstore (the online catalogue of cloud services, which it is hoped will drive the take up of cloud services). However, the amount spent on the Cloudstore to date is a drop in the ocean compared to the £17bn+ spent annually on UK Government ICT. If UK Government is to push G-Cloud services uptake, it is important to also understand how the major suppliers are working within UK Government to support public sector organisations.
In this latest PublicSectorViews report - Approaching the G-Cloud: Leading supplier propositions -Georgina O’Toole considers the cloud services propositions of the top SITS providers and investigates the progress that they have made selling into the UK Government market to date. If you are not yet a PublicSectorViews subscriber, please contact Deb Seth to put that right!
Posted by Georgina O'Toole at '21:57' - Tagged: publicsector centralgovernment localgovernment cloud
We have just published a major new report on the infrastructure services market in the UK. Infrastructure Services: UK market trends and forecasts analyses the changes taking place in this £14bn segment of UK SITS. It gives readers a break-down of revenue opportunities and growth rates in areas like infrastructure consulting, provisioning and support, as well as forecasts to 2015.
The report is available to InfrastructureViews subscribers now. If you are not signed up for the service yet, please contact Deb Seth (dseth@techmarketview.com) for more details.
Posted by Phil Codling at '16:13' - Tagged: forecasts infrastructure
Top billing in this regular round-up of recent research goes to John O’Brien’s analysis of the UK BPS market. The report gives a full run-down of market forecasts in business process services up to 2015 and pulls out the implications of key trends such as the shift towards platform-based services. Naturally it’s required reading for anyone with a stake in the bumpy but relatively buoyant BPS sector.
Meanwhile, Tola Sargeant's research note on Fujitsu’s end-to-end PSN strategy gives PublicSectorViews clients further insights into one of the major opportunities in the government sector in the years ahead, not to mention one of the major competitors in the sector.
You can also catch up with all the research notes and reports published by the team in Q2 of this year by checking this quarterly summary. It’s a handy way of seeing whether you missed anything of interest to your business.
Eligible subscribers can also access a couple of new HotViewsExtra pieces from last week. Angela Eager, research director for enterprise software and application services, posted her comments on Microsoft’s loss-making Q4. And Phil Codling added his thoughts on Computacenter’s “fantastic” first half service growth.
As for press coverage, TechMarketView continued to feature in The Times, with Murad Ahmed quoting Richard Holway’s comments in his piece on cheaper rivals to the iPad (Times subscription required to access the content). Also in The Times, Nic Fildes once again turned to Anthony Miller for his views on CGI’s takeover of Logica in the article Barely a glance backwards as Britain’s last tech giant heads for Canada. In the trade press, quotes included Anthony Miller’s appearance in CloudPro following the publication earlier in the month of TechMarketView’s latest UK SITS market trends and forecasts.
If you need to know what is happening in the UK SITS market, you need to be a TechMarketView subscriber. If you’re not, just contact Deb Seth (dseth@techmarketview.com) for more details.
Posted by HotViews Editor at '09:38'
Microsoft got the bad news of a Q4 loss out of the door a few weeks ago when it revealed it was writing off $6.2bn, virtually all of its aQuantive acquisition costs (see here), so the formal announcement today in its Q4 and full year results did not trigger shock waves. It is not the one-off loss that is the main concern however, it is the ongoing decline in Windows revenue.
As far as the numbers go, Q4 (to June 30 2012) saw a loss of $492m (vs a year ago profit of $5.87bn) on revenue that was up 4% to $18.06bn. This was the first time it had made a loss since it went public in 1986. The numbers were better across the full year with net income of $16.98bn on revenue that was up 5% to $73.72bn.
All divisions experienced revenue growth except Windows and Windows Live which fell a painful 13%, declines in this division are almost becoming the norm. It was impacted by flat PC sales but more significantly by the rise of tablets and smartphones, and the related success of competitors like Apple and Google. Falling Windows revenue is another indicator of how important the October release of Windows 8 is to Microsoft - this radical redesign will determine how well it will be able to play in the multi device world. Windows is just one part of a much broader portfolio of course but it is fundamental to Microsoft’s overall success. TechMarketView subscribers can see further analysis of Microsoft’s results in HotViews Extra here.
Posted by Angela Eager at '09:26' - Tagged: results software
The UK government’s two main Public Services Network (PSN) procurement frameworks have now been published – see 29 suppliers listed on PSN Services framework and 12 PSN Connectivity suppliers chosen. One of the successful suppliers was Fujitsu, which is listed on both the Connectivity framework and eight lots of the Services framework. Fujitsu has a strong infrastructure heritage but it wasn't top of the 'usual suspect' list for PSN success. We were intrigued to learn more about the SI’s PSN strategy so we recently caught up with John Keegan, CTO for Network Services at Fujitsu. Subscribers to TechMarketView’s PublicSectorViews and InfrastructureViews research streams can read what we discovered in our latest AnalystViews note, Fujitsu’s end-to-end PSN strategy, which is available for download from today. If you’re not yet a subscriber and you’d like more details just email Deborah Seth who’ll be only too happy to help.
Posted by Tola Sargeant at '10:24' - Tagged: publicsector strategy networkservices
While other sectors of the UK software and IT services (SITS) market were either flat or in recession in 2011 (see UK SITS Market Trends & Forecasts – 2012), TechMarketViews’ newly published report UK Business Process Services Market Trends & Forecasts 2012, shows that the UK BPS market remained in positive territory in 2011, with headline growth of 3.9%. Taking into account CPI inflation, the market did however nudge into the red with a -0.5% decline, reflecting a similar picture of organic revenue declines we have seen from many of the major UK BPS players in the past year (see Capita ‘ups and downs’ in 2011).
The UK BPS market continues to go through a bumpy period as government spending cuts take their toll on existing BPS contract values, and put downward pressure on second generation deals coming through (see Second generation BPS deals: supplier opportunities and challenges). The private sector meanwhile is being impacted by the on-going Eurozone crisis and the UK’s ‘double-dip’ back into recession.
Despite the headwinds, we remain confident that the drivers for BPS remain firmly in place, and compared to other areas of the UK SITS market, will be more resilient to the wider deflationary impacts of disruptors such as the consumerisation of enterprise IT, the cloud and social media. In fact offshoring, arguably the biggest price deflator in BPS, is now seeing more repatriation back to the UK, notably in the private sector (see Aviva brings back calls from WNS).
Our outlook is nonetheless more cautious for the UK BPS market over the next few years. We now expect the market to grow at a compound annual rate (CAGR) of 6.1% between 2011 and 2015. However this still outstrips growth in other areas of the UK SITS market by some way, and it implies over £1.5bn in additional new revenue coming through for suppliers over that period.
There will be pockets of very strong growth, such as in platform-based Business Process-as-a-Service (BPaaS), whereby business processes are accessed on-demand and paid for as a utility. It is very early days, but we expect platform-based BPS, and now also BPaaS, to accelerate adoption over the next few years at the expense of the out-dated lift-and-shift BPO model.
Subscribers to TechMarketView’s BusinessProcessViews research stream can read the analysis, the trends and of course access the all-important numbers in UK BPS Market Trends & Forecasts – 2012 here.
Posted by John O'Brien at '17:00' - Tagged: bpo bpaas bps
It’s here! TechMarketView’s much awaited assessment and forecasts for the UK software and IT services market is now available. UK SITS Market Trends and Forecasts – 2012 may not make the most comfortable of reading given the possibility that the UK SITS market could be heading for a decade of market recession, but it is essential nonetheless. Subscribers can access the report here and download the accompanying spreadsheet here.
Not content with publishing one of our anchor reports, the TechMarketView team has been busy elsewhere. Managing partner Anthony Miller produced two further IndustryViews reports: Venture Capital – Q1 2012, containing the latest on VC acquisition activity, and Corporate Activity Review – Q1 2012, which looks at what is happening on the M&A and private equity side of the market.
As usual the team has been busy assessing the impact of the latest news on the UK market and its suppliers, with HotViewsExtra reports from ESASViews Research Director Angela Eager on Microsoft’s acquisition of social media platform provider Yammer (here), and its integrated IaaS/PaaS plans for its Azure platform (here). InfrastructureViews lead Phil Codling looked under the covers of 2e2 following the release of their full year results (see here).
The broadsheets continue to turn to the TechMarketView team for insight and comment. The Financial Times called on managing partner Anthony Miller and reported on our UK SITS market findings. The Times looked to chairman Richard Holway for his views on rumours of a 7in Apple iPad, and to Phil Codling for thoughts on RIMs latest bad news. A little earlier in June The Times quoted Angela Eager and BPS research director John O’Brien in its (separate) Big Data and Outsourcing supplements.
As usual, our views were also sought by the trade press. Highlights include Information Age, ComputerWeekly and CRN who all picked up on the UK SITS Market Trends and Forecasts - 2012 report, with Anthony Miller’s opinions much in demand. CRN issued a video, featuring Phil Codling discussing BYOT developments. Information Age, ehealth insider and ComputerWorld sought director Tola Sargent’s views on moves within the NHS regarding the lack of progress on electronic patient records, and renegotiations with CSC. Fellow director Georgina O’Toole appeared in CloudPro and PublicTechnology.net with her thoughts on the importance of big data in the public sector. IT Pro and CloudPro quoted Angela Eager on the implications of the European Court of Justice ruling on second hand software licence sales.
If you need to keep on top of what is happening in the UK SITS market, you really should be a TechMarketView subscriber, if you’re not just contact Deb Seth (dseth@techmarketview.com) to take the first step.
Posted by HotViews Editor at '09:35' - Tagged: roundup
Microsoft recently announced a swath of updates and new services for the Windows Azure PaaS environment that opened it up along several fronts, and as had been previously indicated, moved it towards the IaaS space. That move is creating new options for Microsoft and moving it into a position where it can begin to challenge the application-agnostic cloud services of Amazon and to a lesser extent, Google. We had an opportunity to talk with Bill Hilf, GM for Microsoft Azure to explore the strategy behind the activity. TechMarketView subscribers can read our analysis in Microsoft: taking a lead on integrated PaaS/IaaS. If you’d like to discuss subscriptions in order to get access to this and our extensive research portfolio, Deborah Seth (dseth@techmarketiew.com) will be only too pleased to help you.
Posted by Angela Eager at '08:02' - Tagged: cloud software
Could the UK SITS (software and IT services) market be heading for a decade of recession? That’s a distinct possibility given TechMarketView’s latest forecasts, published today.
With the deepening economic crisis in Europe affecting markets worldwide, and with downbeat UK GDP growth forecasts, we have had to take an even more pessimistic (we would say realistic) view of the prospects for the UK SITS market.
According to our estimates, the UK SITS market shrank by almost 3% last year in real terms (i.e. taking into account CPI inflation), the fourth year of decline. We see the pain easing over coming years, but we do not expect the UK SITS market to grow again in real terms before 2016. Indeed, it would take just two further years of decline to mark a decade of recession!
These forecasts reinforce our view that the UK SITS market will grow slower than the economy for the foreseeable future—indeed it is hard to envision a set of conditions when it would once again grow faster than GDP! It’s not just the financial crisis which is constraining growth. It is also the inexorable march of disruptive technology trends, such as the consumerisation of enterprise IT, BYOT (bring your own technology), mobile internet, social media, ‘big data’, offshoring (still!) and of course cloud computing.
The key characteristic they have in common is that they are all designed to reduce the cost of computing—in other words, they are all deflationary. The issue is not whether or not demand for SITS is increasing (or indeed IT in general, but hardware pricing is deflating even faster!). The issue is whether any increase in demand is sufficient to mitigate, if not outweigh, price deflation, especially given the now enduring customer sentiment of ‘more for less’ (or indeed ‘same for even less’).
Suppose you assume that price deflation pressure is only 10% a year (and that is surely low-balling it). By the time you add in the effects of inflation, we would need at least a 12% increase in demand just to keep the UK IT market flat. Possible? Maybe. Likely? Probably not. Perhaps the UK SITS market is doomed to remain in recession—full stop!
Eligible TechMarketView subscription service clients can download the UK SITS Market Trends & Forecasts – 2012 report from our website right now. Everyone else should contact Deborah Seth with a note explaining why you are not yet a client!
Posted by HotViews Editor at '08:45'
Despite (or perhaps because of!) the woes in the industry, we are proud to say that the prospects for TechMarketView look exceedingly bright. So, we need more analysts to write great research for our ever-increasing subscription client base.
If you are an industry analyst in the tech sector with at least five years solid experience, then we’d be interested in hearing from you.
We are a small team that punches well above its weight and our reputation is everything. Therefore we are only looking for incredibly dedicated people who write incredibly good research to incredibly tough deadlines! We mingle among the great and the good in the IT industry at the very highest levels so you need to be comfortable meeting and impressing client CEOs with your knowledge of the sector.
Most importantly, you will be working mainly from your own home – we have no office. If you haven’t done this before, then it’s probably best you cut your teeth with another company as it takes real discipline and self-motivation and does not suit everyone. But for those that it does suit, the benefits of very flexible working hours are tremendous.
Once you have proven yourself, there will be plenty of opportunity to take on more responsibility. And with responsibility comes the sort of reward that only a successful, privately-held research firm can offer.
If you think you are up to the challenge – and we’re talking about the long haul, here, not just a ‘career stepping stone’ – then please drop a line to our managing partner, Anthony Miller, with your CV.
Posted by HotViews Editor at '07:00'
Eligible TechMarketView subscription service clients can download IndustryViews Venture Capital, our new-look concise summary of venture capital investment in the UK software and IT services market, right here.
Posted by HotViews Editor at '11:00'
