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So we are in the midst of the most serious global pandemic. The world, including the UK and US, are facing the worst recession - maybe even depression - in our lifetime. But EVERY one of the indices we follow was in ‘positive territory’ in May. Indeed, NASDAQ is now up 4.6% YTD. As I wrote on 9th May 20 Big Tech seems to be having a good COVID-19...
We receive so many stories of companies doing more to embrace ‘Digital’ in 5 weeks than they have in 5 years. Many of those that have made that leap have not only survived but prospered. I do not think they will return to life BC. The same applies to the many companies that have embraced Working FROM Home. Having made the investment to equip employees for home-working they have since found that, not only has productivity not been affected (indeed often improved) but staff now really don’t want to go back to the old ways. This will have huge effects on the economy - the need for public transport and City office space in particular.
For a full, detailed review of the winners, losers and what the future might hold, see Share Performance in May 20 on HotViews Extra - available to all paying subscribers. Including HotViews Premium for just £395+VAT.
Easy to subscribe - Just CLICK HERE!
Posted by Richard Holway at '13:42'
DXC Technology has released full year results reflecting heavy losses and a sharp fall in revenue, in the face of ongoing customer attrition. For the year ended 31 March 2020 the company recorded a net loss of $5.4bn, whilst headline revenue was down by 5.7% to $19.6bn.
DXC’s Global Infrastructure Services business (GIS) was down 13.3% to $10.5bn whilst Global Business Services (GBS) recorded an increase of 5.3% to $9.1bn. However, for FY20, these figures include revenue from DXC’s $2bn acquisition, Luxoft, completed in June 2019.
DXC’s decline accelerated in the final 3 months the fiscal, with the company’s Q4 losses reaching $3.5bn and GIS recording an 18.8% decline in revenue. Delivery failures and missed SLAs have hit the company hard, with a number of high-profile customers having been lost and the cost of legal settlements impacting the company’s profit line. CEO, Mike Salvino, indicated that the revenue impact of this trend was in the region of $1bn and was likely to accelerate in the early part of FY21.
TechMarketView clients, including HotViews Premium subscribers, can read more about DXC’s full year results and the company’s future prospects now via UK HotViews Extra “Salvino circles the wagons...". You can also learn more about the resilience of DXC and the Top 20 UK SITS suppliers via our latest research COVID-19 Vulnerability and Resilience.
If you are not yet a TechMarketView subscriber and would like access to these or any other of our resources, please contact Deb Seth.
Posted by Jon C Davies at '09:57' - Tagged: results
TechMarketView has developed an unrivalled understanding of the UK tech supplier community based on years of analysis and a network of relationships with players of all sizes.
In “COVID-19 Vulnerability and Resilience: Top 20 SITS Suppliers”, our experts analyse how well positioned the UK’s largest 20 providers of Software and IT Services (SITS) are as we continue to live through the COVID-19 pandemic. Are your suppliers behaving as you would like them to? And are they well placed to continue to deliver vital services to your organisation?
The Top 20 is based on TechMarketView’s most-recently published UK SITS Supplier Rankings (July 2019). Find out who the players are and read about how successful they have been at navigating these very difficult times.
Compiled by our expert analysts, it gives an easy-to-digest summary of their position across eight areas: Pre-COVID Financial Strength, Industry Focus, Supply Chain, Remote working ability, Revenue model, Talent retention, Business model agility, and Corporate conduct.
Some of the findings are heartening and praiseworthy. Furthermore, the analysis shows that a highly considered approach must be sustained in order to navigate the coming months and quarters. Some customer businesses will collapse, and certain sectors face structural changes, the likes of which we have never seen before.
The analysis is available now to members of our Tech User Programme and other corporate subscribers. Please contact Deb Seth for more information on accessing our research or find out more about TechMarketView’s core Foundation Service, here. Download the analysis here: COVID-19 Vulnerability and Resilience: Top 20 SITS Suppliers.
Posted by HotViews Editor at '07:39' - Tagged: covid-19
TechMarketView continues to publish analysis that gets to the very heart of how the UK market and industry are coping as the pandemic continues.
Today we launch our COVID-19 Vulnerability and Resilience: Top 20 SITS Suppliers analysis. It is a unique look at how the larger providers of Software and IT Service providers have responded, and how well placed they are to survive and thrive. Compiled by our expert analysts, it gives an easy-to-digest summary of their position across eight areas: Pre-COVID Financial Strength, Industry Focus, Supply Chain, Remote working ability, Revenue model, Talent retention, Business model agility, and Corporate conduct.
Some of the findings are heartening, and demonstrate the thoughtful approaches taken thus far. Likewise, the analysis shows that a highly considered approach must be taken to navigate the coming months and quarters; some customers are facing collapse, and certain sectors face structural changes, the likes of which we have never seen before.
The analysis is available to corporate subscribers here: COVID-19 Vulnerability and Resilience: Top 20 SITS Suppliers.
If you would like to become a client, please contact Deb Seth.
Find out more about TechMarketView’s core Foundation Service, here.
Posted by HotViews Editor at '09:49' - Tagged: covid-19
A month or so into lockdown, TechMarketView took the pulse of the UK tech sector to see how suppliers were coping with impact of COVID-19 on their business. Some of our findings may surprise you!
Subscribers to any TechMarketView research service – including UKHotViews Premium – can download this slide-deck style report here.
Posted by HotViews Editor at '06:00' - Tagged: covid
Fujitsu's FY19 figures show global revenue was down 2.4% to 3,857.8 Yen. The firm “exceeded” profit targets in the Services business, excluding the impact of “business model transformation expenses”. Higher bonuses also impacted operating profitability. The firm is targeting a medium-term operating margin of 10% (it was 5.9% in FY19) and still believes this is achievable, even under the current circumstances.
The firm says COVID-19 has caused some supply chain disruptions, lower operating levels in manufacturing facilities, and logistics issues, but these are “more or less beginning to be resolved”. Takeshi Isobe, Corporate Executive Officer and CFO, says: “Even if COVID-19 can be contained relatively quickly, we expect that there will of course be large changes in the ways people consume and consumption trends, but also in the ways that business is conducted.”
In terms of guidance for FY20, Fujitsu is withholding that (like many others) “because it is difficult to reasonably estimate the results at this time due to the new coronavirus infection”. It plans to provide the forecast as soon as possible.
In Europe, where Infrastructure Services is the key part of the portfolio, Isobe says there is concern “that pressure to reduce costs may intensify”. However, in Consulting the firm is seeing “strong demand for proposals relating to how businesses should transform themselves, both before and after the impact of COVID-19”. In all, the sense is that rather than being an area of risk, “this may be more of a demand- driven area”.
Specifically in the UK, Fujitsu has been laser focused on supporting its existing client base…. More…..
Posted by Kate Hanaghan at '08:53' - Tagged: results cloud cyber data
As TechMarketView considers the impact of COVID-19 on the UK tech market, one area we are exploring is the types of technology organisations could turn to, to address operational strengths and weaknesses uncovered during the initial COVID-19 response and enable them to do things differently in the recovery phase. One technology emerging into the light is the graph database.
Read Graph databases: Weaving the frictionless business; accelerating AI/ML for our analysis of the potential of this technology.
Defined by the ability to handle multi-faceted relationships between data entities, this characteristic is valuable in situations where the connections between the data are as, or more, important than the individual data points: contact tracing for disease control for example; understanding how influencers connect to the decision making processes when approaching a prospective customer, or deepening the quality of the relationship with an existing client; making sense of behavioural change. TechMarketView also believes graph databases and analytics has a role to play in accelerating the adoption and operationalisation of AI/Machine Learning.
The technology is not a silver bullet course, and will add to the database estate rather than replace stalwart relational databases, but the ability to handle complex connections and surface relationship-based insights stands to bring a new dimension to data and contribute to the fabric of digitally enabled frictionless operations.
TechMarketView TechSectorViews clients can download the report here. Alternatively, email Deb Seth if you are not a client and would like details of how to access TechMarketView research and surrounding services.
Posted by Angela Eager at '08:11' - Tagged: software automation machinelearning database
As the impact of the lockdown on the UK economy starts to emerge, SITS providers and end-user organisations alike are considering the likely effect that the downturn will have on their business prospects.
Notwithstanding the potentially significant short-term slowdown in the wider economy, the disruptive impact of COVID-19 has leapt to the top of the corporate agenda
The coronavirus pandemic has been a truly seismic "Black Swan" event and is the number one factor currently testing established business models and technology ecosystems. Even as the UK starts to emerge from lockdown and take its first tentative steps towards some sort of normality, we can be sure that the post COVID-19 world will ultimately be a very different place for financial services.
The coronavirus has already become one of the top drivers of technology innovation and digital transformation initiatives. It is clear that timelines and technology roadmaps are set for a radical overhaul.
UK Financial Services SITS "Prospects for a Post COVID-19 World" discusses the priorities and pitfalls and explores the significant impact that the coronavirus is set to have on the future of the industry.
Subscribers to TechMarketView's FinancialServicesViews stream can download this new research now.
If you do not currently have access to this research, please contact Deb Seth for further information about how to subscribe to TechMarketView’s services.
Posted by Jon C Davies at '08:20' - Tagged: insurance banking financialmarkets wealthmanagement
In case you missed it, TechMarketView's assessment of the impact COVID-19 has had and will have on UK public sector software and IT services has been published.
New digital services have been introduced to the NHS at a speed that would have been unthinkable previously; education institutions have closed and universities face significant financial difficulties; local authorities are dealing with major changes to powers and duties; police have been helping to enforce the lockdown; central government civil servants have been increasingly engaged in dealing with the impact of the outbreak; and defence, arguably the least impacted, has still faced significant IT, security and workforce challenges.
Although some IT projects will be delayed or cancelled, it is clear COVID-19 will be a catalyst for accelerated digital transformation in the public sector. There will be opportunities for suppliers, but success will depend on reputation, empathy, collaboration and flexibility. Forward thinking suppliers should be considering how the public sector will operate post-COVID-19; in most cases it’s not about returning to the previous ways of working.
If you are an existing PublicSectorViews subscriber, you can now read about the impact COVID-19 has had on central government, local government, health, defence, education and police. COVID-19: The impact on UK public sector software and IT services also provides TechMarketView’s predictions for the impact over the remainder of 2020 and longer term, as well as presenting our recommendations for software and IT services suppliers operating in the public sector.
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 Dale Peters at '08:36' - Tagged: centralgovernment localgovernment nhs defence education police research healthcare covid-19
TechMarketView are trialling the introduction of monthly dashboards of the key sales data from the G-Cloud and Digital Outcomes & Specialists (DOS) frameworks. Today we can reveal the results for March 2020 (P12), the last month in the government fiscal year 2019-20.
Total G-Cloud spend for 2019-20 came to £1,558m up 16% compared to 2018-19 and DOS spending was up 23% to £829m. We will be providing a full review of 2019-20 shortly.
March data shows a significant spike in spending in P12. A spike is expected in this period, but the 55% increases compared to P11 was sufficience to mean March 2020 was the highest monthly spend since G-Cloud launched back in 2012. We also saw a spike in DOS spending, with P12 up 27% compared to P11. Deloitte led the way this month with £10.6m in G-Cloud business and £5.0m from DOS. Amazon Web Services (AWS) and Methods continued to perform well through G-Cloud. With sales of £6.5m, Kainos topped the list of DOS suppliers in P12—it ended the year having topped the spend chart in 10 out of the 12 periods in 2019-20.
If you are an existing PublicSectorViews subscriber, you can view the dashboards now. 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 Dale Peters at '10:01' - Tagged: government g-cloud data dos digitalmarketplace
Whether one identifies the trigger point as the advent of broadband, or the dawn of the social media age or the explosion in smartphone usage, we are now at least fifteen years down the path towards the Enterprise 4.0 era.
The pursuit of largely technology-drive digital transformation to date has, however, often resulted in anarchy leaving in its wake unruly digital development far-and-wide across organisations. These proliferations of “Simple” digital point solutions have collectively failed to yet deliver fundamental business change. Beyond this, many companies have simply lacked the confidence, motivation and raw courage required to address the wider structural, cultural and behavioural challenges required to enact radical reinvention. The wheels of the fourth industrial revolution for the vast majority of established enterprises have been turning at a relatively modest pace.
But this was before the advent of the coronavirus pandemic…
Click to download COVID-19 – An ill wind to fan the flames of the Fourth Industrial Revolution? for an initial view of how the current unprecedented events are likely to impact the market appetite for ”Complex” digital transformation.
This paper seeks to explore whether one of the likely by-products of Covid-19 crisis will be to alter materially the trajectory and velocity of the shift to the Enterprise 4.0 era. It therefore focuses on shape of digital services demand as we entered the pandemic, assesses the factors that had been conditioning its progress, and considers how these may now be altered going forward.
If you are an existing TechSectorViews subscriber 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 '07:41' - Tagged: systemsintegration digital transformation Industry4.0
The current imperative to embrace technology enabled business change within Financial Services has been felt most acutely and for longest in banking, where industry-wide transformation is already well underway. The established banks are seeing their traditional business models challenged by a wave of tech-enabled new entrants.
Despite banking’s relative digital maturity, the mortgage market remains a laggard. The often slow, bureaucratic and outdated processes have been treated with a “digital lipstick” applied to the front-end of an archaic process. It’s in the mortgage space that Target B is looking to launch the first genuinely digital process.
Target B is collaboration between service design agency Bio and business process outsourcer Target Group, with both Bio and Target Group sharing the same parent following acquisitions by Indian tech giant Tech Mahindra back in 2016 (see here and here).
Target has over 40 years domain expertise in mortgage lending and regulated financial servicing, and is a provider of business process servicing and operational transformation for over 50 major financial institutions including clients such as RBS, Barclays and Santander.
The Bio agency is a London-headquartered digital design consultancy, acting as a “change agent” taking a customer centric approach to service design and digital transformation, focused around customer journey transformation. The Bio agency specialises in front-end transformation, which fits well with Tech Mahindra’s technical capabilities and Target’s expertise in service delivery.
By bringing this blend of competencies together (domain expertise, customer journey transformation and tech delivery), Target B has the opportunity and capability to do something rather special.
Target B’s first product to market is “The Mortgage Hub”: a fundamental rethink of a process that has remained pretty much unchanged since the 1930s, delivered as a brand new “white labelled” digital mortgage platform due to launch in mid-2020. What makes this so different to current offerings in the market is that it is the first mortgage platform to have been designed from the ground up, centrally focused on customer experience with technology as an enabler…..read more here.
UKHotViews Premium and research subscribers can read more of our analysis on Target B and The Mortgage Hub – designing a digital mortgage experience here.
For more information about TechMarketView's subscription services please contact Deb Seth.
Posted by Marc Hardwick at '08:55' - Tagged: bps mortgages mortgageservices designthinking
TechMarketView’s Cloud and Infrastructure Services Supplier Prospects 2020 report is available now for subscribers to our TechSectorViews research programme.
The report profiles the UK’s ten largest players in the UK Cloud & Infrastructure Services market, looking at the particular challenges and opportunities they face this year and beyond.
Top of mind is, of course, the impact of the COVID-19 pandemic. Over a period of just a few months, the world has been upended - and we are still only in the very early stages of what is a very complex situation. The impact of the lockdown and disruption to the economy is such that various Cloud & Infrastructure Services providers have been left with little choice but to withhold their guidance on performance for the rest of the year. The question is not whether they will be impacted, but the extent of that impact. This report looks at what we know so far, and some of the actions taken.
Suppliers featured in this report are: Amazon Web Services, Atos, BT, Capgemini, Dell Technologies, DXC Technology, Fujitsu, HCL, IBM and TCS.
It should be read alongside the Cloud & Infrastructure Services Rankings report for 2019 and Cloud & Infrastructure Services Market Trends & Forecasts.
Over the next couple of months, subscribers can track TechMarketView’s regular flow of research as we help to explain just how best to survive and thrive in the UK Software and IT Services landscape during these times of deep uncertainty.
If you would like details of how to subscribe to TechMarketView, please email Deb Seth.
Posted by Kate Hanaghan at '08:31' - Tagged: cloud infrastructureservices
Public sector organisations have faced, and will continue to face, enormous challenges dealing with the COVID-19 crisis; however, the impact has not been felt evenly.
Posted by Dale Peters at '09:54' - Tagged: centralgovernment localgovernment defence education police health government covid-19
There is virtually no aspect of our daily lives that has been left untouched by the Covid-19 virus and the impact of it will likely be felt for several months and years to come. It’s worth remembering that all of the other diseases which existed BC (Before Covid) are still just as problematic during this pandemic, and in some cases are being exaccerbated by the disruption caused by Covid-19.
New modelling analysis released by WHO and partners ahead of World Malaria Day (25 April) showed that severe disruptions to insecticide-treated net campaigns and access to antimalarial medicines could lead to a doubling in the number of malaria deaths in sub-Saharan Africa this year to 760,000, compared to 2018. The annual death toll from malaria does not grab the headlines in the same way, but this disease has been endemic in many developing nations for thousands of years and still there is no vaccine.
In the absence of medical therapies to prevent malaria, access to antimalarial drugs and control strategies such as the provision of sleeping nets and spraying of insecticides are the cornerstones of WHO programmes to combat the morbidity of malaria. Recently, UK SME 2iC has been partnering with an academic research institute to develop a novel malaria detection and control strategy using technology originally developed for military use. A pilot project will start in a developing tropical country later this year… Read more.
TechMarketView subscribers – including those signed up for UKHotViews Premium - can read about the approach in UKHotViewsExtra. If you are not yet a subscriber, please contact Deb Seth to rectify the situation!
Posted by Georgina O'Toole at '09:08' - Tagged: health innovation iot
Merger and acquisition activity in the UK software and IT services (SITS) sector was seemingly unaffected by the COVID-19 pandemic during Q1 2020, according to latest data from technology investment bank, Silverpeak, with only a small decrease in deal flow, well within the bounds of the usual quarterly variations.
Subscribers to the TechMarketView Foundation Service and UKHotViews Premium can read our quarterly summary of corporate activity in the UK SITS sector in our latest report, IndustryViews Corporate Activity – Q1 2020, downloadable now.
Posted by HotViews Editor at '15:07' - Tagged: acquisition
WOW What a month
It seems quite surreal to read headlines like ‘US stocks have biggest monthly rally since 1987’ or 'UK blue chips in a bull market’. Surely we are in the very midst of the worst health crisis to hit in our lifetimes? Isn’t every analyst suggesting we are on the verge of (in the midst of?) one of the worst recessions - maybe depressions - ever?
NASDAQ was up an amazing 13.2% in Apr - erasing almost all of the losses in 2020 YTD. It wasn’t quite so good outside of tech though. The FTSE100, which although up 4% in April, is still a massive 22% down YTD.
The FTSE SCS Index, which most closely tracks the publicly quoted Software & IT Services companies that we track, was up 9.3% in April - so not quite in Bull territory yet and still down 20% YTD. At least the telco stocks managed to halt the slide - but are still down nearly 30% YTD.
Over 85% of the stocks we track recorded gains in April.
For a full, detailed review of individual stocks and what the future might hold, see Share Performance in April 20 on HotViews Extra - available to all paying subscribers including HotViews Premium.
Posted by Richard Holway at '12:14'
Until a few weeks ago, TechMarketView's research theme of "Digital Chaos" suitably captured the pressing imperative for end-users and SITS providers alike. Now it is the disruptive impact of COVID-19 that has leapt to the top of the corporate agenda
The coronavirus pandemic is a truly "seismic" event and the number one factor testing established business models and technology ecosystems alike. Notwithstanding the human and social cost of the coronavirus, the post COVID-19 world looks likely to be a very different place for financial services.
The coronavirus has already become one of the top drivers of technology innovation and digital transformation initiatives. It is clear that timelines and technology roadmaps are set for a radical overhaul, once we are all released from lockdown.
Posted by Jon C Davies at '07:00' - Tagged: insurance banking CapitalMarkets financialmarkets covid-19 wealthmanagement
