Ask the Analyst: Trend Spotting With Geoff Woollacott, Senior Strategy Consultant and Principal Analyst, Tailored Services

By Geoff Woollacott (geoff.woollacott@tbri.com), Senior Strategy Consultant and Principal Analyst, Tailored Services

TBR: What are you working on?

Geoff: Sometimes I feel the better question would be, “What am I not working on?” The growth of our consulting business, providing situation analysis workshops to a broad swath of clients, has me looking at many aspects of the industry; it’s fascinating work. There’s really no segment within the ICT [information and communications technology] market not facing fundamental disruption right now. Continue reading

Posted in 2Q16, Ask the Analyst, Tailored Services | Tagged , , , ,

Juniper’s revenue grew in 1Q16, but its outlook is uncertain due to a declining hardware business

By Patrick Filkins, Analyst

Growth in Services buoyed Juniper’s 1Q16 revenue, but lower sales from Enterprise customers dampened financial results

Juniper delivered revenue growth of 2.9% year-to-year, primarily due to growth from its Switching and Services segments, which grew 5.4% and 13.7% year-to-year, respectively. Services revenue was buoyed by pull-through services, such as maintenance, as a result of higher product sales in preceding quarters. Continue reading

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AWS continues database-driven growth while competition intensifies

By Molly Gallaher Boddy, Research Analyst

AWS’ 1Q16 results suggest another strong year of performance lies ahead, with a continued focus on database products and global expansion

Amazon executives announced on the company’s 1Q16 earnings call that the Amazon Web Services (AWS) segment was a $10 billion business, referring to the run rate reached, as the business grew 64% year-to-year to $2.6 billion, with an operating margin of 23.5%. AWS’ first-quarter results reflect the continued momentum the segment gained throughout 2015 and indicate AWS’ ongoing importance to Amazon’s overall corporate business. TBR notes AWS’ public cloud continues to be the main driver of the business’ success, with high-double-digit growth. The growth of AWS’ IaaS is supported by the company’s ongoing global data center expansion, with 11 availability zones and five data center regions set to open in 2016. Continue reading

Posted in 2Q16, cloud, commentary, earnings release, TBR, Uncategorized | Tagged , , , , , , , , , , , , , , , , , , , , , , , , ,

Minor portfolio adjustments will generate additional cross-selling opportunities, facilitating accelerated growth within Raytheon IIS

By Sebastian Lagana, Senior Analyst

Raytheon IIS begins 2016 on the right foot, leveraging core capabilities and international markets to fuel top-line expansion

Raytheon Intelligence, Information and Services (IIS) continued a string of positive momentum during 1Q16 earnings season from federally-focused IT and professional services vendors, growing 2.2% year-to-year. Results were driven by core business areas such as cyber and classified programs, underscoring the efficacy of IIS’ portfolio investments in specialized, noncommoditized and geographically agnostic areas over the past few years. Continue reading

Posted in 2Q16, commentary, earnings release, professional services, TBR, Uncategorized | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , ,

Fujitsu’s portfolio and geographic adjustments are paying off in lessening revenue declines

By Kathleen Kilbourn, Research Analyst

Fujitsu continues its strategy adjustments for top line improvements

For the past year and a half, Fujitsu has attempted to reverse its declining revenue by adjusting its data center portfolio to address customers’ IT modernization initiatives and shifting its resources to capture more sales outside Japan, where Fujitsu is headquartered. These efforts are beginning to deliver results as the vendor lessened its revenue decline in the past three quarters, and in 1Q16 reported a 1% year-to-year revenue decline to $11.5 billion in U.S. dollars (not adjusted for constant currency). Continue reading

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Fewer LTE coverage projects and a lack of new wins drove Samsung Networks’ revenue lower in 1Q16

By Patrick Filkins, Analyst

Samsung Networks will need to win contracts outside its existing LTE customer base to grow in 2016

TBR estimates Samsung Networks’ revenue declined 3.9% year-to-year as ongoing projects such as Vodafone’s Project Spring and LTE deployments for India’s Reliance Jio and Russia’s MTS were not enough to drive growth. Samsung will be challenged to find new growth as most of its current contracts are post-peak. Continue reading

Posted in 2Q16, commentary, earnings release, networking & mobility, TBR, Uncategorized | Tagged , , , , , , , , , , , , , , , , , , , , , , ,

Fujitsu Services integrates digital and analytics into its portfolio to capture transformational contracts outside Japan

By Sarah St. Pierre, Research Analyst

Enhancing portfolio offerings around digital and analytics presents opportunity for Fujitsu to win digital transformation deals on a global basis

Fujitsu leverages its product-led approach to capture services contracts from clients, particularly for systems integration. Fujitsu continues to develop capabilities relating to emerging technologies, investing in digital and analytics to integrate into its services to deliver digital transformations for clients. We believe Fujitsu is focusing on developing these resources to compete against peer services vendors that are also taking a business outcomes-led approach. Given Fujitsu’s lack of a strong consulting presence, we expect the company to face challenges differentiating from these vendors. We believe Fujitsu is beginning to take a vertical-led approach by tailoring its portfolio offerings around industries of strength, including financial services, agriculture and retail. Fujitsu also continues to expand globally, seen by recent contract wins outside its core market of Japan for cloud-based and digital services deals. Continue reading

Posted in 2Q16, cloud, commentary, earnings release, professional services, TBR, Uncategorized | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , ,