TBR Event Perspective: HCLT acts as a transformation partner for travel, transportation and logistics customers

By Jennifer Hamel (Jennifer.hamel@tbri.com), Professional Services Analyst; Bozhidar Hristov (bozhidar.hristov@tbri.com), Professional Services Analyst; Deleon Narcisse (Deleon.narcisse@tbri.com), Professional Services Research Analyst; Ramunas Svarcas (ramunas.svarcas@tbri.com), Principal Analyst; Patrick Heffernan (Patrick.heffernan@tbri.com), Practice Manager and Principal Analyst, IT Services

TBR perspective

HCLT continues to expand outsourcing relationships by delivering transformational services that enable clients to generate business value from the cloud, the Internet of Things (IoT) and digital technologies. The company is working to change its brand reputation from a low-cost IT outsourcing vendor to a business transformation partner in core verticals such as manufacturing and financial services. HCLT’s Travel, Transportation and Logistics (TTL) practice is the company’s newest endeavor, initiated in 2009, growing at a 41% compound annual growth rate over the last five years and representing 5% of the company’s revenue. The success is driven by combining well-established strengths, such as legacy application modernization, with newer capabilities, such as digital process engineering and user experience design, underpinned by platform-based delivery and a cadre of hired industry domain experts. As the transformation partner, HCLT enables TTL customers to enter into the digital world, by opening the door to their legacy infrastructure. The strategy positions HCLT to continue building long-term, high-value engagements that drive business outcomes for TTL clients and revenue growth for HCLT. Continue reading

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Enterprise end users’ investments in cloud professional services drive substantial growth in private and hybrid cloud adoption

HAMPTON, N.H. (Feb. 4, 2016) — According to Technology Business Research, Inc.’s (TBR) 2H15 cloud customer research, the market for enterprise-grade cloud solutions is maturing. In previous iterations of this research, which includes the reports Private Cloud Customer Research, Hybrid Cloud Customer Research and Cloud Professional Services Customer Research, cloud professional services was by far the most utilized cloud service among enterprise respondents as organizations planned for continued value-added, à la carte cloud adoption. This proliferation of professional services adoption led to a spike in “as a Service” cloud workload adoption. Continue reading

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Symantec encounters challenges amid its transformation to a pure-play security vendor

By Jane Wright, Engagement Manager & Senior Analyst

TBR assessment

Symantec’s first earnings report without its now-divested Veritas business unit highlights its challenges as it positions to regain its footing as a pure-play security vendor. Symantec’s combined enterprise and consumer security revenue declined 6% year-to-year in 4Q15, with the largest decline (10%) occurring in the consumer security unit. Symantec’s enterprise security revenue declined 3% year-to-year, and was essentially flat from a constant currency perspective and not as steep as year-to-year declines for the enterprise security unit in past quarters. Continue reading

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Lenovo leans on its Enterprise Group to weather challenging PC and mobile device market dynamics

By Krista Macomber, Analyst

Lenovo focuses CY16 efforts on sustaining Enterprise Group revenue growth and improving cost discipline to drive corporate profits

Lenovo’s Enterprise Group (EG) remains a bright spot for the company, with segment revenue rising 8% year-to-year to $1.3 billion in 4Q15 and operating losses shrinking from $42 million to $14 million during the time period. 4Q15 was an important quarter for EG, marking the first continuous year-to-year compare following the acquisition of IBM’s x86 server business in October 2014. Successful integration and turnaround of the previously struggling System x business is critical to Lenovo’s ability to meet its aggressive goal of $5 billion in EG revenue during its fiscal year ending in 1Q16; the acquisition has offered a fast onramp to enhancing Lenovo’s cachet in large enterprise data centers. Lenovo noted System x revenues of $1 billion in 4Q15, increasing by low single digits from the $986 million reported in 4Q14. Per TBR estimates, 4Q15 marks the second consecutive quarter of year-to-year revenue growth for the System x business following continual declines from 2Q12 to 2Q15. Lenovo reduced prices, integrated the unit into its vast channel network globally and increased emphasis on innovation in fast-growing markets to turn around the System x business. Continue reading

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Overcoming challenges in the PC market will be a priority for Lenovo in 2016 as inorganic growth disappears

By Jack Narcotta, Analyst

Despite year-to-year corporate operating margin improvement, revenue growth in its Motorola and System x server segment, and nearly delivering on its promise to restore its Mobile segment to operating profitability, a stout challenge remains for Lenovo: halting revenue declines in its PC segment despite, per Lenovo, record-high global PC market share of 21.6%. The upward trajectories of its Motorola and System x businesses speak to Lenovo’s ability to integrate, then reinvigorate slumping businesses. However, the incremental gains from these smaller business units are more than offset by the prolonged decline of its PC business. Continue reading

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Google is picking up speed as it begins to solve the mobile advertising conundrum

By Jack Narcotta, Analyst

Google’s YouTube, mobile and programmatic advertising services are firing on all cylinders

If the year leading up to 4Q15 was the break-in period for Google’s new mobile-centric advertising platforms, then TBR believes 4Q15 should be considered Google’s proof of concept and its largest step forward to date in removing obstacles as its revenue streams and customer base shift from desktop to mobile. Google’s 4Q15 results illustrate how Google is reaping the benefits from building an ecosystem around YouTube and its other mobile-focused digital properties. Continue reading

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Mobile, video and programmatic investments fuel Google’s ad tech business

By Seth Ulinski, Senior Analyst

As consumers move to digital channels for media consumption and commerce, Google is making the necessary moves to maintain its market position, including “ongoing improvements in ad formats and delivery,” per CFO Ruth Porat. While Facebook will continue to be a key competitor of Google, TBR believes its ad tech stack is still evolving and not nearly as mature as Google Ad Exchange or DoubleClick Bid Manager. However, the network effect (and value add) of Google’s properties is not as tightly wound as that of Facebook, which is becoming more of a focal point in a fragmented media landscape. As the two heavyweights fight for market share, agency relationships will loom large. WPP spent $4.4 billion on Google in 2015, up 38% from 2014. In comparison, the holding company spent $1 billion on Facebook, up 56% from $640 million in 2015. Continue reading

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