Deploying BXT and being local: PwC and the next decade in China

Chinese companies’ desires to expand abroad, China’s sustained economic growth, and a new Chinese willingness to spend on consulting combined with PwC’s on-the-ground expertise, the firm’s understanding of its global clients, and the now well-developed Business-Experience-Technology (BXT) approach provide a foundation for PwC’s cautious optimism about its future in China over the next decade. Add what Global Advisory Markets Leader Randy Browning describes as PwC’s core strengths around capabilities and trust and one can understand the confidence and enthusiasm on display at the firm’s Shanghai Innovation Center, a well-designed complement to the established Experience Center in Hong Kong. Provided the firm can manage its talent and continue successfully navigating China’s economy and regulatory environment, both for itself and its clients, PwC will likely maintain a leading position among consultancies in the region.

 

JEDI is the force leading AWS’ charge into the U.S. Department of Defense

Central governments, even more than the largest commercial enterprises, struggle to keep pace with the current rate of technological change. Many times, major decisions do not occur proactively, but rather are made in response to gaps in capabilities that become matters of national security. The U.S. Department of Defense’s (DOD) Joint Enterprise Defense Infrastructure (JEDI) contract indicates the DOD finds itself in that very position, spurred by a need to address technology gaps resulting from a decades-long lapse in investment that started with the end of the Cold War. Since that time, near-peer rivals such as Russia and China have developed advanced capabilities in anti-access/area denial electronic warfare, state-sponsored cyber, and other technologies that make space and cyberspace contested warfare domains, eroding the U.S.’ traditional advantages in unassailable power projection on a global scale and increasing its vulnerability.

 

5G will support growth in the deployment and professional services markets, while slowing the decline of maintenance spend due to decommissioning and NFV/SDN

HAMPTON, N.H. (May 31, 2018) — According to Technology Business Research, Inc.’s (TBR) Telecom Infrastructure Services North America Market Forecast 2017-2022, the North America telecom infrastructure services (TIS) market will grow through the forecast period for three key reasons: Tax reform will stimulate capex investment; digital transformation initiatives will drive spend; and 5G investment will be pulled forward and accelerated by the big four operators in the U.S. to obtain or retain a competitive advantage. Spend pertaining to these overarching trends will be partly offset by cost savings from legacy infrastructure decommissioning, cloud, and NFV/SDN as well as synergies that are realized from M&A. TBR estimates the market will grow at a CAGR of 0.6% from 2017 to 2022.

“The big four operators in the U.S. intend to commercially deploy 5G as soon as late 2018, with deployments set to ramp up in 2019 and through the remainder of the forecast period,” said TBR Telecom Senior Analyst Michael Soper. “5G requires significant investments in fiber and upgrades in the network backbone and access layer, all of which will drive spend on TIS. 5G will slow the pace of decline in the maintenance market in the later years of the forecast period, but will not return the maintenance market to growth due to the aforementioned decommissioning and NFV/SDN.”

Vendors largely showed growth in North America in 2017. Although vendors with hardware exposure had flat or declining TIS revenue, suppliers grew sales if they had services and software portfolios aligned to operator transformation needs. Ericsson’s revenue declined predominantly due to the rescoped Sprint managed services contract. Cloud service provider spend remains robust in the U.S., helping Accenture and Nokia post growth in the region despite ongoing weak spend by telecom operators. Other vendors, particularly Juniper, are also obtaining a greater portion of TIS revenue from cloud service providers. Looking toward 2018 and beyond, IT services firms and software-centric companies, particularly Accenture, Amdocs, Tech Mahindra and Tata Consultancy Services (TCS), are best positioned to help operators capitalize on the digital economy.

TBR’s Telecom Infrastructure Services North America Market Forecast provides annual analysis and forecasting of the deployment, maintenance, professional services and managed services markets for network and IT suppliers.

For additional information about this research or to arrange a one-on-one analyst briefing, please contact Dan Demers at +1 603.929.1166 or [email protected].

 

ABOUT TBR

Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, and telecom vendors and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in a format that is uniquely tailored to clients’ needs. Our analysts are available to address client-specific issues further or information needs on an inquiry or proprietary consulting basis.

TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com.

Analysis: HP thrives on consolidation, enjoys a strong quarter in all its businesses

Despite its central position in two flat markets, personal computers and printing, HP has reported double-digit annual revenue growth in both, and double-digit operating profit growth in PCs for its most recent quarter. Growth in printing was, in part, inorganic, following on the company’s acquisition of Samsung’s print business, named S-print. At the same time, the printing business operating profit growth was only 1.6% year-to-year, and operating margin decreased 140 basis points to 16.0%, a consequence of the costs of incorporating S-print. — Daniel Callahan, Analyst

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Analysis: Lenovo can see light at end of tunnel as PC, data center businesses grow

Lenovo last week reported double-digit revenue and operating profit growth as its core PC and Smart Devices (PCSD) business thrived with 15.9% annual revenue growth and its Data Center Group enjoyed 43.8% year-to-year growth. The Moto mobile devices business shrunk, however, recording a 24.3% reduction in revenue. Profitability improved across all three groups, with increased PC pre-tax income, and reduced pre-tax losses in both data center and smartphone businesses. — Daniel Callahan, Analyst

EY blockchain strategy: Betting on public chains with EY advisory for risk mitigation

Blockchain sits firmly ensconced in the hype phase, but appears poised in 2018 to move, as EY described it, into live industrial applications. Even in this industrialization phase, the applications are minimum viable products with potential extensions available if public policy can take a leadership role on fiat currency guidelines, if regulators can find ways to automate and tokenize trust, and if trading partners can agree upon the basic operating parameters for their commercial transactions conducted via blockchain.

Underneath the business value of blockchain, however, is a rather significant bet to be placed on either deploying public (ethereum) or private (hyperledger) blockchains. At the core of this debate rests two issues: the speed of innovation, and the level of security and trust that can be ensured. Innovation, EY argues, happens faster on public networks even if that innovation ameliorates what bad actors inject into the network. In theory at least, even bad actors have a role to play in accelerating innovation by essentially forcing the issues and speeding the time to resolution.

 

The value imperative: Healthcare IT services vendors reorient around value-centric models of care delivery and payment

Traditional paradigms for healthcare payment and delivery are transforming into models that offer enhanced value, accountability, transparency and patient outcomes. To pivot with the market and its embrace of value over volume, healthcare organizations are reorienting themselves and their health IT infrastructures to become more data-driven, patient-centric and value-focused. Join us Sept. 26 as we discuss how healthcare IT services (HITS) vendors are evolving their solutions and go-to-market approaches to effectively navigate the changing healthcare market.

Join John Caucis as he reviews TBR’s most recent Healthcare IT Services Benchmark and discusses the trends shaping the HITS market in 2018.

 

Could cloud cast a shadow over Dell’s bottom line?

Cloud casts a shadow over Dell Technologies’ upbeat view of the future … . Specifically, the mega-scale global public cloud threatens the company’s margins. Dell Technologies is a vendor to public cloud providers, but because of the small number of major public cloud vendors and those companies’ technological self-sufficiency, the greater the percentage of computing and storage housed in public clouds, the lower the potential for Dell Technologies’ bottom line. — Stanley Stevens, Practice Manager and Principal Analyst; and Ezra Gottheil, Principal Analyst

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Technology Business Research, Inc. announces 3Q18 webinar schedule

HAMPTON, N.H. (May 22, 2018) — Technology Business Research, Inc. (TBR) announces the schedule for its 3Q18 webinar series.

July 11          Wallet vs. will: Transformation of government technology adoption

Aug. 8           Revenue growth drivers and opportunities in the IT services market

Aug. 15        IoT vendor roles

Sept. 12       Going inside customers’ minds to predict the future of cloud

Sept. 19       Webscale ICT market update

Sept. 26       The value imperative: Healthcare IT services vendors reorient around value-centric models of care delivery and payment

TBR webinars are held typically each Wednesday at 1 p.m. ET and include a 15-minute Q&A session following the main presentation. Previous webinars can be viewed anytime on TBR’s website.

For additional information or to arrange a briefing with our analysts, please contact TBR at [email protected].

 

ABOUT TBR

Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, and telecom vendors and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in a format that is uniquely tailored to clients’ needs. Our analysts are available to address client-specific issues further or information needs on an inquiry or proprietary consulting basis.

TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com.

 

 

Is Dell Technologies casually whistling past the cloud?

Dell Technologies World 2018 showcased how the company is integrating the changes resulting from Dell’s privatization in October 2013 and acquisition of EMC and its federated companies in September 2016. TBR believes that the merged companies are functioning well together and benefiting from technological and organizational synergies. The combined company has a clear mission and role as a provider of ICT infrastructure, benefiting both its internal decision making and its reputation in the market. This role, emphasizing infrastructure over solutions, fits the requirements of new technologies and new diverse solutions, advancing Dell Technologies (NYSE: DVMT) in the market. Within the constraints of the economically mature yet technologically innovative infrastructure market, Dell Technologies is well positioned for continued moderate growth at margins that allow it to reduce the debt incurred during its transformations. Public cloud continues to threaten infrastructure providers such as Dell Technologies, however, and while the company is pursuing all available remedies, the extent to which computing resources are concentrated governs its growth and margins.