Big changes for Big Blue

Lots of news coming from IBM these past few weeks, and we have plenty of analysis on it from Geoff Woollacott, Stephanie Long, Elitsa Bakalova, Catie Merrill and Nicole Catchpole. IBM unveiled a new Power System and announced Ginni Rometty will be stepping down, making way for cloud champion Arvind Krishna to emerge as the new CEO, effective April 6. TBR’s 4Q19 IBM report will comment on these changes as well as touch on the overall health and performance of IBM corporate and its Systems Hardware business.

Additional assessments publishing this week from our analyst teams

“TBR estimates Wipro IT Services’ (ITS) revenue growth will accelerate in 2020, as the company leverages a broad network of centers opened throughout 2019, including centers dedicated to industry solutions and emerging technologies as well as centers that enhance core capabilities. An emphasis on centers will lead to cross-selling and upselling opportunities and improved client retention within Wipro’s addressable market. Additionally, increasing training and reskilling efforts will allow Wipro ITS to more effectively communicate its portfolio and manage client relationships to drive opportunities around its digital offerings. Wipro ITS’ ability to accelerate revenue growth will be contingent on securing deals around emerging digital assets — particularly through its now-robust cloud platform partner ecosystem — to expand its wallet share and mitigate its lack of digital scale compared to peers.” — Kelly Lesiczka, Analyst

“Recent acquisitions, such as that of Luxoft and Syscom, reinforce DXC’s focus on integrating acquired industry expertise into its distinct industry segments to create higher-value engagements and build longer-term relationships with clients. DXC will aim to capture technology demand in industries such as automotive, which aligns with industry strengths gained through strategic acquisitions such as Luxoft.” — Kevin Collupy, Analyst 

“Moving through 2020, Cognizant’s ability to create scale for its newly acquired digital solutions and services will be critical to driving growth, though its emphasis on digital will have an adverse impact on its traditional outsourcing business. We expect Cognizant will operate within its revenue guidance in 4Q19 as it emphasizes its digital portfolio to drive adoption of emerging technologies as well as looks to key verticals to generate use cases and drive growth opportunities.” — Kelly Lesiczka

“T-Mobile will end 2019 on a high note as the company’s annual postpaid net additions and adjusted EBITDA will surpass initial guidance expectations. T-Mobile’s momentum will continue in 2020 regardless of the outcome of the proposed Sprint merger, as the company’s widespread 5G coverage and expanding portfolio and service options will attract new customers.” — Steve Vachon, Analyst

In 4Q19 Google Cloud saw rapid revenue growth that paralleled and validated its continued and planned investments in infrastructure, R&D, talent, partnerships and expansion of its global footprint. TBR predicts this accelerated pace of growth, fueled by Google Cloud Platform and Anthos, will help the company close the gap with market share leaders Amazon Web Services and Microsoft. In addition, 4Q19 marks the first time that Alphabet disclosed Google Cloud revenue, a move that isolates and highlights the significant growth rate of this sector of the overall business. — Nicole Catchpole, Senior Analyst

On Wednesday Principal Analyst Ezra Gottheil and Analyst Eric Costa will host a live webinar and Q&A on TBR’s predictions for IoT in 2020 and beyond, including the more purposeful role of AI in IoT and how the conversational interface will demonstrate its relevance. Register today for “IoT settles in for the long haul,” and check out our Webinar Portal to view all of TBR’s previously aired webinars.

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