COVID-19 and IT: Pains, changes, pockets of opportunity

COVID-19 creates pain, change and even pockets of opportunity for the IT industry

There is still a fog of uncertainty around COVID-19’s impact. What is clear, however, is this outbreak is unlike any event in living history. The long-term health crisis, economic disruption and social disruption are occurring at levels that were unfathomable just months ago. These changes are taking place in a world that is much different from when the last widespread pandemic, the Spanish flu, hit more than 100 years ago. Technology has become such an integral part of our lives since that time and, as such, will be deeply ingrained in many of the short-term and long-term effects of the COVID-19 virus.

While most of the market effects will be painful due to the economic disruption occurring, many will lead to changes in long-held business strategies and create opportunities as technology needs shift for both individuals and organizations. Find out more on this topic in a recent TBR special report, and contact us today to discuss COVID-19’s potential impact on your business.

Excerpts from additional reports recently published by TBR’s analyst teams

4Q19 HP Inc.: Takeover threat remains as revenue falls from soft print market

HP Inc. revenue declined in 4Q19 as a softer printing market offset single-digit growth in Personal Systems. To return to growth, the company is executing an aggressive cost-reduction strategy and a three-year value creation plan, while continuing to combat hostile takeover attempts from Xerox.

1Q20 Oracle Cloud Initial Response

Oracle experienced its highest growth rate in two years as the company gains further momentum around its ERP Cloud and Autonomous Database offerings, suggesting Oracle is shedding its legacy ties and migrating toward a subscription-led revenue model.

4Q19 Salesforce: Leveraging partners and acquisitions to expand TAM

Salesforce drives revenue growth with industry-specific apps, multiproduct deals and inorganic revenue contribution from acquisitions. However, gross margin improvements were offset by Dreamforce-related expenses and costs related to the acquisitions, such as R&D, resulting in an operating margin decline.

4Q19 VMware, Inc.: Container strategy in full swing

With the Pivotal acquisition now complete, VMware enters 2020 prepared to execute on its container strategy and spark growth around Tanzu and other “as a Service” portfolio offerings as the company continues its shift to a SaaS-led revenue model.

4Q19 Dell Technologies: Embracing ‘better together’ at the channel level

Dell Technologies leaned on strong VMware performance and growth in both commercial and consumer PCs to keep corporate revenue growing, as the Infrastructure Solutions Group continued to suffer from a weak server market.

4Q19 Dell Technologies Services: Benefiting from upsale of profitable attached services

Dell Technologies Services is leveraging its simplified and streamlined services portfolio around repeatable and standardized services offerings to improve service attach rates and generate predictable and profitable revenue streams.

1Q20 Accenture Initial Response

While record-breaking bookings in FY2Q20 provide a strong foothold, investing in leadership and security offerings to maintain clients’ trust in the COVID-19 era will test Accenture’s new growth model.

1Q20 Accenture Cloud Initial Response

As Accenture strives to maintain a strong brand for multicloud management opportunities through its certified cloud delivery bench and the launch of myNav, the global coronavirus pandemic will test its ability to succeed.

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