IoT is not a technology or a market, but it certainly drives revenue
TBR estimates the contribution of commercial IoT to the overall IT market will increase from $456.1 billion in 2019 to $1.7 trillion in 2025, a CAGR of 24.9%. IoT is not a technology or a market, but a technique for applying IT components, made more relevant by the increased ease of connecting sensors and collecting and processing data. It serves as a tool in the larger toolbox of traditional IT solutioning. As vendors and customers move beyond the stigma that IoT is exotic, untested and expensive and begin to understand that IoT is just an iteration of everyday IT solutioning, IoT is being implemented at an increasing rate, albeit slowly and steadily. While these projects are generally smaller, as customers leverage IoT to solve targeted problems and prove ROI, they are set to grow over time and expand into parallel projects, contributing long-tail revenue to vendors that are amenable to projects that are smaller in scope.—Dan Callahan, Analyst (See his special report here.)
Additional assessments publishing this week from our analyst teams
TBR’s 2Q19 Hewlett Packard Enterprise (HPE) initial report dives into the recent infrastructure-centric developments within HPE. This particular report will discuss in detail HPE CEO and President Antonio Neri’s pledge to offer everything “as a Service” by 2022 and the ongoing cloud-centric developments the organization has been making to better address the needs of digital transformation. Edge computing is another focus of the vendor, which TBR will touch upon in the initial response and examine more deeply in the full report. — Stephanie Long, Analyst
Leveraging acquisitions to strengthen vertical expertise and product offerings improves HCL Technologies’ (HCLT) competitive position relative to peers. HCLT benefits from the addition of market expertise as well as headcount to support its transformation initiatives. Through inclusive training programs, HCLT equips its existing employees to work with digital technologies in the vertical areas.
— Kelly Lesiczka, Analyst
Partnering with technology-led vendors enhances growth segments and will help T-Systems generate revenue growth. However, as the company is slow to reorganize and adopts IFRS 16, profitability continues to struggle. — Lesiczka
DXC Technology reinvests savings from automation and facility rationalization to help fund the costs related to attracting and retaining higher-value resources skilled in industry, consulting and/or emerging technology areas. We expect substantial inorganic revenue boosts beginning in 3Q19; however, margins will be pressured in the short term as integration costs mount from the Luxoft acquisition. — Kevin Collupy, Analyst
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