Cognizant withdraws revenue guidance due to coronavirus

“IT vendors — especially those exposed to the most volatile sectors such as industrials / manufacturing, retail and travel — will see a challenging period, says Boz Hristov, Professional Services Senior Analyst, Technology Business Research.” — InfoTechLead

Indian IT sector may take a heavy hit as Covid batters US and Europe

“Boz Hristov, Professional Services Senior Analyst, Technology Business Research, Inc, said IT vendors — especially those exposed to the most volatile sectors such as industrials/manufacturing, retail and travel — will see a challenging period. The financial services sector will face headwinds, especially banking and capital markets, and less so insurance. This will further pressure Indian vendors that are significantly dependent on that sector, he added.” — The Hindu Business Line

Efforts underway to bolster cash flow in face of COVID-19 pandemic

“‘The contractors with more ‘progressive’ partnership/alliance strategies will be able to ‘unite the clans’ in their subcontractor network and quell any trepidation by sharing as much of the risk and the risk-management as possible,’ Technology Business Research Senior Analyst John Caucis told me. Caucis, who watches public sector IT for the market intelligence firm, pointed back to how that group of integrators has to varying degrees embraced alliances with technology providers of all sizes well before the COVID-19 crisis began.” — Washington Technology

New Dell hybrid cloud pricing offers VxRail by subscription

“Last summer, Dell rival HPE laid out a bold plan to transition its business into a software- and services-only operation by 2022 and it would do so, in part, by making its entire portfolio available through a number of different subscription-based, pay-per-use and as-a-service offerings. HPE also, however, said it planned to make its hardware and software available in a capital expenditure and license-based model, thereby giving users a choice in consuming HPE products and services in a more traditional offering. ‘This is a counterpunch being thrown at HPE, which is in the throes of transforming to a software and services company via subscriptions using Greenlake,‘ said Geoff Woollacott, senior strategy consultant and principal analyst at Technology Business Research. ‘[Dell is] trying to do the whole lifecycle management as part of the overall service.'”

5G will require new business models to make money

“According to a study conducted by Nokia and Technology Business Research (TBR), different markets will demand different types of services and operators will need to come up with a variety of cost structures if they want 5G to be profitable. ‘There are many big overarching variables that need to be factored into the ROI [return on investment] assessments,’ says Chris Antlitz, principal analyst with TBR. In particular, Antlitz says that operators need to consider a country’s spectrum requirements as well as its regulatory environment. And they also need to look at the gross domestic product (GDP) of the country and the disposable income of its residents.” — Futurithmic

Forecast: 5G to be widely deployed by end of 2022 + Check out market overview infographic

“TBR expects most Tier 1 and some Tier 2 and Tier 3 wireless operators will have begun deployment of 5G by the end of 2022. This will be driven by the need to add capacity to support growing data traffic and to tap into new revenue opportunities brought on by emerging use cases for the network that materialize in the 5G era. TBR expects new, economically supported use cases for the network will arise around 2022, which will drive the next wave of 5G investment.” — WRAL TechWire

Why the Sprint/T-Mobile merger could actually help the spread of 5G

“‘This merger is very beneficial for T-Mobile, but it’s also beneficial for the U.S., and where we currently are in the global race to 5G,’ said Steve Vachon, an analyst at Technology Business Research. ‘Now, the 5G plan is much more likely to go forward.'” — Digital Trends

Get ready for a major culture shift at IBM

“In a blog post, Merrill claimed that while CEOs typically come from a finance or sales and marketing background, the current market climate is one where expertise can help business leaders thrive. In IBM’s case, Krishna was previously the senior vice president of cloud and cognitive software at IBM and Whitehurst was senior vice president of IBM and CEO of Red Hat. ‘Krishna’s presence should assure customers, particularly those with primary concerns around IBM’s product road map and the ways in which IBM will build out the safe, secure and innovative ecosystems components for the new multi-enterprise business networks and company federations,’ Merrill said.” — ARN

IBM’s executive shakeup gets analysts’ stamp of approval

“Analysts have also chimed in with cautious optimism, including Geoff Woollacott, principal analyst and senior strategy consultant with TBR Cloud and Software. ‘The current climate is a different kind of IT landscape. The requirements and demands from enterprises are vastly different, which necessitates a different kind of leader. Arvind Krishna is, therefore, well suited to articulate and assure customers going forward,’ he told WRAL TechWire by email. Elitsa Bakalova, professional services senior analyst at TBR, added that it will bring a ‘fresh perspective.’ ‘Promoting the CEO from within is something that typically inspires employees and will prevent potential challenges related to future strategic direction of the company. The new CEO has a long history with IBM, he is a technologists and an operations expert,’ he said. Catie Merrill, research analyst at TBR, however, maintained a ‘wait-and-see’ approach. ‘IBM, with the help of Red Hat’s platform, is looking to take customers’ mission-critical back-office workloads to the cloud, in what it deems to be ‘Chapter 2 of the cloud’. This is a competency that has yet to be proven but may hold true under new leadership.'” — WRALTechWire

Quantum computing talent war: JPMorgan Chase poaches a top IBM exec

“JPMorgan Chase announced on Jan. 22 the hiring of Marco Pistoia from IBM. A 24-year IBM employee with numerous patents to his credit, Pistoia most recently led an IBM team responsible for quantum computing algorithms. Algorithm development will be key to developing soundly engineered quantum computing systems that can deliver the business outcomes enterprises seek at a faster and more accurate pace than current classical computing systems. A senior hire into a flagship enterprise in the financial services industry is the proverbial canary in the coal mine, as TBR believes such actions suggest our prediction of quantum achieving economic advantage by 2021 remains on target.” — WRAL TechWire