TBR’s Business Insights

Skills Shortage Will Challenge the Scaling of Sovereign AI in 2026

02.20.26

AI-related skills will remain scarce across both buyers and ecosystem partners as the rapid pace of innovation and the technical complexity required to enable sovereign AI continue to hinder adoption. These challenges, combined with a lack of clearly defined and compliant use cases among sovereign customers, gaps in sovereign cloud infrastructure availability and steep AI learning curve faced by ecosystem partners, will constrain meaningful investment and implementation of sovereign AI throughout 2026.

PaaS Revenue Will Outpace SaaS Revenue for Cloud Software Vendors

02.17.26

Enterprise customers are prioritizing the modernization of their existing SaaS estates rather than adding new applications, driven by market saturation, accumulated technical debt, and a growing imperative to become AI-ready. As IT buyers shift their focus toward modern platforms, traditional SaaS leaders should expect their PaaS segments to continue significantly outperforming their core SaaS businesses in revenue growth.

Dee Angela, Canva Pro

Alliances Will Extend Beyond Core Offerings as AI-driven Sales and Marketing Reshape Ecosystems

02.12.26

IT services companies have their limits, and clients have preferred technology vendors, leading IT services companies to look to alliances to drive new growth. We have seen this pattern before, but in 2026 we will see IT services companies extend those alliances into devices, connectivity and even silicon, requiring a multiparty alliance approach that will strain commercial models, sales strategies and alliance leaders across the ecosystem.

Consulting Will Rebound in 2026

02.10.26

After a period of relative softness, consulting revenues are expected to rebound to high-single- or low-double-digit growth as pervasive uncertainty pushes enterprises to seek external guidance. Demand will be particularly strong around risk mitigation, strategic planning and AI adoption, positioning forward-deployed engineers, supply chain management and people advisory services as leading revenue drivers in 2026.

Bad Debt Expenses Will Rise for CSPs in 2026

02.06.26

In a K-shaped economy that increasingly separates financial winners from losers, the majority of households and businesses on the lower arm of the “K” are under mounting financial strain and are finding it more difficult to pay their bills. As these economic pressures persist, communications service providers (CSPs) should expect bad debt expenses to continue rising, with the potential to meet, or even exceed, levels experienced during the Great Recession.

How Will Advanced AI Impact Pricing, Labor Practices and Client Expectations?

02.05.26

Advanced AI may be front and center in IT services strategy, but execution challenges remain a familiar story. Despite ongoing hype around unlocking new efficiencies and nonlinear growth, IT services firms continue to grapple with the reality of needing labor arbitrage in the short term and meeting client expectations.

Gustavo Quiroga Gaitan, Canva Pro

AI Alliances Will Increasingly Target OT

02.03.26

New and expanding partnerships are increasingly targeting the convergence of IT and OT, as system integrators (SIs) align with OEMs, manufacturing ISVs and silicon providers. This momentum is driven by the strong growth potential in high-tech manufacturing, where solutions that improve accuracy, efficiency and safety can be deployed on-site without reliance on rack-scale compute systems in neoclouds or Tier 1 clouds. As a result, while AI has long operated at the edge, these partnerships will accelerate both the sophistication of AI-driven use cases and the pace of solution framework development.

Agentic AI Adoption Is Pressuring Security Architectures to Converge

01.29.26

The emerging pattern of multicloud security consolidation has direct implications for both Amazon Web Services (AWS) and Microsoft, as enterprises reassess detection pipelines, governance models and operating frameworks heading into 2026. Although AWS remains well positioned in analytics-heavy workloads, the company needs to reevaluate its long-established “building block” approach, especially as peers deliver more integrated platforms. For Microsoft, its strengths will continue to be with organizations where Microsoft 365 already anchors their identity and collaboration strategies.

Saitharn, Getty Images via Canva Pro

The U.S. doesn’t have a Spectrum Shortage — It has a Utilization Problem

01.13.26

The mobile industry continues to beat the drum for more spectrum, but it should instead focus on fully utilizing the spectrum already allocated. TBR notes there are vast tranches of spectrum in the U.S. market that are broadly underutilized, either for technical or economic reasons. And challenges will only worsen as the industry aims to bring upper midband frequencies into the fray, which have greater propagation challenges and are less suited for macro coverage.

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Salesforce to acquire Tableau as the market moves to no-code and low-code environments

06.12.19/by Allan Krans, Practice Manager and Principal Analyst

Salesforce’s acquisition of Tableau Software would make additional data visualization and analytics capabilities available to business users Salesforce announced its intent to buy Tableau Software in an all-stock deal valued at $15.7 billion, in which Salesforce will exchange 1.103 shares of its common stock for each of Tableau’s Class A and Class B common stock. […]

TBR’s Quantum Computing Market Landscape details emerging uses cases, economic disruption and alliances

06.10.19/by admin

TBR’s first Quantum Computing Market Landscape focuses on multiple facets of the quantum computing market, exploring the vendor landscape of a variety of competing hardware vendors with differing quantum theories, as well as software services and security vendors playing in the quantum computing space. Emerging customer sentiments, as well as recent alliances, emerging use cases […]

Integration challenges ahead for Perspecta and SAIC as federal sector IT services vendors position for the rest of 2019

06.04.19/by admin

Publishing this week from TBR’s federal IT research program are our initial assessments of SAIC’s and Perspecta’s 1Q19 earnings performances. Perspecta is wrapping up its first complete fiscal year as an independent business entity. Its inaugural year has been characterized by significant challenges integrating a trio of large-scale legacy federal IT competitors, and we expect […]

Booz Allen Hamilton keeps winning, even when the government shuts down

05.29.19/by admin

TBR’s initial response to Booz Allen Hamilton’s (BAH’s) 1Q19 earnings published on Tuesday, and we expect another strong quarter from BAH to close out its FY19. BAH boasts a soundly differentiated market position and multilayered alignment of its technology and advisory portfolio with the primary objectives of its federal customers. Consulting-led offerings are increasingly interwoven […]

TBR Weekly Preview: May 20-24

05.21.19/by admin

Before the long weekend here in the U.S., our teams will be publishing deeper analysis on some of the vendors that released earnings earlier this quarter. As always, our approach starts with the individual companies, then builds to an understanding of the larger market. Additionally, don’t miss this Wednesday’s webinar Bringing the best: Talent and […]

HPE buys Cray: Is this the definition of insanity?

05.17.19/by admin

We know Moore’s law drives consolidation in the industry. What we do not know, however, is if any two hardware-centric vendors can come together and build a business accretive to the top line. Michael Blumenthal tried this strategy by combining Burroughs and Sperry to create Unisys, and that certainly did not work. More recently Dell […]

Kick-starting innovation takes smart thinking, not just action

05.17.19/by Patrick Heffernan, Practice Manager and Principal Analyst

An innovation leader at a fast-growing Europe-centric consultancy shared with me tactics his firm uses to make its innovation engagements creative and pragmatic, with principles centered on adding real business value while capturing as much opportunity as possible for meaningful change. First, pick one area to innovate, based largely on where you can expect value […]

TBR Weekly Preview: May 13-17

05.14.19/by admin

As we move further into May, we will shift from initial earnings reports to larger, detailed reports on the vendors we cover, plus the benchmarks and market forecasts for the broader areas, such as cloud and telecom. And definitely do not miss Wednesday’s webinar on digital transformation. Monday The IBM Cloud report highlights how cloud […]

Off the road and on your screen: A webinar featuring our latest look at digital transformation

05.13.19/by Patrick Heffernan, Practice Manager and Principal Analyst

Seven of the last nine weeks spent traveling has included an incalculable number of meetings and countless great stories, ranging from ground-breaking IoT solutions and stand-out blockchain presentations to a surprising utilities-selection app. All the events confirmed, for me, that we’re on the right track with how TBR has structured its research and analysis around […]

TBR Weekly Preview: May 6-10

05.07.19/by admin

We are still cranking through our initial analysis of vendors’ earnings for the first quarter, with more detailed analysis available two weeks after the announcements. Monday Growth of Wipro IT Services’ (ITS) emerging business lines, such as Digital Ops and Platforms, shows recent investments are paying dividends; however, steep declines in its legacy outsourcing […]

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