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Two Back, Three Forward: Growth in the Western Hemisphere

In our new weekly blog series Two Back, Three Forward, we look at two numbers in TBR reports from the prior week as well as three numbers from our upcoming reports, highlighting the analysis TBR provides and the vast amount of data — the numbers — we’re working with every day. It’s all about the data and what that data means to you.

Two Back

11, vendors profiled in TBR’s 1Q20 Enterprise Edge Compute Market Landscape. A newly launched product from TBR looks at the far edge of the edge compute spectrum, which is “also known as the local edge, new edge, network edge, mobile edge, multiaccess edge or distributed new edge.” Within the market landscape, senior analysts Nicole Catchpole and Stephanie Long examine recent developments and provide a SWOT assessment on vendors as diverse as Atos, Equinix and Microsoft. 

5, clients TBR visited with last week in New York City. In a bit of a whirlwind tour continuing the spring travel season, TBR shared parts of our Digital Transformation Insights portfolio, our soon-to-be-released digital delivery platform, and six big ideas challenging the consulting and IT services space in 2020. Surprisingly, no clients challenged TBR’s assertion that the term digital is dead, while the most lively (and heated) debate centered on the unchanging nature of the largest strategy consulting pure play firms.  

Three Forward

21.6%, ManTech’s year-to-year revenue growth in 4Q19: As detailed in our upcoming full report on the company, ManTech grew rapidly through a couple of key acquisitions, namely Kforce Government Solutions and H2M Group. The latter, which brought along $30 million in revenue and around 180 professionals, follows ManTech’s typical acquisition strategy, which focuses on new capabilities and/or agency access that the company has been unwilling or unable to gain organically. As the full report will note in a scenario on acquisitions, “H2M Group has an extremely deep relationship with the National Geospatial-Intelligence Agency and strong expertise in the geospatial industry as well as in intelligence collection and analysis and business operations support.”

65%, of customers in Latin America/South America have stayed away from adopting IoT solutions, according to IT services vendor Logicalis: Senior Analyst Boz Hristov traveled to Brazil to meet with Logicalis’ local and global leadership and hear their perspectives on the local market for both traditional IT services and emerging technologies such as cloud and IoT. Analyzing Logicalis’ solid credentials, well-established client base and willingness to take a riskier approach to outcomes-based pricing, TBR offers expectations around the company’s consulting, applications services and acquisitions in the special report available this week.

$389 million, Atos’ 4Q19 revenue within Big Data & Cybersecurity: The company’s leading service line for revenue growth saw contract wins across multiple geographies and industries, bolstered by a strategic decision to leverage ecosystem partners and expand its own capabilities simultaneously. In a scenario discussion in the upcoming full report, Senior Analyst Elitsa Bakalova explains how Atos has made substantial headway with cybersecurity offerings outside its core European market. By folding new offerings into its established and well-regarded Prescriptive Security Operations Centers, the company provides clients, in TBR’s assessment, “visibility, control and compliance.”

Cost of ‘intelligent connectivity’ must decline significantly for intelligent world to unfold

TBR perspective

Realizing the intelligent world presented by the mobile industry at Mobile World Congress Barcelona 2019 (MWC19) will require a fundamental change in how networks are architected, including a radical reduction in the cost of providing connectivity. It will also require business transformation for companies tied to the old world, namely communications service providers (CSPs) and their incumbent vendors.

It was readily apparent at the event that technology is advancing at a much faster pace than the establishment of business cases that economically justify deployment of the technology. The reality for the mobile industry is that the cost of building, owning and operating networks is too high and networks are too inflexible to support the business realities of the digital era, whereby connectivity is relegated to a commodity service and the value lies in the platforms and applications that run over the network. The industry has known this for years, but changes have been minimal, until maybe now.

The entrance of Rakuten to the mobile industry could be a game changer and provides a glimpse into what a digital service provider will look like. In what could arguably be the most important takeaway from the entire event, Rakuten’s approach to building and operating a network could signify a paradigm shift in the industry. Not only will Rakuten’s network be agile, flexible and dynamic to provide digital services, it will also enable a dramatic reduction in the cost of connectivity.

The theme of MWC19 was “intelligent connectivity” and centered on how 5G, IoT, AI and big data are coming together to enable the intelligent world. Against this backdrop, Rakuten stole the show with the evangelization of its end-to-end virtualized and cloud-native network, which is being deployed across Japan this year. Rakuten’s network provides a glimpse into what the intelligent network of the future will look like.