worldwide | 2015 - computacenter
TRANSCRIPT
Worldwide | 2015
Computacenter - Vendor Profile - Worldwide
SITSI I Vendor Analysis I Vendor Profile
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Table of Contents
List of figures
Document information
PAC's Analysis
PAC's Opinion
Strategy Review
SWOT Analysis
Positioning in PAC's 2013 IT Services Rankings – Worldwide/by country
Main Changes 2013 / 2015
Hot News
Activities Analysis
Analysis of Products & Services
Analysis by Vertical Expertise
Top Accounts
Latest Deals & Projects
Mergers & Acquisitions
Performance Analysis
Financial Record
Breakdown of Worldwide Revenue
Breakdown of Worldwide SITS Revenue by Market Segments
Breakdown of Worldwide SITS Revenue by Vertical Sectors
Performance Review
General Presentation
General Information
Brief Description
Business Organization
About Pierre Audoin Consultants
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 2
List of figures
Horizontal Expertise of Computacenter
Software Product Portfolio of Computacenter
IT Services Portfolio of Computacenter
Vertical Expertise of Computacenter
Financials (as reported)
Total Revenue by Segments (PAC estimates)
Total SITS Revenue by Segments - Shares and Growth Rates (PAC estimates)
Total SITS Revenue by Vertical Sectors - Shares and Growth Rates (PAC estimates)
Business Structure for Computacenter
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Document information
Authors: George Mironescu ([email protected])
Quality check: Nick Mayes ([email protected])
Publication date: 31.07.2015
Modification date: 14.08.2015
Scope ID: Worldwide | 2015
Portfolio ID: SITSI I Vendor Analysis I Vendor Profile
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 3
Computacenter has been managed as a syndication of local autonomous entities, where the key rationalehas been to enable a business model based on intimate relationships with local customers and thecorresponding agility towards local client needs and market opportunities.
Keeping the geographical model in place fits well with the still fragmented nature of Europe anddifferences in culture and economic context for the three major European markets where Computacenteris present: the UK, Germany and France.
The Group Operating Model (GOM), which aims to create a common, group-level services, systems andtools framework that would increase transparency and consistency across the services operations, wascompleted in France in 2014. This creates the background for a more compact services organizationalstructure and a higher visibility into operations at country level. Belgium, as the fourth largest territory, wasplanned to start its GOM implementation later in 2015.
From a performance standpoint, UK has been the primary engine of growth for the services business, andrecent high-profile deals such as the Royal Mail and the Post Office show that the company is more thancapable of competing against higher-profile, global services organizations.
The services business grew in Germany as well, despite the decrease in overall revenue in the country.While the UK has been leading in services growth, Germany has a very interesting mix of capabilities,leading the group in its endeavors to grow the consulting and professional services practice, as well asspecialty capabilities such as cyber-security.
France has been a problem area for Computacenter for some time, marred by low service quality, poormanagement of the cost base, and a challenging base of business which was spread across too manysmall accounts. This is being addressed by the appointment of a new managing director from outside thecompany at the end of 2014 to re-build morale and gradually put the business back on its feet.
With regards to its services portfolio, Computacenter’s clear sweet spot is in workplace management. Itsinvestments in modernizing its helpdesk, device management outsourcing and IT infrastructure out-tasking service lines seems to have paid off and proven themselves in recent customer wins. It is wellplaced to take advantage of the next refresh cycle that will be driven by the arrival of Windows 10, withmany companies likely to use it as a springboard to transform the way they manage their desktop andmobile environments.
PAC's Analysis
PAC's Opinion
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 4
There are four major ‘Growth Plays’ as defined by Computacenter in its current strategy:
Next Generation Service Desk (NGSD)
Computacenter believes this is a key differentiator for them in the workplace management marketplace.With the rise of digital transformation and the empowerment of the business users, Computacenter thinksthey are in a strong position to take advantage of that, given their historic presence in end user devicemanagement.
Computacenter has invested in building a self-service-type of service desk portal where it seeks to reduceconventional helpdesk interactions though more automation and increased problem resolution based onuser discovery. While initially the solution is designed to address desktop environment needs,Computacenter is working to release the mirrored functionality in an app that would fit mobile scenarios.
Service desk is a big piece of Computacenter’s contractual services, hence ensuring their offering isrelevant and up to date with the digital trends is of critical importance for the company.
With NGSD, Computacenter seeks to drive up service productivity while increase both capacity and pricecompetitiveness of its existing network of service desk centers.
Mobility
Under this pillar, Computacenter seeks to grow its business around Mobile Device Management (MDM)and enterprise app stores. Currently the company is still building on its capabilities, but it boastsalready some early customer wins for mobility. Key to the Mobile strategy is Computacenter mobile engineaggregating four components: User Productivity (ie Email, Collaboration & ECM), Customer Engagement(ie CRM & Sales Operations), Employee/Manager Effectiveness (ie APIs to backend systems such as SAPand travel management solutions) and Line of Business Apps (similarly based on API management).
Security
With mobile device management, significant opportunities arise around securing the mobile computingfleets, both for professional services and managed secure device services. The potential areasComputacenter looks to address is fairly wide, including domains such as risk & compliance management,configuration & patch management, vulnerability & event management, security reporting, etc.
Cloud
Computacenter recognizes it makes little sense to try competing in the cloud hosting space given thetremendous thrust and scale global cloud companies have in this space. That is why its strategy aroundcloud is rather surrounding cloud support and cloud manage services for both private and public clouds.One good example is its strategy around providing configuration and support services for Microsoft-hostedOffice 365 solutions.
Computacenter is also seeking to grab opportunities in relation to cloud orchestration and architecture/re-architecture/integration of various data center environments.
Strategy Review
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 5
STRENGTHS WEAKNESSES
Strong local presence in key European countries (UK,
Germany, France)
Solid position as a reseller and in selected IT services
areas, so far mainly in the desktop and network
environment, but increasingly in the data center area as
well. Reselling business underpinned by very slick supply
chain operation.
One of the leaders in workplace management in the UK &
Germany
Company culture: entrepreneurial, customer-centric,
customer intimacy
Maintains strategic distribution and
maintenance relationships with key IT infrastructure
vendors
Heavy reliance on third-party product re-selling, which is a
highly commoditized business and exposed to substantial
pressure on margins
Still restrictive image of being a hardware reseller and
low-end desktop services supplier (maintenance /
support), though improving
Very limited application-related offering, so far still under-
represented in hosting environments
Limited scope for growth in Computacenter's primary
market, desktop support services
OPPORTUNITIES THREATS
Cloud computing opens up opportunities around systems
implementation and service provisioning
Virtualization and the move towards remote infrastructure
management
Cybersecurity and mobility, in line with the adoption of
Cloud Infrastructure
The move away from single-sourcing towards multi-
sourcing in infrastructure management services in certain
large accounts
With the emergence of Cloud, the entry into the
infrastructure management services space of fierce new
providers (Google, Amazon, telcos) coupled with the
increasing importance of scale in computing
Hardware market shrinking in certain categories, to a
large extent as a result of the IT infrastructure automation
and self-servicing from Cloud
Indian IT services offshore providers pushing more
aggressively into the infrastructure management space
Continued decline in margins in commoditized
infrastructure services, and especially rapidly eroding in
the resell business
SWOT Analysis
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 6
REGION/COUNTRY RANK MARKET SHARE
Germany # 8 1.6%
United Kingdom # 17 1.4%
Only countries considered, in which the profiled company appears in our standard SITSI vendor rankings.
Positioning in PAC's 2013 IT Services Rankings – Worldwide/by country
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 7
Feb 2015
Kevin James, formerly Director of Solutions & Services, is appointed Managing Director for the UK,
taking over Muller's responsabilities
Neil Hall, previously in charge of Contractual Services Sales (including Service Design and
Governance) in Germany, expands responsabilities to include the UK too
Nov 2014 Neil Muller announced his departure as UK Managing Director after 20 years with the company
Oct 2014
Isabelle Roux-Buisson is brought in from HP as Managing Director France, taking over the
responsabilities for the French operation from Mike Rodwell, Group COO, who had to temporarily
cover the role following the departure of Henri Viard at the end of 2013
Jan 2014Michael Weiss, formerly Director Commercial Management Germany, takes on the role of Head of
Group Strategy & Marketing
H2 2013 Reiner Louis is appointed to manage the operations in Germany
Main Changes 2013 / 2015
Hot News
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 8
Cross-sectoral assessment considering the market shares in the respective segments. Scale: 10 = > 5%, 9= 2.5 to 5%, 8 = 1 to 2.5%, 7 = 0.5 to 1%, 6 = 0.25 to 0.5%, 5 = 0.1 to 0.25%, 4 = 0.05 to 0.1%, 3 = 0.025to 0.05%, 2 = 0.01 to 0.025%, 1 = < 0.01%, empty space = company not present in the respectivesegment.Market shares have been calculated at EMEA level.
Horizontal Expertise of Computacenter
Activities Analysis
Analysis of Products & Services
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 9
Cross-sectoral assessment considering the market shares in the respective segments. Scale: 10 = > 5%, 9= 2.5 to 5%, 8 = 1 to 2.5%, 7 = 0.5 to 1%, 6 = 0.25 to 0.5%, 5 = 0.1 to 0.25%, 4 = 0.05 to 0.1%, 3 = 0.025to 0.05%, 2 = 0.01 to 0.025%, 1 = < 0.01%, empty space = company not present in the respectivesegment.Market shares have been calculated at EMEA level.
Cross-sectoral assessment considering the market shares in the respective segments. Scale: 10 = > 5%, 9= 2.5 to 5%, 8 = 1 to 2.5%, 7 = 0.5 to 1%, 6 = 0.25 to 0.5%, 5 = 0.1 to 0.25%, 4 = 0.05 to 0.1%, 3 = 0.025to 0.05%, 2 = 0.01 to 0.025%, 1 = < 0.01%, empty space = company not present in the respectivesegment.Market shares have been calculated at EMEA level.
Software Product Portfolio of Computacenter
IT Services Portfolio of Computacenter
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 10
Vertical Expertise: Sector-specific assessment considering individual solutions & resources. Scale: 9-10 =very strong sector-specific expertise, 7-8 = strong sector-specific expertise, 5-6 = medium sector-specificexpertise, 3-4 = weak sector-specific expertise, 1-2 = cross-vertical expertise only, 0 = company notpresent in the respective segment.SITS Market Share: Sector-specific assessment considering the SITS market shares in the respectivesectors. Scale: 10 = > 5%, 9 = 2.5 to 5%, 8 = 1 to 2.5%, 7 = 0.5 to 1%, 6 = 0.25 to 0.5%, 5 = 0.1 to 0.25%,4 = 0.05 to 0.1%, 3 = 0.025 to 0.05%, 2 = 0.01 to 0.025%, 1 = < 0.01%, 0 = company not present in therespective segment.Market shares have been calculated at EMEA level.
Vertical Expertise of Computacenter
Analysis by Vertical Expertise
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 11
SECTOR MAJOR ACCOUNTS
ManufacturingRolls-Royce, Daimler, BMW, AstraZeneca, BASF, Sanofi, EADS, BAT, Wacker,
Air Liquide
BankingLloyds Banking Group, Barclays, Schroders, SWIFT, Visa Europe, Deutsche
Borse
Insurance NFU Mutual
Public Sector
Foreign & Commonwealth Office, Bundesministerium des Innern, Bundesamt
für Informationsmanagement und Informationstechnik der
Bundeswehr, Ministere de la Defense
Telecom Vodafone
Utilities RWE/NPower, EDF, Severn Trent Water
Retail & Wholesale John Lewis Partnership/Waitrose, Morrisons
Services & Consumers Eversheds, Channel 4, SAP, Serco
Transport Transport for London, Network Rail, SNCF
Top Accounts
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 12
SECTOR / CUSTOMER LATEST DEAL & PROJECT
ManufacturingJan 2015 - AstraZeneca - three-year on-site IT services support deal covering
51,500 users in the UK, France, Germany, the US and Scandinavia
Banking
Q1 2014 - SWIFT - five-year renewal of its global desktop support contract; the
deal is a renewal based on a 2009 agreement, and covers the centralised
service desk with incident management, request and problem management
services, asset management and on-site support; the renewal includes the
transfer of part of the support operations to Malaysia
Insurance n/a
Public Sector2014 - KV Hessen - design and deployment of a private cloud environment
hosting over 100 business applications for the medical association of Hessen
Telecom n/a
Utilities n/a
Retail & Wholesale n/a
Services & Consumers2014 - Axel Springer SE - mobile workplace contract covering product
support, hardware testing, administration and rollout
Transport
Jan 2015 - Royal Mail Group - desktop services contract covering 30,000
users; besides distributed desktop services, the deal includes provisioning
of service desk and a security operations support centre
Dec 2014 - Post Office - managed private cloud contract estimated to value in
excess of £100 million; under the terms of the deal, Computacenter will
refresh legacy equipment, provide migration and support services around a
new workplace platform based on Office 365
Feb 2014 - Network Rail - five-year workplace transformation and
modernization program covering the replacement of 27,000 end user devices.
While Network Rail has been working with Computacenter since 2002, the
new agreement becomes the most significant contract to date between the
two parties.
Latest Deals & Projects
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 13
ACQUISITIONS DISPOSALS
No acquisitions in the past 24 months
Feb 2015 - R.D. Trading Limited (RDC) - UK-based
company specializing in IT Disposal and Asset Recovery
Services, sold for £56m
Mergers & Acquisitions
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 14
Financials (as reported)
Performance Analysis
Financial Record
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 15
Total Revenue by Segments (PAC estimates)
Total SITS Revenue by Segments - Shares and Growth Rates (PAC estimates)
Breakdown of Worldwide Revenue
Breakdown of Worldwide SITS Revenue by Market Segments
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 16
For detailed figures, please refer to the Company Figures file (Excel).
Total SITS Revenue by Vertical Sectors - Shares and Growth Rates (PAC estimates)
Breakdown of Worldwide SITS Revenue by Vertical Sectors
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 17
MAJOR GROWTH DRIVERS MAJOR OBSTACLES
Strong contract (services) base in the UK and Germany in
2014 on the back of workplace management
modernization programs with clients in these countries
Selective out-tasking and single tower managed desktop
outsourcing, especially in the UK market
Professional services (largely design and implementation)
triggered by internal and hybrid cloud setups, as well as
mobile device management, with mid to large enterprise
customers
Service desk management in relation to the
transformation of the workplace, where more service
management becomes more digital and more automated
Cost reduction and consolidation of desktop management
operations/ rationalization of suppliers at certain large
customers with Computacenter benefitting from these
market conditions
The restructuring of the French operation (as part of the
effort to increase productivity and competitiveness of the
unit) led to a temporary disruption of the daily operations
and financial performance
Price pressure on very basic services such as field
services support and hardware maintenance, particularly
in France where the business has been lagging behind in
terms of service portfolio sophistication and quality of
service
Performance Review
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 18
Computacenter Plc Management
Hatfield Avenue, Hatfield
Hertfordshire AL10 9TW, UK
Tel: +44 1707 631 000
www.computacenter.com
(http://www.computacenter.com)
Mike Norris (Group Chief Executive Office)
Tony Conophy (Group Finance Director)
Chris Webb (Group Chief Operating Officer)
Mike Rodwell (Group Chief Commercial Officer)
Michael Weiss (Head of Group Strategy & Marketing)
Kevin James (Country Unit Director UK)
Reiner Louis (Country Unit Director Germany)
Isabelle Roux-Buisson (Country Unit Director France)
Lieven Bergmans (General Manager Benelux)
Massimiliano D’Auria (CEO Switzerland)
Barry Hoffman (Group HR Director)
Mark Slaven (Group CIO)
Fraser Phillips (Head of Group Legal and Contracting)
General Presentation
General Information
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 19
Computacenter is an independent provider of IT infrastructure services. It was founded in 1981 by PhilipHulme and Peter Ogden and floated on the London Stock Exchange in May 1998. It has since grown tobecome a company of over 12,000 employees with offices in the UK, Germany, France, Belgium andSwitzerland. It has offshore centres in Barcelona, Kuala Lumpur, Budapest and Cape Town, as well asfacilities delivered through partners in North America (Dallas and Pittston) and India (Bangalore). Thecompany is best known for procuring, deploying, and managing a large range of hardware and softwareinfrastructure products.
Much of Computacenter’s business was built through acquisitions. A major milestone in Computacenter’sevolution was in 2003 when it acquired German infrastructure reseller and services provider GECompuNet, boosting the business from £1.9 billion in 2002 to a bit under £2.5 billion in 2003. Theacquisition has been particularly instrumental for growing the business in Europe and lessening thedependency on the UK market.
As part of Computacenter’s efforts to climb up the IT services value chain, in 2006 it acquires Digica, an ITinfrastructure and application services firm, to increase presence in the data center space, both in the UKas well as off-shore (in Cape Town, South Africa).
In 2007, the company buys Allnet, the network integration and structured cabling arm of Cable & Wireless,as part of its push to build capabilities in data center and network computing.
In 2009, Computacenter makes two other notable acquisitions: Thesaurus Computer Services in the UK,reinforcing its IBM mainframe business (z series), and becom, a former reseller of IBM mid-range andmainframe systems, in Germany.
In 2011 Computacenter buys IT distributor and services provider Top Info to increase operations withlarge commercial and institutional accounts in France. In the same year the company takes over HSDConsult, a system integrator for Apple products, and enters Switzerland with the acquisition of localsubcontractor Damax.
Acquisition strategy continued in 2012/2013, as Computacenter announced at the beginning of 2013 thetakeover of Informatic Services IS, an 80-people IT infrastructure services firm covering mainly the Belgianmarket.
Brief Description
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 20
Computacenter’s go-to-market model is designed primarily by country, with each of the major territoryreporting directly to the CEO. The operating model is designed to give the local subsidiaries a high level ofautonomy in order to stay agile and responsive to customer demands.
There is nonetheless an aggregation layer between the country units and the CEO with a role to providegroup-level steering, strategy and leadership. Chris Webb in the position of Chief Operations Officer andMike Rodwell in the position of Chief Commercial Officer are critical positions flanking CEO Mike Norris.Group Commercial is handling the supply chain management operations, while Group Operations is incharge of professional services & contractual services (e.g. service desk, infrastructure operations, projectmanagement).
The Contractual Services organization managing the UK and Germany has been elevated as a standalonediscipline in the executive board in line with the efforts of Computacenter to grow its long-term servicesbusiness.
Business Structure for Computacenter
Business Organization
SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 21
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SITSI | Vendor Analysis | Vendor Profile | Computacenter | Worldwide | 2015 22