New Market Disruptors Tackle Microservices Network and App Management

C. Dunlap

Summary Bullets:

  • A new breed of San Francisco startups is addressing microservices connectivity issues head-on.
  • Infrastructure and cloud providers will integrate innovative service mesh technologies into management solutions this year.

A new crop of San Francisco startups is addressing a major sticking point among enterprise app modernization projects: the need for more lightweight connectivity solutions which address those points of intersection between apps and networks. Complexities around infrastructure implementations of modern architectures have finally taken their toll on app modernization projects within enterprises, stalling critical DevOps initiatives and prompting key OSS technologies to come to the forefront along with the disruptive innovators behind them. Continue reading “New Market Disruptors Tackle Microservices Network and App Management”

TPG Needs the Merger with VHA, and to Grow Business Customers

S. Soh

Summary Bullets:

• TPG is facing headwinds in growing its revenue and there is limited room to expand its margins. It needs to find new ways to grow its business.

• The merger with VHA will give TPG mobile capabilities and greater scale to compete with Telstra and Optus; but it also needs to pursue growth from the business segment.

TPG released its H1 FY2019 results in late March 2019. Total revenue for H1 FY2019 (ended 31 December 2019) declined 1.5% YoY to A$1.24 billion, but underlying EBITDA and NPAT improved 2.8% and 3.5% respectively. Revenue and EBITDA growth was mainly due to improvement in its Corporate division, but the growth was offset by the decline of Consumer division due to the DSL to NBN migration and iiNet home phone decline. Within Corporate, growth was mainly driven by the Vodafone Hutchison Australia (VHA) fibre contract (contributed A$22 million of growth), which will not deliver long-term growth. While TPG has not been able to grow its revenue in H1 FY2019 compared to the same period in the previous financial year, it has been successful in reducing costs to improve its margins including a reduction in employment and overhead costs. With the consumer market challenged by competition and NBN migration, there is limited upside. There is also limited room for further cost reduction, so business-as-usual is not an option for TPG. Continue reading “TPG Needs the Merger with VHA, and to Grow Business Customers”