DXC Technology Considers Divesting Non-Core Units After Reporting a Multi-Billion Quarterly Loss

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

• In the same month DXC announced two new acquisitions, the company said it is may sell off three non-core business units

• DXC wants to invest the proceeds to strengthen its core IT outsourcing business

Less than two months after assuming the role of President and CEO at DXC, Mike Salvino made waves when he told financial analysts on an earnings call the company is considering the sale of non-core business units. Saviano said executives are looking seriously at divesting three organizations: Workplace & Mobility; U.S. State and Local Health Human Services; and Horizontal Business Process Services. This comes as DXC posted dismal Q2 FY 2020 earnings that saw revenues slide 3.4% versus the same quarter a year ago. Continue reading “DXC Technology Considers Divesting Non-Core Units After Reporting a Multi-Billion Quarterly Loss”

AWS and Oracle Protest Microsoft’s Surprise $10 Billion Pentagon JEDI Contract Win

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

• Microsoft’s JEDI win after an often controversial procurement process that many said favored AWS caught the industry off guard

• Arguing that the process was tainted by Department of Defense (DoD) employee conflicts of interest and political interventions, Oracle and AWS are both contesting the procurement in court

The DoD sent shockwaves through the cloud computing sector in October with the announcement that Microsoft Azure had won the multi-billion single award Joint Enterprise Defense Infrastructure (JEDI). Cloud behemoth AWS, long considered to be the one to beat in the closely watched and often controversial process, expressed surprise at the outcome. Some insiders have suggested that challenges during the bidding gave Microsoft the time to pull together a more cohesive and competitive cloud play. But others, including Oracle, a one-time competitor for the deal, are calling out the process as inherently unfair.
Continue reading “AWS and Oracle Protest Microsoft’s Surprise $10 Billion Pentagon JEDI Contract Win”

5G Use Case Demos: How Different Operators See the Future

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• At Mobile World Congress Americas and at the AT&T Business Summit, Verizon, Sprint, and AT&T showcased their latest (or their splashiest) planned 5G use cases.

• While many of these applications are still in trial mode, they demonstrate the kinds of use cases key operators envision will be possible and compelling as 5G become ubiquitous enough for enterprise adoption.

At recent events, including Mobile World Congress Americas and the AT&T Business Summit, operator booth demos were dominated by 5G use cases, probably because they make the splashiest demos and point to the future of what may be possible rather than the more sedate set of offerings in the market today.
Continue reading “5G Use Case Demos: How Different Operators See the Future”

Edge Computing Will Underpin Long-Term Digital Transformation Strategies

G. Barton
G. Barton

Summary Bullets:

  • Edge computing can enable a wide range of technologies as part of a digital transformation program.
  • Edge computing supports low-latency services and offers new ‘branch in a box’ capabilities.

AT&T’s 2019 Business Summit had a big focus on edge computing. AT&T offers a convincing vision with use cases for both its multi-access edge compute (MEC) and network edge compute (NEC) platforms. However, the questions from the enterprises present at the event suggested that many are uncertain about what edge computing means and what it may offer their businesses. This is unsurprising, as the majority of service providers are still developing their own models for deploying edge compute capabilities, let alone offering fully formed go-to-market models. Continue reading “Edge Computing Will Underpin Long-Term Digital Transformation Strategies”

AI in the Contact Center: Why and How?

Gary Barton – Analyst, Business Network and IT Services

Summary Bullets:

• Most enterprises agree that AI delivers benefits – but not necessarily the benefits they expected

• AI projects require clear goals and a dedicated project management team, as well as external advice

GlobalData’s research into AI includes talking to enterprises about how and why they are using AI-powered technologies in the contact center. This research has given light to a number of key trends, and also highlighted examples of best practice.

What Technologies Are Being Used?

GlobalData’s research shows that, perhaps unsurprisingly, AI-powered chatbots are the most prevalent use case for AI in the contact center. The use of text-based chatbots on websites is now common, but GlobalData’s research suggest that voice-based chatbots are more of a focus for enterprises. Cost reduction is a key reason for this, particularly for contact centers in North America and Europe. But chatbots also deliver the potential for increased customer service with the potential for quicker response times to more simple inquiries. Continue reading “AI in the Contact Center: Why and How?”

Survey Results Indicate Strong Investment in AI by Banking, Financial Services, and Insurance Sectors

R. Bhattacharyya

Summary Bullets:

  • Organizations in banking, financial services, and insurance are more likely to prioritize current and future investment in AI than overall survey respondents.
  • AI-driven solutions can help the sector verify customer identification and assist with fraud detection as well as anti-money laundering and know-your-customer initiatives.

Banking, financial services, and insurance organizations are eager to leverage AI solutions such as chat bots, deep learning, and machine learning. According to GlobalData’s most recent IT Customer Insight survey, organizations in this sector are more likely to be prioritizing investment in AI technology than their counterparts across other vertical industries. As shown below, 63% of respondents in banking, financial services, and insurance currently prioritize investments in AI, compared to only 54% of companies across all vertical markets. Similarly, 64% of financial services, insurance, and banking organizations have prioritized AI for investment in the next two years, versus only 55% of overall survey respondents. Continue reading “Survey Results Indicate Strong Investment in AI by Banking, Financial Services, and Insurance Sectors”