Managing complexity creating and empowering data thanks to software

Managing complexity | Creating and empowering data thanks to software

Gregory Ramirez | Equity Research Analyst, Software & IT Services

Software-as-a-service (SaaS) no longer has anything to prove. In North America, 60% of the top 90 software market caps have a native SaaS model. This huge success stems from its clear profitability: 9 out of the 10 largest SaaS firms are profitable. For their part, SaaS customers benefit from the flexibility of this business model: they can simply adjust the cost of consumption to the level of their business. SaaS arrived later in Europe due to reluctance around public cloud, but organizations on the continent are catching up with the US as the need to digitally transform their business has triggered strong demand for cloud-based IT solutions. In that context, traditional software vendors have started and even accelerated the transformation of their business model to SaaS and subscription at the expense of perpetual licensing, generating intense competition in the software industry. The related explosion of data has also opened the way for a new generation of data analytics available in the cloud.

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SOFTWARE NEWSLETTER:
SOFTWARE OPPORTUNITIES: LIFE DURING AND AFTER COVID-19 IN THE SOFTWARE MARKET
ITSM INDUSTRY REFERENCE REPORT: BEYOND IT SERVICE MANAGEMENT


OPINION PIECE: SOFTWARE: DEBUNKING THE MYTH
OF A VALUATION DISCOUNT –
EUROPE VS. THE US
VIDEO: SAAS AND THE VIRTUOUS CIRCLE OF SUBSCRIPTIONS
VIDEO: THE NEW FRONTIER OF SERVICE MANAGEMENT

B2B telecoms at the core of enterprise digital transformation

B2B Telecoms | At the core of enterprise digital transformation

Thomas Coudry | Managing Director, Telecoms & Media

Mainstream telecom operators have had a hard time monetizing heavy investment over the last 10 years, resulting in less attractive profiles for investors. However, in the midst of a depressed sector, the B2B telecom sub-segment offers highly attractive growth opportunities and deserves greater attention from investors in our opinion. As corporates digitalize, technological migrations are opportunities for alternative B2B players to take market share from incumbent operators and deliver double-digit organic growth. Adjacent services such as cloud or cybersecurity, as well as new technologies such as VoIP, unified communications, fibre and SD-WAN, are all challenging legacy services and providers and opening opportunities for smaller players. M&A is set to continue in the sector as investors look for recurring revenue and growth. At the same time, all B2B operators are seeking to accelerate their development, gain scale in distribution or with their services portfolio, and seize the growth opportunities presented by technology transformation.

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WHITE PAPER: GAME CHANGERS FACING B2B TELECOM OPERATORS: THE OUTSIDERS STRIKE BACK
EQUITY SECTOR REPORT:ILIAD B2B IMPACT: GET READY TO RUMBLE!

Protecting data security

Protecting Data | Security

David Vignon | Equity Research Analyst, Software & Payments

The Covid pandemic has led organizations to embrace new technologies at a faster pace than ever before. This emergence of increasingly distributed IT infrastructure, along with the explosion in its diversity and scale has greatly increased vulnerability to attacks. As a result, cybersecurity has become more critical for governments and corporations alike. In this USD 130 billion industry, we see the unavoidable shift towards proactive cybersecurity continuing to gain momentum, to the benefit of intelligence-led security solutions. At the same time, the need for automation tools and managed services, notably managed detection and response, will continue to increase as a way of dealing with the talent shortage in the industry. Consolidation is also likely to be a theme. Corporate security organizations are being revamped to remove information silos, while security solution providers are working on Extended Detection & Response (XDR) and Secure Access Service Edge (SASE), which better integrate several formerly distinct products. Finally, reducing the attack surface remains a priority, to the benefit of vulnerability management and Identity and Access Management (IAM).

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WHITE PAPER: CYBERSECURITY: THREAT INTELLIGENCE AND ORCHESTRATION AT THE FOREFRONT OF THE NEW SECURITY REVOLUTION

How communications support an ever more connected world

How communications support an ever more connected world

Thomas Coudry | Managing Director, Telecoms & Media

Telecommunication networks and technologies are at the heart of society’s digitization. In 2020, global capex expenditure in telecom networks amounted to USD 353bn. Computing power and AI is useless without the right networking technologies to deliver information in the most reliable and timely manner. Let’s not forget that 4G has been one of the pillars of the exceptional development of digital ecosystems over the past 10 years. We see 5G, fibre and new IoT technologies as key enablers for the rise of next-generation digital services, alongside edge computing. The bandwidth rush will still be intense, but low latency will be the new gold. While potential on the B2C side is difficult to assess, we see massive opportunities in B2B, fuelling acceleration in the development of smart cities and Industry 4.0.

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EQUITY SECTOR REPORT: FIVE CONVICTIONS ON 5G