Archive for May, 2013

UK outsourcing plunges in first quarter of 2013

May 28th, 2013

2013 got off to a slow start for the UK IT and business process outsourcing sector, with a 30% drop in total contract value in the first three months of 2013 as the number of new contracts fell and renegotiations dominated activity.

The total value of contracts worth over $5.2m signed in the UK during the quarter was $762m. The EMEA region as a whole recorded a total contract value of $1.9bn, 20% less than the same period last year. This compared with $3bn in the first quarter of 2010, $2.7bn in 2011 and $2.4bn last year. IT outsourcing accounted for $1.4bn of the total and business process outsourcing (BPO) $500m. There were 105 contracts awarded in EMEA, 15% less than the same period in 2012 and 17% lower than the previous quarter. One of the reasons for the disappointing sales was the fact that the proportion of contracts that were renegotiations rose to about 50%, with new contracts down significantly.

Globally the total value of contracts was $3.9bn in the first quarter of 2013, compared to $5.4bn 12 months earlier.

SAP Q1 results: UK and northern Europe show growth

May 18th, 2013

SAP’s priority areas of in-memory database technology, mobile and cloud are showing significant growth in the UK. Russia and Switzerland also contributed relatively strongly to 13% growth in software and cloud subscription revenue in EMEA, confirmed a company statement.

One UK SAP customer that has decided to adopt the supplier’s Business Suite on HANA, rather than just do analytics on the in-memory database is Kingfisher, the home improvement retailer. Smyths Toys has also decided to run Business Suite on HANA.

SAP confirmed that they had signed up 800 new customers in the first quarter in the EMEA region.

Microsoft reports strong quarterly results for all divisions

May 8th, 2013

Despite a mixed response to Windows 8 and a global decline in PC sales, Microsoft reported net income of $6bn for the quarter ended 31 March 2013, up 17% from the same period a year ago. The software maker also reported revenues of $20.5bn, up 1% on the same period in 2012; and operating income of $7.61bn, an increase of 19% compared with the same period in 2012.

Analysts said Microsoft’s profits were boosted in part by changing the way it sells software licenses to businesses and cost-cutting measures. “The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE, and Skype,” said Microsoft CEO Steve Ballmer.

The Microsoft Business Division posted revenue of $6.32bn, an 8% increase from the prior year period. During the quarter, Microsoft launched a new version of Office with new mobility, social and cloud features. The Server and Tools business reported revenue of $5.04bn, up 11% on the same period a year ago. Microsoft said the increase was driven by double-digit percentage revenue growth in SQL Server and System Center.

The Windows division posted revenues of $5.7bn, a 23% increase from the same period in 2012. During the quarter, Microsoft added to the Surface family of devices with Surface Pro.

The Online Services division reported revenue of $832m, up 18% on the previous year. Online advertising revenue grew 22%, driven by an increase in revenue per search.

The Entertainment and Devices division posted revenue of $2.53bn, an increase of 56% from the first three months of 2012. Microsoft said Xbox LIVE now has over 46 million members worldwide, an 18% increase from the prior year period.

Despite the better-than-expected numbers, Microsoft announced that chief financial officer Peter Klein is to leave the firm at the end of June. The departures of senior figures come amid questions over the leadership of chief executive Steve Ballmer, with concerns about slowing growth and Microsoft’s failure to make a significant impact in the smartphone and tablet PC markets.