Solution Provider 500: Earnings Are Up; Accenture Studies Cloud Challenges4:15 PM EST Wed. Apr. 25, 2012
This week, earnings news was in the air with Solution Provider 500 companies, as Indian IT firms Tata Consultancy and Wipro reported revenue, as did PGi. Also, Accenture released a study about offering software via the cloud, and CIBER pays an ethics fine.
Moving to providing software via the cloud when you are used to a more traditional method is tough -- probably more difficult than most companies realize. Accenture's new survey, "Where the Cloud Meets Reality: Scaling to Succeed in New Business Models", found that many top execs lack a clear understanding of how the complexity of these new business models impacts operations in nearly every function of their companies. The study includes interviews with more than 40 senior executives from 30 companies that operate, or are building, Software-as-a-Service, Platform-as-a-Service or Infrastructure-as-a-Service cloud-based businesses.
CIBER will pay a $500 penalty after acknowledging it violated Louisiana's ethics code when it paid for a plane ticket for a New Orleans' technology chief during former Mayor Ray Nagin's administration. The Louisiana Board of Ethics determined that CIBER should not have paid for travel expenses for then-city technology director Anthony Jones when the company had a contract with City Hall. CIBER paid for a plane ticket to a conference where it had arranged for Jones to speak. Jones later paid back CIBER.
Jones was involved in a federal investigation of Nagin's administration in which he pleaded guilty to taking payoffs from a different city vendor.
This month, Tata Consultancy Services became the first Indian technology company to cross the $10 billion mark in sales. Annual revenue surged 24 percent to $10.17 billion. TCS' Infrastructure Services, Enterprise Solutions and BPO units each brought in more than $1 billion in revenue. However, for the fourth quarter, growth was much slower: Revenue was up only 2.4 percent to $2.64 billion.
Another Indian IT firm, Wipro, also reported continuing revenue growth this week. Total revenue for 2011 was $7.37 billion, an increase of 21 percent year over year. IT services revenue was $5,921 million, an increase of 13.4 percent. For the fourth quarter, total revenue was $1.94 billion, a year-over-year increase of 19 percent. IT services revenue was $1.54 million, 2.0 percent higher from the previous quarter and a year-over-year hike of 9.7 percent.
Premiere Global Services, a solution provider focused on virtual meeting technologies, saw revenue grow more than 8 percent in the first quarter of 2012. Sales came in at $126.6 million, compared to $116.9 million in the first quarter of 2011. “During the first quarter, we continued to show solid momentum across our global business. At the same time, we are making great progress in transitioning PGi toward a software as a service model," said Boland T. Jones, PGi founder, chairman and CEO, in a statement.