VAR500 Roundup: Capgemini Plans Cloud Services, CDW Predicts Growth, And More

Several VAR 500 companies made moves this week. Capgemini announced efforts to promote cloud computing; Datalink and Descartes Systems reported sales growth; a CDW survey found aerospace companies are rigorously pursuing innovation and CBIZ sold Microsoft Dynamics practice. Check out the action.

Capgemini Group (2009 VAR500 rank: 7), with its subsidiary, Sogeti, plans to launch a new suite of services to help clients realize the business benefits of cloud computing and services. Infostructure Transformation Services aims to help organizations re-engineer their IT infrastructure and deliver immediate, sustainable cost reductions, and enable the shift to creating what Capgemini calls an "Infostructure." Four distinct offerings within Infostructure Transformation Services will help companies on their trip to the cloud: data center optimization and consolidation, virtualization, unified communications and cloud-based solutions.





"CIOs are under pressure to deliver sustainable cost-reduction whilst providing value-for-money opportunities for growth and differentiation," said David Boulter, vice president, Global Infostructure Transformation Services, in a statement. "New business models are disrupting the manner in which computing capability is deployed and procured, perhaps more importantly the explosion of new cloud services creates the notion of the 'Enterprise Apps Store,' which we believe will fundamentally change the means by which companies assemble solutions."

CDW's latest IT marketplace survey reports that increased optimism about business growth among federal government and large corporate IT decision makers is balanced against a less confident outlook among those in local government, state government and small businesses.

More than 62 percent of IT decision-makers at large businesses expect IT budgets to increase in the next six months, 14 percentage points higher than at the beginning of the fourth quarter of 2009. In addition, 44 percent of large businesses expect to replace/install new hardware "significantly" in the next six months, up 11 percentage points since Q4 2009.



However, only 27 percent of IT decision makers at small businesses expect budget increases in the next six months. That number is up four percentage points since October 2009.



"The relative confidence we see from large businesses, which have more resources to leverage infrastructure and efficiency, has not yet spread to small businesses, which are still exercising caution as they begin 2010," said Thomas E. Richards (left), president and chief operating officer, CDW (2009 VAR500 rank: 17).



In the public sector, 49 percent of federal IT decision makers expect increased budgets in the next six months, up six percentage points since December 2009. Only 27 percent of state and 16 percent of local government IT decision makers predict budget increases during the same time period.

A 2010 aerospace and defense (A&D) market survey released by CSC (2009 VAR500 rank: 6) found that substantive changes in U.S. defense policies, system priorities and budgets, and the effects of the global recession on commercial aerospace are driving new growth strategies within the A&D industrial base.

The survey contacted 2,200 senior and mid-level executives. The results showed that in order to pursue growth, both in their core defense and aerospace sectors and in new markets (such as cybersecurity, renewable energy, and physical and information infrastructures), the executives are focusing on several steps.

They are planning innovation in products and services; preservation of core product and manufacturing capabilities; expansion of foreign military sales; acceleration into adjacent commercial markets; retention of institutional knowledge; and creation of new value chain networks to deliver continuous performance improvement

"We are entering a new era in the aerospace and defense industry given the change in U.S. government policy as well as the continued effects of the recession," said Eileen Sweeney, president, Global Manufacturing Industry Sector, CSC. "Future growth for the industry is contingent upon developing new business strategies and models to pursue new markets and using technology to enable this shift."

InterDyn Socius has acquired the Microsoft Dynamics practice of CBIZ Technologies.

The deal expands Socius' team of consultants and extends the company's physical presence by adding locations in Tennessee, Kansas City and Northern California that will serve the newly acquired customer base in those areas.

"This is a tremendous milestone in our continued growth," said Jeffrey R. Geisler (left), CPA, InterDyn Socius' CEO. "We are very excited to work with the CBIZ Technologies (2009 VAR500 rank: 108) staff in each of these locations as they continue to serve their clients. We are confident that these additions to the Socius team will deliver great benefits for all of our clients."



The deal will enable CBIZ to focus on their core accounting, tax, and business advisory services, while IT solution provider Socius will be able to provide technology consulting services for the firm's Microsoft Dynamics clients. By working closely with the teams at Microsoft, CBIZ Technologies maintained a comprehensive understanding of the Microsoft Dynamics platform to provide leading-edge solutions, services, and value to Microsoft Dynamics customers.

Datalink (VAR 500 2009 VAR500 rank: 213) reported that fourth quarter revenue was up -- $51.8 million compared to $48.2 million for the prior-year period. However, revenue for the full year was $178.1 million compared with $195.6 million for the prior year. Datalink's results for the 2009 fourth quarter and full year include $4.4 million of revenue from the value added reseller business of Incentra, which the company acquired on Dec. 17, 2009.

"We will complete the organization and back office integration of Incentra within the next couple of weeks and will continue to work to extract the synergies of our combined business," said Paul Lidsky, (left), Datalink's president and CEO.

Descartes Systems (2009 VAR500 rank: 379) reported overall revenue of $18.9 million for its fourth quarter of fiscal year 2010, a 20 percent gain from same-quarter revenue in 2009. Revenue from the third quarter of the 2010 fiscal year was also $18.9 million.

The 2010 fourth quarter figures comprise $17.7 million (or 94 percent) in services revenue and $1.2 million (6 percent) in license revenues. For the 2010 fourth fiscal quarter, services revenues were up 23 percent from $14.4 million in the fourth quarter of '09, and were slightly down compared with $18.0 million in the third quarter of 2010.



"There is a new immediacy for our customers; the world has changed and our customers need to change with it. We have, and will, continue to work with our customers to provide solutions that allow them to save money now and help them comply with regulatory requirements for shipments through our federated Global Logistics Network and value-added services," said Art Mesher, (left), Descartes' CEO. "Our customer-focused strategy and proactive approach to solving logistics problems has put time on our customers' side and our side as we collectively advance to making the world a better place through logistics."

Stanley (2009 VAR500 rank: 118) has been selected as one of two prime contractors to provide business process support services for visa-related operations at U.S. embassies and consulates abroad. The contract has a $2.8 billion contract ceiling. Under the contract, Stanley will provide oversight and management of support services for worldwide U.S. visa operations in up to 149 GSS countries.

"Stanley has a long-standing, 17-year partnership supporting DoS CA in a wide range of passport and visa services, including modernization of consular systems, visa systems training at 250 overseas embassies and consulates, and implementation of the first-ever passport book print facilities," said Phil Nolan, (left), Stanley chairman, president and CEO. "We greatly value our service to DoS CA and fully appreciate the importance of this GSS initiative."



Also of interest:

Last week's VAR500 slideshow



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