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Ovum Applauds Capgemini’s for Delivering Cloud Services through SkySight

Ovum reported on the Group’s Analyst Day, highlighting what the analysts viewed as over-arching themes of the keynotes: innovation and industrialization

July 02 2013 - Capgemini Analyst Alert

REPORT: Ovum, “Capgemini turns to the West for cloud and the East for industrialization” Ian Brown, 1 July 2013

Ovum reported on the Group’s Analyst Day, highlighting what the analysts viewed as over-arching themes of the keynotes: innovation and industrialization. The report focused heavily on the SkySight announcement, saying that “the event provided a platform to announce a new cloud initiative – SkySight” and that they “applaud Capgemini’s pragmatic partnering solution for delivering cloud services, even though its cloud strategy has been hitherto rather fragmented.”

The following are excerpts regarding SkySight from the report:

Prior to SkySight, Capgemini’s cloud strategy was fragmented. It has a number of initiatives with different cloud providers, including Amazon Web Services (AWS), Google, and Salesforce.com. Although it has a strong Salesforce.com SI practice, other relationships seem to have been entered into on an almost ad hoc basis. SkySight does not change those relationships (Capgemini will continue to use AWS to support its mobility services and testing, for example), but it nails Capgemini’s cloud strategy firmly to the mast of partnering with the leading cloud platform players rather than attempting to build its own cloud infrastructure. It will not be an IaaS platform provider.

As well as benefitting from Microsoft’s investment in its platform, Capgemini should also benefit from sales referrals and Microsoft’s marketing machine...

SkySight is a positive move for Capgemini. It avoids the money pit of developing its own cloud platform, while aligning Capgemini with one of the “big three” cloud platform providers. It is a non-exclusive partnership, which means that Capgemini could take its Cloud Orchestration Services and skills and apply them to any of the other leading IaaS platforms, including forthcoming VMware and OpenStack clouds.

However, we need to keep this development in proportion. Capgemini is only one of Microsoft’s outsourcing partners and it is by no means the biggest. In addition, according to the outsourcer, approximately 5% of its contracts are delivered as pure “as-a-service”, while 25–30% involve a “XaaS” discussion or component. That’s a lower percentage than some of Capgemini’s more infrastructure-focused competitors, but not so surprising given its predominantly applications focus. And while cloud has to be a sourcing option available from all outsourcers, it is still far away from being the dominant sourcing option in multi-tower outsourcing deals.

...as an indication of how important SkySight is to Capgemini, it has been elevated internally to the priority status of Top Line Initiative (TLI), alongside business intelligence management (BIM), testing, and mobility.

Ovum also commented that, “Capgemini has become the most Indian of European IT outsourcers,” while describing the industrialization of our IP in mobility, analytics (BIM), SAP HANA, and orchestration -- with Capgemini’s Indian operations leading the standardization efforts. Ovum notes that “if customers’ expectations are for IT operational cost reductions of 30% or more through outsourcing, the only way vendors like Capgemini are going to hit that and achieve respectable margins is through standardized and repeatable services. Reusable IP has become all important to IT outsourcers, not because they want to produce software products, but because they want to reduce manpower requirements, speed up delivery, and improve service quality.”

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About Capgemini

With more than 125,000 people in 44 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at www.capgemini.com

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