Everest Group PEAK Matrix for Enterprise Cloud Application Services

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1 Everest Group PEAK Matrix for Enterprise Cloud Application Services Focus on Accenture November 2014 Copyright 2014 Everest Global, Inc. This document has been licensed for exclusive use and distribution by Accenture

2 Introduction Everest Group released its report titled Enterprise Cloud Application Services PEAK Matrix Assessment and Profiles Compendium. As a part of this report, Everest Group analyzed 19 leading IT service providers on the Everest Group Performance Experience Ability Knowledge (PEAK) Matrix specific for enterprise cloud application services into Leaders, Major Contenders, and Emerging Players. The PEAK Matrix is a composite framework that provides an objective, data-driven, and comparative assessment of independent testing service providers based on their absolute market success and delivery capability. Based on the analysis, Accenture emerged as a Leader and a Star Performer. This document focuses on Accenture s enterprise cloud application services experience and capabilities. It includes: Accenture s position on enterprise cloud application services PEAK Matrix Detailed enterprise cloud application services profile of Accenture Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand the service providers relative strengths and gaps. However, it is also important to note that while the PEAK Matrix is a useful starting point, the results from the assessment may not be directly prescriptive for each buyer. Buyers will have to consider their unique situation and requirements, and match them against service provider capability for an ideal fit. 2

3 Scope of the research (page 1 of 2) IT service providers / system integrators Cloud enablers Public cloud / hosting providers NOT EXHAUSTIVE Focus of the report Cloud market vendor landscape SaaS / platform solutions providers Public cloud / hosting providers Cloud enablers IT service providers / system integrators SaaS / platform solutions providers This report is a compendium of profiles of 19 IT service providers featured on Everest Group s PEAK Matrix for Enterprise cloud application services 3

4 Scope of the research (page 2 of 2) Cloud services NOT EXHAUSTIVE Focus of research Cloud application services Cloud infrastructure services Migration Migration and consolidation of applications to a cloud-based platform Deployment Development and deployment of cloudbased infrastructure Deployment Implementation, customization, and integration of cloud applications with the existing systems Hosting Hosting of cloud on own/partner datacenters Integration Integration and orchestration of cloud applications with enterprise systems Integration Integration and orchestration of cloud infrastructure with enterprise systems Development and management Development and management of cloudbased applications Management Management of cloud-based infrastructure Cloud consulting and advisory services focused on applications (Opportunity and readiness assessment, cloud enterprise architecture, cloud adoption and transition roadmap, etc.) 4

5 Everest Group s cloud services research is based on two key sources of proprietary information 1 Everest Group s annual RFI process with leading cloud IT service providers, followed by briefing sessions with their leadership teams Key elements covered in these interactions include: Focus areas and initiatives for cloud delivery models Scale of cloud operations and delivery locations Areas of investment within the cloud space Service providers assessed 2 Everest Group s proprietary database of operational capabilities of more than 100 cloud service providers (tracked round the year) The database tracks the following capability elements for each service provider: Major cloud clients Recent wins / contracts Cloud delivery locations Cloud service suite Domain capabilities, proprietary solutions, and intellectual property investments Other cloud-related developments Note: We continuously monitor the market developments and track additional service providers beyond those included in the analysis Confidentiality: Everest Group takes its confidentiality pledge very seriously. Any information, that is contract-specific, will be presented back to the industry only in an aggregated fashion 5

6 Background and context Background of the research Cloud adoption has become mainstream with enterprises looking to leverage cloud platforms and principles across the entire applications landscape. Cloud provides enterprises with an opportunity to gain access to, as well as manage applications with high levels of flexibility and scalability at reduced costs. Adoption of SaaS and cloud computing principles are also driving the need for applications consulting and migration services, as enterprises navigate the challenges associated with integrating new solutions with legacy systems and transforming/rationalizing the entire application landscape Service providers continue to ramp up their capabilities, build up scale, and invest in developing and acquiring IP/proprietary solutions in order to tap the cloud market. They have also formed strategic alliances and partnerships to augment their cloud delivery capabilities. Given the wide range of cloud services and engagement models being offered by service providers, it is critical to have a comprehensive, well-rounded, and fact-based assessment of service providers cloud value proposition In this research, we present the assessment and detailed profiles of 19 IT service providers featured on the cloud application services PEAK Matrix. Each profile provides a comprehensive picture of cloud service suite, scale of operations, domain investments, and key partnerships The assessment only covers IT service providers, who are involved in delivering cloud-based application services including development, migration, deployment, management, and advisory services. The assessment is based on Everest Group s annual RFI process and interaction with leading cloud service providers, and year-round tracking of more than 100+ cloud service providers Scope of this report Services: Enterprise cloud application services Geography: Global Service providers: The leading 19 enterprise cloud application service providers This report includes the profiles of the following 19 service providers: Enterprise cloud application services PEAK Matrix Leaders: Accenture and IBM Enterprise cloud application services PEAK Matrix Major Contenders: Atos, Capgemini, CGI, Cognizant, CSC, Fujitsu, HCL Technologies, HPES, IGATE, Infosys, Mindtree, Syntel, Tech Mahindra, Wipro, and Virtusa Enterprise cloud application services PEAK Matrix Emerging Players: EPAM and L&T Infotech 6

7 Accenture is positioned as a Leader and a Star Performer on Everest Group PEAK Matrix for enterprise cloud application services Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for enterprise cloud application services 1 Market success (Revenue and enterprise adoption) High 25 th percentile Low Low Major Contenders Virtusa EPAM Emerging Players Mindtree CGI IGATE L&T Infotech Fujitsu Cognizant Capgemini HPES Atos Wipro HCL CSC Infosys Tech Mahindra Syntel 75 th percentile Leaders 25 th percentile Delivery capability (Scale, scope, domain expertise, and delivery footprint) Leaders Major Contenders Emerging Players Star Performers 1 PEAK Matrix is specific to IT service providers, who are involved in delivering cloud-based services including development, migration, deployment, management and advisory services. Service providers included in the PEAK have been selected on the basis of Everest Group s market understanding and RFI response Note: Assessment for Atos, HCL Technologies, HPES, IBM, and Infosys excludes service providers inputs and is based on Everest Group s proprietary cloud database, service providers public disclosures Source: Everest Group (2014) IBM Accenture 75 th percentile High 7

8 Accenture is identified as a 2014 Star Performer based on its strong forward movement on the PEAK Matrix Methodology Everest Group selects Market Star Performers based on the relative YoY movement of each service provider on the PEAK Matrix Market success Year 1 Service provider Year 0 In order to assess advancements on market success, we evaluate the performance of each of the service providers on the PEAK Matrix across a number of parameters including: Annual revenue from the specific service line Relative adoption across enterprise segments Distinguishing feature of 2013 market success Strong cloud application services revenue growth on a significant base Building a significant revenue stream from the SaaS space, to top up its already prominent presence in the cloud consulting and system integration space Capability In order to assess advancements on capability, we evaluate the performance of each service provider on the PEAK Matrix across a number of parameters including: Annual growth in scale Increase in scope of services Expansion of delivery footprint Technology / domain-specific investments The top quartile performers on each of the identified parameters are identified and the Star Performer rating is awarded to the service providers with: The maximum number of top quartile performances across all of the above / left-listed parameters and At least one area of top quartile performance in both market success and capability advancement Distinguishing feature of 2013 capability advancements Increased SaaS workforce to more than 3,500 employees, a 70% increase YoY Strong partnerships with multiple cloud partners and significant investments in developing assessment tools and accelerators to improve cloud service delivery The Star Performers designation relates to YoY performance for a given service provider and does not reflect the overall market leadership position. Those identified as Star Performers may include Leaders, Major Contenders, or Emerging Players Enhanced its Leader positioning (relative to last year) 8

9 Accenture Cloud application services profile Corporate and cloud application services overview Company description: Accenture is a global management consulting, technology services, and outsourcing organization. As part of its outsourcing segment, the company offers both IT and BPO services. It serves a variety of industries including automotive, communications, BFSI, healthcare, electronics & high-technology, and media & entertainment Headquarters: Dublin, Ireland Website: Overall cloud services-related revenue <US$100 million US$ million >US$500 million Portfolio of cloud application services Cloud application development and management; SaaS implementation; cloud application replatforming services and transformational services; integration and management of hybrid cloud environments; cloud strategy including opportunity assessment, market insight, strategy methodology, and cloud enterprise architecture Relative contribution: Type of cloud application services Share of cloud application services business Relative focus: Overall cloud-based services Applications Strength of focus Infrastructure Consult Build Deploy Manage Overall cloud services by industry Energy and BFSI utilities Healthcare and life sciences Relative adoption Manufacturing Overall cloud services adoption by geography High adoption Moderate adoption Low adoption Public Retail, distribution, and CPG Technology Telecom, media, and entertainment Relative focus: Buyer groups Small (annual revenue < US$1 billion) Medium (annual revenue = US$1-5 billion) Large (annual revenue > US$5 billion) Strength of focus Source: Everest Group (2014) 9

10 Accenture Cloud application services profile Cloud application services capability assessment and market success EVEREST GROUP ESTIMATES Headline assessment Accenture leverages its consulting and system integration capabilities to position itself as a leader in the cloud application services space. Accenture looks to own the complete spectrum of cloud services and act as the single point of contact and orchestrator for cloud solutions from different technology providers. Accenture is one of the leading system integrators for multiple industry-standard cloud platforms and has made significant investments to build its SaaS capabilities. This, along with existing consulting strengths, makes Accenture a strong cloud partner for enterprises Partners Accenture leverages its partnerships with multiple cloud platform providers such as AWS, Microsoft Azure, Google AppEngine, Force.com, and SAP Accenture also provides implementation services for solutions such as SAP Business ByDesign, Oracle on-demand, NetSuite, and Workday For cloud management, Accenture leverages its partnerships with BMC and CA Technologies Accenture and SAP launched the Business Solutions Group in early 2014 for developing industry-specific solutions based on next-generation technologies such as cloud, analytics, and enterprise mobility Talent Accenture has invested significantly in talent for its cloud factories and technology labs across regions Accenture has increased its SaaS workforce to more than 3,500 employees, a 70% increase over FY 2013 Assets (including IP) Accenture s IP primarily revolves around enabling migration to partner cloud platforms. It has invested significantly in developing assessment tools and accelerators to improve its cloud service delivery Accenture s position on Everest Group s PEAK Matrix for cloud application services Market success (Revenue and enterprise adoption) High 75 th percentile Capgemini HPES CGI Wipro Atos HCL CSC IGATE Infosys Tech Mahindra Virtusa Mindtree Syntel EPAM L&T Infotech Low Emerging Players Low 25 th percentile Delivery capability (Scale, scope, domain expertise, and delivery footprint) 25 th percentile Major Contenders Fujitsu Cognizant Leaders Strategic focus areas and market success Accenture s core focus area within the applications space is on implementing SaaS solutions Another important area for Accenture is cloud enabling buyers application landscape, by providing services around platforms (Microsoft Azure and Force.com). It also provides services around business process-based solutions such as Workday Accenture is one of the largest system integrators for Salesforce.com, and has witnessed a significant traction for the implementation of platforms from companies such as SAP, Oracle, and Microsoft Accenture leverages its consulting heritage to have a strong play in the cloud advisory services space (e.g., cloud opportunity assessment) IBM Accenture High 75 th percentile Source: Everest Group (2014) 10

11 Accenture Cloud application services profile Cloud application services offerings and recent developments Cloud application services offerings Cloud application development and management: Accenture leverages its partnerships with multiple providers for platforms such as Microsoft Azure, Google AppEngine, Force.com, and AWS SaaS strategy, implementation, and management: Accenture provides implementation and management services for solutions such as Salesforce.com, Successfactors, SAP ByDesign, Oracle on-demand, NetSuite, and Workday Cloud application migration, replatforming services, and transformational services Integrating and managing hybrid cloud environments across multiple platforms, including data management and app stores Accenture offers consulting and advisory services including opportunity assessment, market insight, strategy methodology, cloud enterprise architecture, and a cloud-enabled IT operating model Cloud application services proprietary solutions (representative list) Solution Accenture Cloud Platform Details A platform for integrating and managing hybrid cloud environments across multiple platforms Accenture has made significant investments in IP creation for vertical-specific SaaS solutions (for instance mortgages and clinical services), business processes (e.g., human capital management), as well as mission critical stacks (e.g., ERP) Overall cloud services recent developments (representative list) Development Accenture and SAP Business Solutions Group (2014) Acquisition of ClientHouse (2014) Global alliance with Apigee (2013) Details Focused on jointly developing and delivering industry-specific solutions based on next-generation technologies (cloud, analytics, and enterprise mobility) Aims to facilitate a simpler purchasing process of SAP and Accenture services for enterprises Move enhances Accenture s Salesforce capabilities in Europe, further strengthening Accenture s leadership position in global Salesforce implementation services Accenture is the preferred systems integrator for Apigee s mobile platform software (including API solutions) Accenture has also invested in Apigee and will join the company s advisory board Source: Everest Group (2014) 11

12 Appendix 12

13 Everest Group Performance Experience Ability Knowledge (PEAK) Matrix is a proprietary framework for assessment of a service provider s capability Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for enterprise cloud application services 75 th percentile High Leaders Market success (Revenue and enterprise adoption) 25 th percentile Major Contenders Emerging Players 4 th quartile performance across market success and capability 2 nd or 3 rd quartile performance across market success and capability Top quartile performance across market success and capability 75 th percentile Low Low 25 th percentile Enterprise cloud application services delivery capability (Scale, scope, domain expertise, and delivery footprint) Everest Group s PEAK Matrix is a composite index of a range of distinct metrics related to a service provider s scale, scope, technology/domain investments, delivery footprint, and resultant market success in the context of a given services function High 13

14 Dimensions of service providers capability and market success underlying the PEAK Matrix Everest Group PEAK Matrix Revenue Leaders Adoption across enterprise segments Market success Major Contenders Emerging Players Delivery capability Scale Scope Domain expertise Delivery footprint Talent Focus across services (consult, build, deploy, and manage) IP/ Proprietary solutions/ Assets Cloud centers of excellence Company scale Coverage across industry verticals Certifications Geographical coverage M&A and alliances Consult 14

15 FAQs (page 1 of 2) Does the PEAK Matrix assessment incorporate any subjective criteria? The Everest Group s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service provider RFIs and the Everest Group s proprietary databases containing providers deals and operational capability information). In addition, these results are validated / fine-tuned based on our market experience, buyer interaction, and provider briefings Is being a Major Contender or Emerging Player on the PEAK Matrix an unfavorable outcome? No. PEAK Matrix highlights and positions only the best-in-class service providers in a particular functional/vertical. There are a number of providers from the broader universe that are assessed and do not make it to the PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is in itself a favorable recognition What other aspects of the PEAK Matrix assessment are relevant to buyers and providers besides the PEAK Matrix position? The PEAK Matrix position is only one aspect of the Everest Group s overall assessment. In addition to assigning a Leader, Major Contender or Emerging Player title, Everest Group highlights the distinctive capabilities and unique attributes of all the PEAK Matrix providers assessed in its report. The detailed metric level assessment and associated commentary is helpful to the buyers in selecting particular providers for their specific requirements. It also helps providers showcase their strengths in specific areas What are the incentives for buyers and providers to participate / provide input to the PEAK Matrix research? Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment Participation incentives for providers include adequate representation and recognition of their capabilities/success in the market place, and a copy of their own profile that is published by Everest Group as part of the compendium of PEAK Matrix providers profiles 15

16 FAQs (page 2 of 2) What is the process for a service provider to leverage their PEAK Matrix positioning status? Providers can use their PEAK Matrix positioning in multiple ways including: Issue a press release declaring their positioning/rating Customized PEAK Matrix profile for circulation (with clients, prospects, etc.) Quotes from the Everest Group s analysts could be disseminated to the media Leverage the PEAK Matrix branding across communications ( signatures, marketing brochures, credential packs, client presentations, etc.) The provider must obtain the requisite licensing and distribution rights for the above activities through an agreement with the designated PoC at Everest Group 16

17 At a glance With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of the next generation of global services Through its practical consulting, original research, and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies, and management approaches Established in 1991, Everest Group serves users of global services, providers of services, country organizations, and private equity firms in six continents across all industry categories Dallas (Headquarters) info@everestgrp.com New York info@everestgrp.com Toronto canada@everestgrp.com London unitedkingdom@everestgrp.com Delhi india@everestgrp.com Stay connected Websites Blog

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