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Posted by: HotViews Editor at 15:00
HPE reported its first quarter results overnight with shares taking a subsequent dive.
Although the performance for the three months to the end of January met revenue guidance at +17% (constant currency) to $7.9bn, President and CEO, Antonio Neri, said “we could have executed better in some areas”. The firm surpassed its growth target in FY24.
The company said it had a “higher than normal” inventory for AI servers because of a shift to next-gen Blackwell GPUs from NVIDIA. HPE also had to deal with extensive discounting in the market during the three months with CFO, Marie Myers, saying “pricing adjustments may negatively impact top-line growth in the near term”.
Gross margin (non-GAAP) was down 6.8 basis points year-on-year to 29.4%. Myers explained that actions had been taken in the quarter to “streamline costs”. However, there was bad news for staff with the announcement of a cost-cutting programme that would see c.2,500 jobs cut over the next 18 months.
For Q2, HPE is outlooking revenue of $7.2-$7.9bn. For the full year (FY25), top line growth is expected to be in the 7-11% range. Overall, the markets were not impressed with what they heard, and the share price tumbled around 19%.
Posted by: Kate Hanaghan at 14:39
Tags: results infrastructure
Indian IT services provider, Hexaware, has released its latest full year results highlighting double-digit revenue growth and a healthy profit. The results for the twelve months ended 31 December 2024 were fuelled by an excellent performance in the US. Total global revenue was up 13.7% at $1.43bn with the company achieving EBITDA of $227m and profit after tax of $140m (+16.2%).
On a segmented basis, the Mumbai-headquartered vendor enjoyed 22.5% revenue growth within Healthcare and Insurance, 19% in Financial Services, 13.3% in Travel and Transportation, 7.6% in Banking and 4.5% in Manufacturing and Consumer. The majority of Hexaware’s FY24 growth came from the US, where the firm grew by 17.7%. Elsewhere revenue increases where more modest, with APAC up 13.7% and Europe (including the UK) up 3%.
Within its earnings announcement, Hexaware highlighted a number of recent client successes including: replacing Appian with AWS cloud-native solutions and ServiceNow for a large US mortgage provider; a GenAI-based application modernisation project for a major US airline; a digital banking implementation for a large South-East Asian bank, and delivering cybersecurity services for a global provider of financial markets data and infrastructure (headquartered in the UK).
Commenting on the company’s first set of results following its recent $1bn IPO, Hexaware’s CEO, R Srikrishna said “We are delighted to be public again. Materially outperforming industry growth… reflects the strength of Hexaware’s foundations: putting clients first, creating a home for great talent, and using platforms for real impact. We look forward to building on this momentum for a great 2025.”
In addition to its strong FY24, Hexaware also closed out the year strongly with an excellent Q4 that saw the company achieve revenue growth of 18.5%. Although the vendor’s recent success (and market focus) has largely been centred upon the US, Hexaware is also an increasing presence on this side of the pond. It will be interesting to track the company’s fortunes over the coming months as it looks to grow its UK footprint.
Posted by: Jon C Davies at 13:45
In a slew of press releases, timed to coincide with the CERAWeek global energy conference next week, Google Cloud has announced a number of collaborations with energy companies and solution providers, showcasing where its AI capabilities are being deployed in energy and climate-related use cases.
AI weather forecasting models developed by Google DeepMind, Google Research, and WeatherNext have been made available to Google Cloud enterprise customers via experimental datasets in Google BigQuery and EarthEngine (WeatherNext provides 10-15 day ahead weather predictions designed to help companies better prepare for extreme weather events).
Applying this data, Google Cloud Consulting is working with intelligent climate and energy solutions provider Carrier to develop and deploy its Home Energy Management System (combining dedicated battery storage with advanced heating, ventilation and air conditioning (HVAC) systems) to serve as an “intelligent energy optimiser” in people’s homes. By leveraging WeatherNext’s AI-driven insights, Carrier’s solution will dynamically adjust HVAC energy consumption based on real-time weather forecasts and energy grid conditions.
Google Cloud also announced a collaboration with SLB and non-profit Project Innerspace to combine the former’s GeothermEx consulting services with the latter’s GeoMap geothermal dataset (hosted on Google Earth Engine and leveraging BigQuery and Vertex AI) to help drive the adoption of geothermal energy globally. A recent report by the intergovernmental International Energy Agency (IEA) indicated that geothermal has the potential to meet global electricity demands 140 times over (second only to photovoltaic amongst clean energy tech) – making it a key potential contributor to countries’ renewables portfolios.
COP28’s call to triple renewables capacity by 2030 (see COP28’s Call to Arms for the Tech Industry highlighted how important renewable energy projects are to meeting net zero pledges, and data from the Sustainability Technology Activity Index shows that Energy supply was the joint-third most common use case area worldwide in Q1 2024, accounting for 13.7% of all activities logged by the Index.
However, there was much less activity in the UK during the period, with only 7.1% of use cases attributable to that area of work – third from last place – indicating that there’s more the UK could be doing. We’ll be publishing a new set of Index reports, looking at the whole of 2024’s sustainability activity data, in a few weeks – when we should see how much the UK government’s net zero and energy security announcements in the latter half of 2024 have affected interest and investment in the area for software and IT services suppliers.
Posted by: Craig Wentworth at 11:45
Tags: energy predictions climate sustainability weather HVAC
Posted by: HotViews Editor at 07:00
Today’s UK-Ireland Summit will see Prime Minister Keir Starmer and Taoiseach Micheál Martin announce commitments to enhance partnership, growth and investment between the two countries, focusing on opportunities in technology, AI, renewable energy, security, and innovation. In advance of the Summit, Starmer and Martin will host a roundtable with business leaders that will detail new investments worth £185.5m from Irish businesses, creating 2,540 jobs across the UK.
Taking place in Liverpool, this is the first in a series of annual summits that are intended to drive a new programme of strategic cooperation between the UK and Ireland. Ireland is the UK’s 6th largest trading partner, and the UK is Ireland’s second largest trading partner, but given the rapidly changing geopolitical landscape it is important to strengthen this relationship. As such, a new framework for cooperation will be agreed to support infrastructure delivery across areas such as housing, transport and energy infrastructure through to 2030.
Much of the focus will be on new data sharing arrangements between the UK and Irish governments, intended to increase interoperability and speed up investments in offshore energy; however, the Summit will also strengthen cooperation across the tech sector. The £185.5m of new investment includes commitments from technology companies Version 1 and Galvia, as well as from Applegreen, Omniplex, Buymedia, Uniquely, Walsh Mushrooms, and PM Group.
The investment from Version 1 includes £40m and the addition of approximately 1,000 roles over the next few years. Most of these new roles will be AI-related and located across its London, Birmingham, Newcastle, Manchester, Edinburgh and Belfast locations. As TechMarketView discussed last year (see Version 1: Responsible AI and societal impact driving AI strategy), the company has been rapidly developing AI solutions for customers, embedding AI across its existing business and driving internal transformation. The company has been performing well in the UK, led by a strong footprint across the public sector, and its presence at today’s Summit will help to enhance its growing presence in the country.
Posted by: Dale Peters at 09:53
Tags: investment government ireland AI
Volaris Group continues to expand its maritime software portfolio with its latest acquisition of Oceans HQ, which is set to operate as part of PDMS. This move brings together two established players in the ship registry solutions space, creating a more comprehensive combined offering.
PDMS, which was acquired by Canadian-headquartered Volaris just over a year ago in February 2024, has been active in the maritime sector for more than 20 years with its MARIS solution. It is just one of the many sectors where the company seeks to combine strong business and domain understanding with software engineering excellence. The company’s impressive client list includes the Bahamas Maritime Authority, Bermuda Shipping and Maritime Authority, and Isle of Man Ship Registry.
Oceans HQ isn’t a newcomer either – it’s spent the past decade building solid relationships with maritime administrations, including Gibraltar Maritime Administration, San Marino Ship Register, and the Swiss Maritime Navigation Office. Their OHQ Cloud suite covers everything from vessel registration to seafarer certification – a well-matched addition to PDMS’ existing capabilities.
For PDMS CEO Catriona Watt, who took the helm in April 2024, this acquisition strengthens the company’s capabilities in the maritime software sector. Meanwhile, Oceans HQ gains the backing of a larger organisation and access to Volaris’ extensive support network.
This latest development follows Volaris’ acquisition of PDMS last year, when they made it clear they were in it for the long haul with their “buy and hold forever” approach. PDMS founder Chris Gledhill had highlighted Volaris’ knack for nurturing software businesses as a key factor in that deal.
With MARIS and OHQ Cloud now under one roof, alongside PDMS’ broader digital services, the company combines complementary solutions for ship registries of all sizes. This expanded toolkit should help PDMS chart a successful course in the competitive maritime software market while serving the diverse needs of the shipping industry worldwide.
Posted by: Georgina O’Toole at 09:41
Tags: acquisition M&A maritime software engineering
Cardiff-based Nisien.AI has secured funding from the British Business Bank’s £130m Investment Fund for Wales in a deal facilitated by Foresight Group and the Development Bank of Wales. The investment should help position the company for faster growth in the increasingly competitive AI cybersecurity landscape.
Founded in 2023 by Cardiff University professors Matt Williams and Pete Burnap, Nisien.AI is developing AI solutions to detect and mitigate online harm without resorting to overly excessive censorship. Their flagship product, HERO Detect, employs AI algorithms to classify harmful content across digital platforms in real-time.
The investment looks particularly timely with the upcoming implementation of the UK’s Online Safety Act, which should create substantial market opportunities for companies offering compliant content moderation. Nisien.AI already counts major social media platforms and global brands among its key customers with the likes of TikTok, Honda, Saatchi & Saatchi and BT all listed as clients on their website. Indeed, you can read our take on the impact of both the Online Safety Act 2023 and the upcoming Digital Information and Smart Data Bill (DISD) on the market for digital identity services in a short TMV report here .
The company currently employs 14 people and will look to use the funding to accelerate R&D and hire-in experience. As part of the deal, Tony Stockham, an experienced entrepreneur in the AI field, has been appointed Chairman to help guide the company’s scaling efforts. The executive team already features industry veterans including CEO Lee Gainer (former Wealthify CFO), positioning Nisien.AI as an emerging player in the digital safety space. With a dual focus on both harm detection and community preservation, Nisien.AI is part of an evolving content moderation landscape —attempting to balance safety requirements with the preservation of open dialogue in digital spaces.
Posted by: Marc Hardwick at 09:11
Tags: funding cybersecurity AI_ethics
UK-based Quantexa has secured new investment worth $175M for its AI-derived decision intelligence proposition (DI). The technology unicorn founded in 2016 by CEO, Vishal Marria, is now valued in excess of $2.5bn, having successfully closed its Series F. The funding round was secured thanks to a major contribution from Teachers’ Venture Growth (TVG) along with participation from existing investors, such as British Patient Capital.
In conjunction with the new cash injection, Ara Yeromian, Managing Director at TVG will join the board of Quantexa, alongside representatives from Warburg Pincus, Dawn Capital, Evolution Equity Partners, AlbionVC, and HSBC. Quantexa’s latest funding round follows its $129m Series E in April 2023, which saw the company achieve a valuation of $1.8 bn.
Quantexa enjoyed licence revenue growth close to 40% in 2024, thanks to uptake within financial services, telecoms, media, technology, and the public sector. The company’s employee roster has now swelled to 800 with the company operating out of 16 global locations. Quantexa plans to use the new investment to help accelerate innovation, expand its footprint in the US, and support inorganic growth. The company hopes that with a number of influential new investors on its board will help to fuel its international expansion.
Posted by: Jon C Davies at 08:48
Tags: funding
The latest episode in TechMarketView’s series of Totally Sust podcasts sees SustainabilityViews’ lead analyst, Craig Wentworth, interview Davide Ceper (former CEO of Varda, which has now transitioned into the Varda Foundation) and Alexander Watson (Founder and CEO at OpenForests) about how the two organisations are working together to build trust and transparency in the food supply chain.
Tune in to hear how the Varda Foundation’s Global FieldID system creates a unique global identifier for every agricultural plot of land, while OpenForests provides the mapping and storytelling tools that help prove sustainability credentials. Together, they’re tackling fraud in carbon offset projects, supporting smallholder farmers to meet regulatory requirements, and creating the transparency needed to unlock vital climate finance for sustainable agriculture around the world.
A 4-minute snippet of the podcast is available to stream for free now on SoundCloud and Spotify (or you can play it using the widget below).
Subscribers to our SustainabilityViews research stream, however, can stream or download the full 34-minute version of the episode. If you are not yet a subscriber, or are unsure if your company has a subscription, please contact Belinda Tewson to find out how you can access the research.
Posted by: Craig Wentworth at 07:00
Tags: agriculture climate finance food supply chain
Telefónica has announced the creation of a Centre of Excellence dedicated to quantum technologies, around which the company’s internal governance model within this field of knowledge will revolve. The announcement was made during the Mobile World Congress (MWC) event yesterday.
The Centre of Excellence is set to coordinate all innovation lines from the different areas of the company, to promote new solutions, to activate technological agreements with third parties and to participate in forums to share the group’s quantum proposal with the industry. To this end, the Centre will leverage the three fundamental axes of quantum technologies: communications and cybersecurity; computing and simulation; and sensors and metrology.
Telefónica is aiming to take advantage of the opportunities arising from quantum computing, to strengthen the protection of the company’s networks and systems, as well as those of its customers, identifying the most appropriate tools and processes to reinforce security and neutralise risks through its services. To this end, the company has begun to adopt a cryptographic agility approach in its strategy, or crypto-agility, based on enabling its systems with the necessary mechanisms to react quickly to cryptographic threats, protect keys, certificates and data. Telefónica is also opening up this approach of cryptographic agility for its customers to benefit from.
Telefonica has already been investing significantly in upgrading its networks, including making progress toward leveraging hyper-automation, and using AI analytics to optimise performance in real time. Adding quantum cryptographic encryption is an area many CSP’s, as well as organisations in regulated industries, are already exploring as they seek to stay ahead of the rapid innovations in quantum technologies to break RSA encryption and protect valuable data.
One of the strengths of Telefónica Tech, its technology solutions division, is the ability to draw upon the broader connectivity and network expertise of the wider Telefónica group. In the UK&I there is a great opportunity for the Telefonica Tech business to leverage the capabilities being developed across the international business group. Quantum technologies, both to improve data security and to solve complex optimisation problems are set to be an important growth trend in the years ahead, and one many system integrators are actively exploring.
Posted by: Simon Baxter at 10:09
Tags: quantumcomputing networks
Comptroller and Auditor General (C&AG), Gareth Davies, has called on the government to harness the potential of new technology to unlock gains in productivity and resilience. In his annual keynote speech to Parliament, the head of the National Audit Office (NAO) said amid rising demands and increasing financial constraints it will be impossible to deliver the requisite improvements without effective innovation in how society’s problems are being solved and how services are delivered.
Davies said that applying new technology, including artificial intelligence (AI), was rightly at the top of the political agenda. He highlighted the clear potential AI has for reducing the time taken for routine tasks, augmenting the work of skilled experts and making public services easier to use. He said the NAO has started seeing examples of relatively straightforward applications of AI in government, but that we are still in the “foothills” of a huge change in the design of public services and administration.
The C&AG said realising the benefits of new technology will require a focus on improving training, procurement, data quality, and business processes. He also highlighted the importance of resilience in achieving value for money. This is a topic the NAO recently addressed in its report on government cyber resilience (see NAO: Government must act now to build cyber resilience). This report highlighted a lack of understanding regarding the vulnerability of legacy IT systems and significant gaps in departments’ cyber resilience, and urged the government to act now to build its capabilities and defences against a rapidly increasing and evolving cyber threat.
Davies said that innovation was key to unlocking improvements to productivity and resilience. He highlighted the need for a clearly articulated risk appetite, harnessing new technology, a culture of fast learning, and an accountability and scrutiny framework that encourages well-managed risk taking. This includes improving how the government manages its technology suppliers, something the NAO recently said had resulted in wasted taxpayers’ money and contributed to poor outcomes in its attempts to modernise (see NAO calls for improvements in government’s approach to tech suppliers).
It is positive to see the NAO emphasise the importance of technology in driving productivity improvements and take a more overtly pro-innovation approach in its work. Talking about the benefits of AI is not enough to deliver the scale of change required to improve public services, the government must get better at failing fast and rapidly scaling up investments in technologies that are demonstrably effective. This will require an accountability framework that encourages appropriate risk taking.
Posted by: Dale Peters at 10:03
Tags: government NAO productivity resilience value+for+money
Over the past two days we saw both identify security supplier Okta, and security platform supplier CrowdStrike, report Q4 and FY25 results. Despite CrowdStrike reporting growth of almost double that of Okta, its shares fell -9% in pre-trading with a weaker outlook for FY26. Okta’s share price jumped 24% yesterday as the firm made a net profit for the first time.
Okta saw revenues increase 13% yoy to $682m in Q425. RPO, or subscription backlog, was $4.2bn, an increase of 25% yoy. For the full FY25, total revenue was $2.6bn, an increase of 15% yoy. Net income was $28m, compared to a net loss of $355m for FY24, swinging the company to a profit for the first time. Okta said growth is expected to be 10% yoy in Q1 FY26, with a projected growth rate of 9% to 10% yoy for FY26.
Demand for both workforce and customer identity products was strong Okta said, with its focus on product innovation resonating with customers. Over 20% of Q4 bookings were from new products, such as Okta Identity Governance, Privileged Access, Device Access, Fine Grained Authorisation, Identity Security Posture Management, and Identity Threat Protection with Okta AI.
Meanwhile, CrowdStrike reported Q4 revenues were up 25% yoy to $1bn, with full year FY25 revenue of $3.95bn, a 29% increase. The business exceeded $1bn in annual free cash flow for the first time and was the first cybersecurity ISV to cross $1bn in deal value on AWS Marketplace in a single calendar year. FY25 ending ARR for cloud security, identity protection, and SIEM was over $1.3bn, growing nearly 50% yoy.
One of the announcements in Q4 was the general availability of Charlotte AI Detection Triage, an agentic AI-driven security operations tool. Operating with customer-defined bounded autonomy, Charlotte AI triages security detections with over 98% accuracy, eliminating more than 40 hours of manual work per week on average according to CrowdStrike. The business also launched CrowdStrike Insider Risk Services, a set of offerings designed to help organisations detect and prevent insider threats.
Partners are playing a growing role for CrowdStrike with SI’s like Accenture, Deloitte, EY, HCL, Wipro, NTT, TCS, Infosys, and Cognizant all investing in their Falcon services practice, with continued growth from such partners expected in the next fiscal. For FY26 total revenue is expected to be in the range of $4.7bn to $4.8bn, reflecting a growth rate of 20% to 22%.
Posted by: Simon Baxter at 09:58
There are encouraging signs of a rebound following Atos’ financial restructuring. A green shoot has appeared in the form of the Group-wide book-to-bill ratio, which stood at 117% (up 9 points compared to Q423) in the final quarter of FY24 (to 31 December 2024). The full year’s book-to-bill stood at 82% (vs. 94% in FY23), indicating that things were improving toward year-end. The final steps of the restructuring plan were completed on 19th December, ushering in a new chapter for the company (see Atos Group: A new chapter | TechMarketView). Atos’ new CEO, Philippe Salle (see New Atos CEO from Feb 2025: Philippe Salle | TechMarketView), will present his vision for Atos and a mid-term strategy during a Capital Markets Day on 14th May.
However, there is no escaping that the Group suffered a very challenging time during the 12 months, with the uncertainty that defined much of the year weighing in on performance. Group revenues declined organically by 5.4% to €9,577m due to contract terminations, scope reductions, and “market softness in key geographies”. Eviden’s revenues declined 6.7% organically, and Tech Foundation’s revenues were down 4.1%. Meanwhile, the operating margin stood at 2.1% (2.0% for Eviden and 2.2% for Tech Foundations) vs. 4.4% the previous year.
The UK&I business has been under new leadership since the end of January (New Atos UK&I Lead: Michael Herron | TechMarketView). With notable revenue declines in the geography last year (UK&I declined by 14.9% to €1,500m, with the operating margin at 4.8%), Michael Herron has a big task ahead. The good news is that there has already been some positive momentum with recent major contract signings (such as that with Utmost Life and Pensions announced last month), and more large wins are expected imminently.
During Herron’s first four weeks in the role, he has reunited the Eviden and Tech Foundations businesses, allowing for greater clarity in developing Atos’ Value proposition and Go-To-Market strategy for the geography. He has also appointed a new leadership team, and we expect some new external senior talent appointments to be announced this quarter. Now, Herron’s focus is firmly on fixing the business foundations. With a revenue hole to fill following the end of Atos’ large DWP BPO contracts last year (Capita to deliver new £565m Functional Assessment Service | TechMarketView), there is a high likelihood of a further revenue decline this year; FY25 will be all about right-sizing the business, shifting the revenue profile, and improving margins, with an eye on a return to profitable growth in FY26. As Atos enters a new chapter, Herron has an opportunity to reposition Atos in the UK market; he is certainly on the case.
Posted by: Georgina O’Toole at 09:45
Tags: results itservices corporateactivity
Netcall has announced its results for H1 FY25 (ended 31st December 2024), with revenue up 22% year-over-year to £23.0m (as we trailed in our coverage of the company’s H1 trading update at the start of the year), comprising 12% organic growth plus contributions from recent acquisitions (Skore, Govtech, and Parble).
Cloud services revenue surged 44% to £13.4m, with cloud annual contract value (ACV) jumping 47% to £29.9m—now representing 76% of total ACV (£39.4m, up 31%). The shift towards predictable, recurring revenues continues, now accounting for 79% of total revenue (H1 FY24: 75%).
Adjusted EBITDA increased by 18% to £5.7m, maintaining a healthy margin of 25% (H1 2024: 26%), though group operating profit remained level at £3.4m due to acquisition-related costs.
The Govtech (August 2024) and Parble (September 2024) acquisitions during H1 have enhanced Netcall’s digital process automation capabilities and helped the company to expand into intelligent document processing – with early cross-selling successes already bringing the first sales of Parble’s IDP solution into existing Netcall clients and Liberty platform sales to Govtech customers.
Netcall’s board reports continued positive momentum into H2, with cloud and AI adoption providing strong market tailwinds. The growing base of recurring revenues and robust pipeline underpins its confidence in meeting full-year expectations.
Posted by: Craig Wentworth at 09:28
Tags: results acquisitions
DXC Technology has launched a major new proposition targeted at the insurance industry in collaboration with its strategic partner ServiceNow. DXC has combined its comprehensive suite of existing insurance solutions with ServiceNow’s workflow and AI capabilities under the banner of DXC Assure BPM (Business Process Management) powered by ServiceNow.
Assure BPM powered by ServiceNow has been conceived to provide an end-to-end solution to support the full insurance lifecycle. The collaborative proposition incoporates specific components focused on key process elements including: new business and underwriting; policy administration; billing and payment; and claims management.
The combined offering includes purpose-built, preconfigured workflows, advanced security and data capabilities, an AI-driven, self-service portal and automated back-office policy administration powered by AI. DXC claim that its new insurance solution will help reduce up to 40% of the operational costs typically spent by an insurer on manual processing, whilst reducing enhancing efficiency and improving customer satisfaction.
DXC’s Insurance business, revitalised under the leadership of returning President, Ray August, has been something of a shining light for the vendor over the last 24 months (see: DXC goes “back to the future” for insurance success). Despite the challenges faced by the wider organisation, Insurance Software and BPS has been growing, with the unit delivering a 3.3% revenue increase in DXC’s most recent fiscal (FY24) to reach $1.54bn. Commenting on his team’s collaborative initiative with ServiceNow, Ray said “Together, we are shaping the future of the insurance industry”.
Posted by: Jon C Davies at 09:21
TechMarketView wants to hear again from UKHotViews readers about how you view the current state of the UK tech scene.
Last September, TechMarketView launched the results of its inaugural Tech Confidence Index (TCI) (Autumn 2024 edition), a six-monthly survey acting as a bellwether for the state and prospects of the UK tech sector. This first edition of TCI included the results from more than 250 business leaders serving all major Software & IT Services (SITS) sectors and end user industries.
This week, we commence the second edition of the TCI survey (Spring 2025 edition) continuing to track the confidence of the UK tech scene to help both SITS suppliers and end users understand market sentiment whilst planning and preparing for the period ahead. The report is also available to download to all who are interested without the need to have a TechMarketView subscription in place.
One of TechMarketView’s biggest strengths remains our ‘community’ of more than 20,000 technology industry professionals who read the daily UKHotViews newsletter. In the past, we have gauged opinions via our extensive conversations with CXOs within the industry. However, we would like to make sure we are casting the net wider and ‘taking the temperature’ of the UK tech market in a more consistent way, enabling us to monitor changes over time. As such, we would really appreciate your input by clicking on the link below and sharing your opinion with us.
Please share a few minutes of your time, as the quality of the data will depend on the number and variety of the responses we gather.
PLEASE CLICK HERE TO COMPLETE SHORT SURVEY
Posted by: Marc Hardwick at 09:18
Capita’s FY 2024 results out this morning were previewed back in December’s 11-month trading update (see Capita trims revenue guidance, but ups margin expectations). This morning’s results are on trend with the other Big (Public Sector) BPO players Serco and Sopra Steria who published their results in last couple of weeks and also experienced improving profitability on declining revenue (see Serco’s focus on profitability pays off and Sopra Steria navigates a wait-and-see market). All three firms have had to deal with a tricky market environment and have leant heavily on the levers of operational efficiency and tech/AI deployment.
At Capita’s Capital Markets Day presentation six months ago (see here), new CEO, Adolfo Hernandez outlined the company’s plans for “getting smaller to get stronger and fitter to then grow”. In this morning’s release he remains optimistic that the actions being taken will help to drive profitable revenue momentum from 2025 onwards. However, investors have yet to be convinced with Capita’s share price at the time of writing approximately where it was back in July 2024 (c.14p).
Highlights from the financials released saw adjusted revenue decline -8.0% to £2.4bn, reflecting the impact of prior year losses, some volume reductions in its Contact Centre business, and the cessation of lower margin service lines as planned. Adjusted operating profit increased 5.5% to £95.9m as major cost cutting initiatives and redundancies (delivering £90m savings) more than offset revenue decline. Some of the key profitability metrics improved such as reported profit before tax which was £116.6m (vs 2023 loss of -£106.6m), boosted by disposals of Capita One and Fera. Net financial debt reduced to £66.5m (2023: £182.1m) and importantly Customer net promoter score improved significantly to +28 points, up 12 points from 2023 – this has been a big area of weakness for Capita historically. Also, of note the firm’s contract renewal rate grew to 92%, up from 51% in 2023, demonstrating stronger client relationships.
CEO Hernandez has spent the last six months implementing his “Better Capita” strategy focusing on four key pillars:
TechMarketView subscribers can read more on our analysis of Capita’s financial results in UKHotViewsExtra (download here). If you are not yet a subscriber or are unsure if your organisation has a corporate subscription, please contact Belinda Tewson to find out more.
Posted by: Marc Hardwick at 08:50
Tags: results
Travel technology provider, Sabre Corporation has signed a new 13-year contract worth an estimated $1.56bn with its long-standing IT partner Coforge. Focused on accelerating the client’s pace of product innovation and delivery, the engagement will seek to fast-track the deployment of advanced AI solutions.
Texas-based Sabre is best known for its travel reservation system. This is used by over 50,000 travel agents and companies to search, price, book, and ticket travel services provided by some 400 airlines, over a million hotels, 38 car rental companies, 20 rail providers and 150 tour operators. With a turnover of c.$3bn pa, the company operates through a network of 57 offices around the globe. Sabre’s European headquarters is in Richmond, Surrey.
The scale of the win represents a significant step-up for the mid-tier offshore service provider. The closing of the deal with Sabre also adds a final flourish to what is proving to be an exceptional year for Coforge (see here). The company’s revenue is on track to grow by more than a third yoy in FY25 which ends in a few weeks’ time.
Posted by: Duncan Aitchison at 08:39
Tags: offshore AI travel contract award
The UK Government’s recent flurry of defence announcements—promising new innovation bodies, SME support hubs, and a pathway to spending 2.5% of GDP on defence by 2027—arrives at a critical moment for national security. But there’s a nagging question: Haven’t we seen similar initiatives before?
Since 2016’s “Advantage through Innovation” strategy, we’ve witnessed a proliferation of defence innovation units, accelerators, and funds—each promising to revolutionise how defence capability is developed and delivered. Yet many of the same challenges persist, with procurement timelines still measured in years rather than months and SMEs struggling to navigate the labyrinthine defence establishment.
A January 2025 House of Commons Defence Committee report highlighted this persistent “say-do gap” between MOD’s rhetoric on AI and actual implementation, concluding that defence must move from merely being “AI-ready” to becoming truly “AI-native” in its approach.
So, what’s different this time? Our analysis suggests the current geopolitical context, combined with a more explicit linkage between defence investment and economic growth, may create conditions for more meaningful change. The government’s parallel commitment to reduce international aid in favour of defence spending also signals a distinct shift in national priorities.
For technology suppliers, these developments present significant opportunities—if they can navigate the changing landscape effectively. Our UKHotViewsExtra – UK Defence Innovation: A New Era or History Repeating? | TechMarketView – examines how the various innovation bodies fit together, which technologies are being prioritised, and what strategies suppliers should consider to position advantageously.
As the House of Commons Committee emphasised in its report – Developing AI capacity and expertise in UK defence – in a world where strategic advantage increasingly depends on technological superiority, understanding the direction of UK defence innovation has never been more important. For suppliers in this market, knowing how to “sprint rather than sink” – as outlined in TechMarketView’s 2025 research theme (see TechMarketView Research Theme 2025: Sink or Sprint | TechMarketView) – could be the difference between breakthrough success and missed opportunity.
If you are a TechMarketView subscriber, you can read the analysis now. If you are not yet a subscriber – or are unsure if your organisation has a corporate subscription – please contact Belinda Tewson to find out how to access this and much more besides.
Posted by: Georgina O’Toole at 10:11
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How Amazon rebuilt Alexa with generative AI
Inventing Alexa+ required a series of technical breakthroughs, from getting LLMs to orchestrate APIs reliably to creating all-new agentic capabilities.
Written by Amazon Staff
February 26, 2025
3 min read
These new Alexa-enabled devices are designed to fit beautifully in your home, and make it easier to keep your day organized, your smart home connected, and your family entertained.
New ‘Ocelot’ chip uses scalable architecture for reducing error correction by up to 90% and accelerating the development of real-world quantum computing applications.
Alexa+ is our next-generation AI assistant that gets things done—it solves daily problems, keeps you entertained, helps you stay connected, and can converse about virtually any topic.
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Amazon just gave Alexa its biggest upgrade since debut – and you’ll want an Echo Show for it
Amazon’s early-year Devices and Services event took place just days ago, and the company made it clear that AI will continue to be at the center of its hardware universe. Driving the buzzword of the century is Alexa, arguably the most popular virtual assistant in the world. SVP of Devices and Services Panos Panay suggested that millions of new customers use it every day during the event.
Also: Everything you need to know about Alexa+, Amazon’s new generative AI assistant
And that’s likely true: Alexa is at the core of Amazon’s most prominent hardware products, including Echo speakers and Fire TVs. Today, the company showcased what’s next for its virtual assistant, now named Alexa+, as it looks to compete with the likes of Google, OpenAI, and others. The new Alexa will be “something that understands you, that can actually take action,” Panay teased, and it will work with tens of thousands of services from Amazon partners.
Here’s a rundown of the best new features coming with Alexa+ and how much it will cost.
Powered by LLMs, Alexa+ can now process visual information via your device’s cameras to understand and answer questions. In one instance, Alexa was asked to describe the crowd’s excitement and enthusiasm at the event by leveraging the Echo Show 15’s front-facing camera. While its responses were two to three sentences long, they were descriptive and dictated in a fairly approachable tone.
The agentic capabilities of Alexa+ extend to browsing, with the ability to navigate the internet via Alexa.com and complete tasks for you on Amazon-partnered websites. For example, Alexa was asked to book a professional repairman for a damaged appliance. It then searched for a nearby repair service and booked an appointment via Thumbtack.
Also: Amazon’s new Alexa+ companion devices coming this fall
In another demo, a presenter worked with Alexa to build out a shopping list, suggesting items to add or remove throughout the conversation. Surprisingly, the feature supported shopping partners beyond Whole Foods and Amazon Fresh.
As Alexa responds, a flowing blue animation appears on the bottom of the device screen. This new change reflects Amazon’s more expressive UI.
Besides responding more naturally, with sprinkles of humor, another big unveiling showed how Alexa can now fulfill tasks throughout your daily apps and services, including your calendar and emails. It can book a dinner for you and send invitations for that to your closest contacts, too. We’ve seen similar agentic capabilities with Google’s Gemini.
In a demo, the virtual assistant was asked to recommend local pizzerias, to which it pulled top-rated storefronts via Yelp. Another example included asking Alexa to remember things, such as “Mary likes Greek and Indian food and is vegetarian but doesn’t like peanut butter.” It did just that without a question.
Amazon also unveiled a series of new widgets alongside its refreshed Echo Show home screen, including ones that surface recipes, recent apps, weather, shopping lists, and connected smart home devices.
Also: 5 Amazon Alexa privacy settings you should change right away
The adaptive display leverages the larger screen real estate to display relevant information depending on whether you’re far away from the device or closer to it. For example, the Echo Show will display photos and personalized content from afar and switch to a more detailed layout when you approach it.
For a music demo, Panay asked Alexa, “What’s the song Bradley Cooper sings… it’s like in a duet?” to which it answered, “Shallow with Lady Gaga from the movie *A Star Is Born*.” More impressively, you can now dictate where music is playing from if you have multiple Alexa-enabled speakers in your house.
Also: The best Alexa devices of 2025: Expert tested and recommended
For example, you can ask Alexa to play music on the left or right, with the assumption that speakers are mounted in designated areas. We’ll have to see exactly how reliable this is in real-world tests. And for Amazon’s last trick, Panay asked Alexa to skip to the scene in the movie when “Shallow” is sung, and it did — on the second try.
Alexa now supports AI-powered video search, allowing it to process recordings by Ring cameras to answer questions. In a live demo, Panay asked the assistant whether anyone had taken out the dog yesterday or the day before, to which it sifted through past video libraries to determine the answer.
“You can now share just about anything with Alexa,” said Mara Segal, Director of Alexa. That includes dense legal documents, handwritten notes, school schedules, PDFs, and more, from which the assistant can process the content and answer related questions.
Also: How I feed my files to a local AI for better, more relevant responses
In another example, a school schedule was uploaded, and Alexa was asked to add dates for soccer practices to the calendar and suggest snacks that could be brought to them.
Amazon’s focus on kids-centric services extends to Alexa+, which now includes the Explore and Stories features. In a demo, the assistant was asked to create a story about funny animals. It followed up with a story about “Benny the Bearded Dragon,” accompanied by a series of AI-generated artwork.
How much does Alexa+ cost?
The upgraded Alexa service will cost $19.99 a month or be free if you’re an Amazon Prime member. It will officially roll out over the next few weeks and “subsequently in waves in the coming months,” according to Amazon.
Amazon says that Alexa+ will be available on all Echo devices, including the Show 8, 10, 15, and 21, with the exception of certain older generation Echo devices like Echo Dot 1st Gen, Echo 1st Gen, Echo Plus 1st Gen, Echo Tap, Echo Show 1st Gen, Echo Show 2nd Gen, and Echo Spot 1st Gen, where you can continue to use the original Alexa.
Also: Not all Echo devices will get Alexa+ initially – see if yours made the list
According to its press release, “You’ll also be able to try Alexa+ on your web browser, the Alexa app, compatible Fire TVs and Fire tablets. This experience is not currently supported on Alexa Built-in devices and Amazon Astro, however we look forward to expanding Alexa+ to additional devices in the future.”
