Amalgam Insights: 2019 Shaping Up as “Turbulent” Year for Technology Budgets, With Cost Controls Taking Center Stage

Technology Expense Management, analyst firm says, can help companies adopt a “more careful approach…and a cost-efficient working environment.”

A new report from industry analysts Amalgam Insights warns that this year will represent what it calls a “change for companies that have managed digital transformation & technology investment in bull markets” of the previous several years. But it says several sectors within the technology expense management (TEM) environment remain posted for significant growth, with the telecommunications industry leading the way, with a projected 15-20 percent spending increase.

Amalgam Insights chief analyst Hyoun Park authored the new report, saying the enterprise mobile sector spend will be a key driver. He says spending in this area should increase by as much as 15 percent in 2019, driven by what he calls “the incessant demand for mobile data from apps, video, music, and other persistent and constantly updating workloads.”

He also predicts that Amazon Web Services, Microsoft and Google Cloud Platform will continue to rake in more revenue, with an estimated run rate of $30 billion this year; he projects that amount could easily hit $50 billion in 2020.

Other predictions from the new Amalgam Insights report:

  • Software as a Service (SaaS) will be a $75 billion market by next year;
  • The Internet of Things (IoT) market will continue to be in flux, due to its complexity, with companies challenged to monetize the two billion non-cellular Internet of Things devices to be created for industrial, commercial, and enterprise; and
  • Most importantly, the technology expense market will double to more than two billion dollars over the coming year.

“Over half of enterprises do not have basic technology spend practices in place,” Park says. “The most frequent mistake these companies make is assuming that they’ve assigned a person to processing telecom invoices, so those people know how to manage and optimize telecom bills and contracts, which is usually not true.”

The full Amalgam Insights report is available for download at: https://amalgaminsights.com/product/analyst-insight-7-key-technology-expense-management-predictions-for-2019

Tangoe Acquires MOBI – Part III: Enterprise Considerations

Note: if you missed Part II of this blog series, catch up and read Part II: Why?

This is part of a four-blog series exploring Tangoe’s acquisition of MOBI.
Part I: Context for the Acquisition
Part II: Why?
Part III: Enterprise Considerations
Part IV: Market Considerations and Conclusion

 

Industries: Enterprise Mobility Management, Technology Expense Management

Key Stakeholders: CIO, CFO, Chief Digital Officer, Chief Technology Officer, Chief Mobility Officer, Mobility Directors and Managers, Procurement Directors and Managers, Accounting Directors and Managers

Why It Matters: Tangoe is the largest technology expense management vendor. By purchasing MOBI, Tangoe gains Managed Mobility expertise, a customer base with high customer satisfaction, and expertise in Robotic Process Automation to support enterprise mobility.

Top Takeaway: Tangoe continues to aggressively acquire market leaders both to increase market share and add Best-in-Breed capabilities, personnel, and technology to its technology management portfolio.

Tangoe Acquires MOBI

On December 5th, 2018, Tangoe announced the acquisition of MOBI, a leading managed mobility services organization based in Indianapolis, Indiana in the United States. With this acquisition, Tangoe increases its IT spend under management to over $40 billion, increasing its lead over other spend management vendors with multiple billions of dollars of enterprise technology under management including Flexera, Snow Software, Microsoft Azure Cost Management, CloudHealth by VMware, Calero, MDSL, Cass Information Systems, and Sakon.

Key Questions for customers to keep in mind that have not been answered as of publication:

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Tangoe Acquires MOBI – Part I: Context for the Acquisition

Industries: Enterprise Mobility Management, Technology Expense Management

Key Stakeholders: CIO, CFO, Chief Digital Officer, Chief Technology Officer, Chief Mobility Officer, Mobility Directors and Managers, Procurement Directors and Managers, Accounting Directors and Managers

Why It Matters: Tangoe is the largest technology expense management vendor. By purchasing MOBI, Tangoe gains Managed Mobility expertise, a customer base with high customer satisfaction, and expertise in Robotic Process Automation to support enterprise mobility.

Top Takeaway: Tangoe continues to aggressively acquire market leaders both to increase market share and add Best-in-Breed capabilities, personnel, and technology to its technology management portfolio.

Note: This is part of a four-blog series exploring Tangoe’s acquisition of MOBI.
Part I: Context for the Acquisition
Part II: Why?
Part III: Enterprise Considerations
Part IV: Market Considerations and Conclusion

On December 5th, 2018, Tangoe announced the acquisition of MOBI, a leading managed mobility services organization based in Indianapolis, Indiana in the United States. With this acquisition, Tangoe increases its IT spend under management to over $40 billion, increasing its lead over other spend management vendors with multiple billions of dollars of enterprise technology under management including Flexera, Snow Software, Microsoft Azure Cost Management, CloudHealth by VMware, Calero, MDSL, Cass Information Systems, and Sakon.

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Tangoe Acquires MOBI to Strategically Expand Enterprise Mobility Capabilities

On December 5th, 2018, Tangoe announced the acquisition of MOBI, a leading managed mobility services organization based in Indianapolis, Indiana in the United States. With this acquisition, Tangoe increases its IT spend under management to over $40 billion, increasing its lead over other spend management vendors with multiple billions of dollars of enterprise technology under management including Flexera, Snow Software, Microsoft Azure Cost Management, CloudHealth by VMware, Calero, MDSL, Cass Information Systems, and Sakon.

Key questions to consider for this acquisition include:

  • Why did Tangoe decide to buy MOBI at this time? For its customer base? Corporate culture? Technology?
  • How does this acquisition affect enterprises seeking toolsets to assist with the orchestration and accounting of digital transformation initiatives?
  • How will work be split and coordinated between Tangoe’s Austin logistics warehouse and MOBI’s Indianapolis-based facilities?
  • What will Tangoe do with MOBI’s Robotic Process Automation initiative of Mobots?
  • Will Tangoe keep MOBI’s staff or will there be a bunch of high-quality mobility and support staff available?
  • What happens to MOBI partners who may compete with Tangoe?
  • Will MOBI customers be moved to the Tangoe Matrix platform immediately?
  • Will Tangoe contribute to the burgeoning Indianapolis tech scene that is currently one of the hottest startup spots in the country?

To learn more about which of these questions can be answered and which of these questions require greater due diligence, please read my full analysis, which is available at: https://amalgaminsights.com/product/amalgam-insights-market-milestone-tangoe-acquires-mobi-to-enhance-mobility-management-capabilities

5 Stages of The Technology Expense Management Market (re: Calero Acquires Veropath)

In my recent Market Milestone, Calero Acquires Veropath to Bolster its Global Role in Technology Expense Management, I made a quick comment about Veropath as an “accretive acquisition target.” But then I realized that I hadn’t explained what that meant from an Amalgam perspective. From Amalgam’s perspective, the Technology Expense Market (aka Telecom Expense Management, although…

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Tangoe Makes Its Case as a Change Agent at Tangoe LIVE 2018

Key Stakeholders: CIO, CFO, Controllers, Comptrollers, Accounting Directors and Managers, IT Finance Directors and Managers, IT Expense Management Directors and Managers, Telecom Expense Management Directors and Managers, Enterprise Mobility Management Directors and Managers, Digital Transformation Managers, Internet of Things Directors and Managers On May 21st and 22nd, Amalgam Insights attended and presented at Tangoe LIVE…

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How does Zylo’s Series A Funding Round Affect the SaaS Optimization Market?

Note: This blog contains excerpts from an Amalgam Insights Market Milestone covering this funding round in greater detail. To get the full story, please download the report.

On January 23, 2018, Zylo, a SaaS (Software as a Service) Optimization platform based in Indianapolis, Indiana, announced a $9.3 million funding round led by Bessemer Venture Partners with participation from Salesforce Ventures and the Slack Fund. In addition, previous investors High Alpha Capital, GGV, SV Angel, and Hyde Park Venture Partners also participated in this round. Zylo has previously been covered by Amalgam Insights in multiple reports and webinars as a market leader in the SaaS Optimization space and this funding round marks Zylo as an early leader in the battle to manage enterprise SaaS spend.

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GSG Rebrands as Sakon and Launches the Sakon Platform

GSG Sakon Market Milestone

Note: This blog contains excerpts from Amalgam’s Market Milestone document. For the full story, including additional context and recommendations for Global 2000 organizations, purchase the full report.

Key Stakeholders: CIO, CFO, IT Finance, Telecom Managers, Network Managers, Mobility Managers, Software Asset Managers.

Key Announcement

On January 17th, Sakon, formerly known as GSG, announced the launch of the Sakon platform, a Software as a Service suite of six applications to support the following areas: Mobility and Internet of Things Service Management, Network Services, Cloud Applications Management, Expense Management, Sourcing & Transformation Management, and Insights and Intelligence. This platform will be available as an annual subscription to support telecom, network, IoT, and SaaS management needs for enterprise IT organizations.

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Calero Flexes PE Muscle in Acquiring TEM Stalwart Comview

Calero Logo

On December 29th, 2017, Calero Software acquired Comview, an experienced telecom expense management and call accounting software and services provider. Financial terms were not disclosed. From Amalgam’s perspective, this acquisition is important in demonstrating the plans of Calero under its new ownership, Riverside Partners, and in establishing Comview’s role in the Technology Expense Management market. With this acquisition, all Comview personnel other than Founder John Perri are expected to move to Calero. Calero has committed to supporting Comview’s solution for the immediate future. Comview is expected to run as “a Calero company” with independent development and operations in the short term.

Overall, Amalgam is bullish on this acquisition as it combines the strengths of a veteran TEM provider, Comview, with strong customer service and an integrated platform with the scale and breadth of Calero’s capabilities.

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Riverside Partners Acquires Calero: TEM in Transition

Calero Logo
Calero

On September 13th, 2017, Riverside Partners, a Boston-based private equity firm, announced the acquisition of Calero Software from Clearlake Capital. Calero manages more than $6 billion of annual telecom, mobility, and cloud spend for more than 3,000 customers in 40+ countries and provides managed mobility services for more than 400,000 devices, making it one of the largest technology expense management solutions overall behind Tangoe’s $38 billion+ in technology expense management and Flexera’s $13 billion+ in software expense management. (Cass does not break out its telecom spend, but Amalgam believes it to be similar in scale to Calero.)

This blog covers Amalgam’s perspective on:

  1. Why Clearlake sold Calero?
  2. Who is Riverside Partners, a relatively new player in the TEM space?
  3. What to expect from Calero going forward?
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