What Competition Does Novosco Face in the UK Cloud Technologies - Case Study Example

? WHAT COMPETITION DOES NOVOSCO FACE IN THE UK CLOUD TECHNOLOGIES, MANAGED SERVICE, AND CONSULTING MARKET? Table of Contents Terms of Reference 3 Procedure 3 Findings 3 Novosco 3 Novosco Competition among Cloud Technologies, Managed Service, and Consulting Companies 4 SWOT Analysis for Novosco 5 Strengths 5 Weaknesses 6 Opportunities 6 Threats 7 SWOT analysis Table 7 Conclusion 8 Recommendations 9 Bibliography 10 Terms of Reference This is a business report on Novosco, which is a UK, based company that deals with cloud computing and IT infrastructure services. I am writing this report for academic purposes and for interested businesspersons dealing with information technology and internet services. I should submit the first draft in week 8 and the final draft in week 9. Procedure I relied on secondary research, which is available in the computer and IT field. I analyzed and compared different sources as well as the website of the reference business to derive relevant information. My sources are relevant, up-to-date, authoritative, and efficient to address the competition that Novosco face in the UK cloud technologies, managed service, and consulting market. Findings Novosco Novosco is a company based in Belfast U.K (ULSTER Business 2013, p. 1), which deals with cloud technologies, managed service, and consulting services. The company has been in operation since 1994 and has recorded immense growth and success over the years (Novosco 2013, p. 1). As a result, the company has won major recognitions in its operations like the Cisco Datacenter Partner of the Year and EMC Partner of the Year in 2012 based on the volume and caliber of work delivered (Novosco Ltd 2012, p. 21). Moreover, the company has been enjoying consistent and immense economic growth in the technology industry. In fact, Novosco received the Deloitte FAST50 award in 2012 for the 13th consecutive year for being the most successive technology company in revenue growth (Novosco Ltd 2012, p. 21). The company manifests high level of technical ability where it investment in delivery and support staff (Novosco 2013, p. 1). Indeed, the company accommodates continuous training and certification in its operations with a view of gaining optimum expertise and receiving maximum accreditation on the technologies they recommend to their customers (Novosco 2013, p. 1). Novosco specializes with helping institutions to utilize the unique aspects of emerging technologies for purposes of addressing business challenges in a more efficient and cost-effective manner (Novosco 2013, p. 1). It provides unique consulting talent and technical support to organization seeking to maximize the advantages of their investment in information technologies. Notably, the company operates under managed service or strategic partnership contracts with its major clients to realize its objectives (Novosco 2013, p. 1). As such, it collaborates with the best hardware and software companies that deal with cloud technologies, managed service, and other technology applications. The company commits itself to offering help to their clients in the evaluation of all potential solutions that enables them to design and deliver cost-effective solutions (Novosco 2013, p. 1). Its main clients include universities, government departments, and UK and Ireland health trusts (Weir 2013, p. 1) with Belfast Health and Social Care Trust being its largest client (Gosling 2012, p. 1). Novosco Competition among Cloud Technologies, Managed Service, and Consulting Companies Novosco is the leading provider of managed services and cloud based infrastructure in U.K (Novosco 2013, p. 1). However, the company faces immense competition in different sectors including the winning of contracts. Novosco seeks to enroll its services to the wider market and its directors know that it will face stiff competition from established companies (WEIR 2013, p. 1) like AJUBEO and CDNETWORKS. The competition will be in the field of internet connectivity, supply of cloud computing, transfer of data, servicing multiple sites among other domains. Moreover, there is competition in the number of specialist engineers that the cloud computing and IT infrastructure companies will be using to serve their clients (Gosling 2013, p. 1). As such, the company is competing to hire the best staff in the industry to perform better in the competitive market. The company is also in the competition of offering better, cheaper, quicker, and efficient services to the growing number of clients (Gosling 2013, p. 1).The company faces competition in maintaining consistent turnover growth in the technology industry as recognized in the Deloitte Fast 50 award (Gosling 2013, p. 1). Novosco is equally facing immense competition in terms of area of coverage, its potential to serve many clients, and the scope of its services. Notably, Novosco is mainly serving in Ireland and United Kingdom while its competitors have a wider network and more employees. For instance, CDNETWORKS is a worthy competitor who offers its services across the globe. Indeed, CDNETWORKS has a cloud-based network, with more than 100 points of presence across 6 continents (CDNetworks 2013, p. 1) compared to Novosco which operates in one continent. On the other hand, AJUBEO offers immense competition to Novosco in terms of experience where the executives of AJUBEO have more than 60 years of enterprise IT experience (Ajubeo.com 2012, p. 1). More so, Novosco has a small client base compared to its worthy competitors like CDNETWORKS, which serves more than 1,100 companies across the globe (CDNetworks 2013, p. 1). However, the most significant competition that Novosco faces is in the provision of high-performance cloud infrastructure, integration, and compliance of modern businesses, cost-effective services, and flexible cloud computing and IT infrastructure services. SWOT Analysis for Novosco Strengths The company has been in successful operation for 19 years since its inception. Indeed, it has recorded immense growth in sales turnover where it has scooped the Deloitte FAST50 for 13 consecutive years for leading in revenue growth in the technology industry (Novosco Ltd 2012, p. 20). The company offers IT services to both public and private sector organizations across U.K and Ireland thus its wide customer base. The company invests in training, development, support staff, and service delivery to offer high quality services in cloud computing and IT infrastructure (Novosco 2013, p. 1). It also invests in certification where it seeks to achieve the set standards in the technology industry. In fact, it has lately invested in providing a better 'Cloud stream' (Weir 2013, p. 1). The newest investment at Novosco is in its own fiber-optic ring in Belfast, which will enable it to improve its operations. Novosco has immense technical ability where it employs more than 80 expert engineers in its branches (Weir 2013, p. 1), which is somehow more than the workforce in some of the larger companies is. Its technical staff depicts expertise in effective processing, storage and networking. The company manifests optimum levels of accreditation on the technologies it proposes to its clients and hence its market advantage (Novosco 2013, p. 1). The management and organization structure of Novosco manifests immense experience and professionalism as most of its directors have substantial knowledge and experience in technology industry (Novosco 2013, p. 1). The company stands out as the leading provider of managed services and cloud based infrastructure. It also boasts of various wards and international recognitions in the technology industry. These include the award of the highest certified EMC Value Added Reseller (VAR) in Ireland, the Cisco Datacenter Partner of the Year and EMC Partner of the Year in 2012, which related to its success in volume and caliber of work (Novosco Ltd 2012, p. 20). It is also the best place to work in IT on the island of Ireland according to the ICT Excellence Awards 2013 in Dublin (Novosco 2013, p. 1). The company has consistent commitment to provide the highest level of technical expertise and quality of service to its clients. Moreover, it has a wide range of clients, which include universities, government departments, and UK and Ireland health trusts (Weir 2013, p. 1). It leads the technology industry with innovative connectivity service and has business analysts who have immense knowledge in the complexities of successful delivery of cloud and legacy projects (Novosco Ltd 2012, p. 3). The company collaborates with the best hardware and software enterprises like Cisco and VMware (Novosco 2013, p. 1). Ultimately, the company marks 20 years in the business arena with an accolade of being the fastest growing company in the technology industry (ULSTER Business 2013, p. 1). Weaknesses Novosco has been offering its services to a select group of leading businesses in U.K and Ireland, which is detrimental in that an economic or political instability in the two regions would ground the operations of the company to a halt. Its Dublin branch is facing many challenges subject to the economic difficulties in the Republic. The company operates in only one continent. It also has a small client base compared to its worthy competitors serve their clients across the globe. The company has no mechanism to deal with external factors that would influence its operations. Opportunities Novosco achieved the EMC Signature status, which is the highest level of the EMC Velocity Partner Program. This achievement creates new possibilities for the company, as it will be able to strengthen its professional services and deliver faster returns on investment to its clients. It also formed a strategic alliance with Hibernia Atlantic, which deploys the high-speed communications network connecting North America, the UK, and Europe thus enhancing its market presence and effectiveness (Weir 2013, p. 1). Novosco is expanding its operations to the wider market to provide competition and expend its market coverage. The newest investment on the fiber optic ring by the company will enable it to provide the lowest priced fiber Ethernet service to enterprises (Weir 2013, p. 1). The company is also seeking to adopt the best strategy in the technology industry by employing the best engineers in the industry. Novosco expanded its services to two new branches, which include Dublin and Birmingham where the Birmingham is only one year old, and with a huge growth potential (Gosling 2012, p. 1). Moreover, its largest client, the Belfast Health and Social Care Trust is in the process of expanding its business to potentially large and profitable new stream areas (Gosling 2012, p. 1). Novosco has already secured three new private sector contracts in the UK and Ireland worth more than ?7m, which will consequently, boosts its revenue growth (ULSTER Business 2013, p. 1). Indeed, the company succeeded in acquiring over 12 deals this year. Ultimately, major firms like Mivan, Tayto Group Ltd, and O’Neill’s are now relying on Novosco, which increases its market dominance (Novosco 2013, p. 1). Threats The company is subject to immense competition from worthy competitors in the technology industry. The company is yet to gain global recognition. Economic challenges in the Republic will jeopardize its operations in Dublin. Ultimately, its partnership with the best hardware and software vendors may limit is power and recognition in this field. The partner may decide to end the partnership or decide to enter the cloud computing and IT infrastructure to Novosco’s disadvantage. SWOT analysis Table Strengths 19 years market presence 13 consecutive years of increasing and consistent revenue growth Investment in training, development, service delivery, and service staff High quality service and accreditation on proposed technologies Own fiber-optic ring in Belfast Wide range of clients Expertise in effective processing, storage and networking Immense technical ability Fundamental partnerships Significant business and technology awards Stable and experienced management Weaknesses Offering services to a select group of leading businesses in U.K and Ireland Small client base Economic challenges at the Dublin branch Opportunities Achievement of the EMC Signature status A strategic alliance with Hibernia Atlantic Expanding its operations to the wider market Investment on the fiber optic ring Expansion to Birmingham which has a huge growth potential Business expansion by Belfast Health and Social Care Trust Securing the three new private sector contracts worth more than ?7m Major firms switch to Novosco in business broadband market Threats Immense competition from worthy competitors Lack of global presence Economic challenges in the Republic The partnership with the best hardware and software vendors Conclusion I find that Novosco is a very significant company dealing with cloud computing and IT infrastructure in U.K and Ireland. Moreover, the company has managed to record consistent and increasing revenue growth for 13 consecutive years in its 19 years of operation. This relates to the high quality services it offers and the accreditation it receives. It has also won numerous awards in the business and technology world. The company serves a wide range of clients although it has only two branches. The company collaborates with major companies in hardware and software development as well as establishing alliances with the providers of high-speed communications network. However, the company faces huge competition from companies like AJUBEO and CDNETWORKS. Moreover, the economic challenges in U.K limit its growth. Recommendations The company should consider expanding its operations to other destinations across the world to limit the effects of economic challenges in Europe. The company should diversify its operations since the market has many dominant players offering services in cloud computing and IT infrastructure. The company should adopt the strategy of hiring the best engineers in the industry to improve its market advantage. The company should maximize its partnerships and alliances to improve the effectiveness of its services. It should also utilize its own fiber-optic ring in Belfast to ensure that it provides cheaper, better, and timely Ethernet services. It should equally devise a market strategy to address the competitors and the economic challenges in the Republic in relation to its operations. Bibliography Ajubeo.com 2012, Overview, Retrieved 1 November 2013, CDNetworks 2013, Company Overview, Retrieved 1 November 2013, < http://www.cdnetworks.com/company/> Gosling, P 2012, Novosco's succeeding where others have failed, Belfast Telegraph, Retrieved 1 November 2013, Retrieved 1 November 2013, < http://www.belfasttelegraph.co.uk/business/small-business-can/novoscos-succeeding-where-others-have-failed-29006345.html> Novosco 2013, About us. Retrieved 1 November 2013, < http://www.novosco.com/about-us/> Novosco 2013, Major firms switch to Novosco in business broadband market. Retrieved 1 November 2013, < http://www.novosco.com/major-firms-switch-to-novosco-in-business-broadband-market/> Novosco 2013, Major firms switch to Novosco in business broadband market, Retrieved 1 November 2013, < http://www.novosco.com/major-firms-switch-to-novosco-in-business-broadband-market/> Novosco 2013, Novosco Named Best Place to Work in IT in Ireland, Retrieved 1 November 2013, < http://www.novosco.com/novosco-named-best-place-to-work-in-it-in-ireland/> Novosco Ltd 2012, Business Analysis Service Definition, Retrieved 1 November 2013, < http://assets-production.govstore.service.gov.uk/Giii%20Attachments/Novosco%20Ltd/Bids/Archive1/Novosco%20Service%20Definition%20Business%20Analysis.pdf> ULSTER Business 2013, Novosco wins new contracts worth ?7m, Retrieved 1 November 2013, < http://www.ulsterbusiness.com/articles/2013/10/21/novosco-wins-new-contracts-worth-7m> Weir, C 2013, Novosco offers businesses high-speed internet service, Belfast Telegraph, Retrieved 1 November 2013, < http://www.belfasttelegraph.co.uk/business/news/novosco-offers-businesses-high-speed-internet-service-29549420.html> Read More