Editor’s note: Elitsa Bakalova is a Senior Analyst at Technology Business Research. This is the first of a two-part look at emerging hot spots in tech services.

HAMPTON, N.H. – Data is exploding, and vendors are preparing to accommodate this trend by effectively managing, storing, securing and analyzing data and by driving business results through next-generation solutions.

During Atos’ Technology Days, recently, Atos CEO Thierry Breton stated that while 80% of data is currently stored in data centers and in the cloud, that percentage is forecast to shrink to 20% by 2025 as clients seek ways to analyze data in real time at the edge, where it is created. Pioneering emerging technology development, such as IoT, edge computing and quantum computing, enables vendors to expand their addressable market and cross-sell and upsell their services offerings.

While traditional IT services remain key revenue contributors for many of the 29 IT services vendors that TBR covers in its IT Services Vendor Benchmark, portfolio innovations create new areas of growth. Gaining a first-mover advantage in emerging segments enables vendors to attract clients with practical use cases for new technologies across industries.


While IoT solutions will often span several services, they are usually confined to one vertical, guiding vendors’ IoT-led partnerships and portfolio development. IoT intrinsically cuts across both vendor and customer categories, transforming and connecting business operations. Vendors expand their portfolios to guide customers on how to implement and manage IoT solutions.

The quantum race: IBM, other vendors strive to be a first mover in emerging space

However, some vendors lack portfolio depth around critical IoT capabilities, such as operational technology (OT), and predictive analytics and data management, that allow customers to proactively manage equipment and reduce costs associated with downtime. To fill these portfolio gaps, we expect vendors to forge relationships and make acquisitions that support development of vertical-oriented IoT solutions.


Fujitsu partnered with Coast Research Engineering Co. to develop an IoT solution for aquaculture and marine clients. The solution will monitor water quality and temperature from aquamarine tanks to support aquaculture. Fujitsu RunMyProcess partnered with IoT.nxt to improve data collection and analytics within Fujitsu’s high-productivity application PaaS (hpaPaaS) and to automate operational processes. The partnership will improve Fujitsu’s ability to collect and analyze data from various devices and sensors by standardizing and filtering data.

Wipro announced the opening of its third Industrial IoT (IIoT) center of excellence in March in Kochi, India. Wipro is using the centers, which are also located in California and Bangalore, India, to develop proofs of concept and market-ready solutions for IIoT customers. Further, Wipro has been leveraging the centers to attract local talent from universities through various initiatives such as hackathons.

The acquisition of Altran announced on June 24 expands Capgemini’s engineering and R&D services capabilities and complements the company’s established consulting and IT capabilities. Capgemini is positioning as an “intelligent industry” vendor that can provide solutions around Engineering 4.0 and Industry 4.0. and expand in smart technology-driven segments such as IoT, AI, 5G, cloud, edge, data and cybersecurity.

The key for this transaction is that while Capgemini has well-established IT expertise as well as digital transformation and design and innovation consulting capabilities in Capgemini Invent, the company gains Altran’s OT capabilities, a competence that was not developed for Capgemini but is a key component in IoT models.

TBR notes that Capgemini is catching up with some of its peers in IoT. For example, Capgemini’s direct competitor Atos already has a history in OT as a result of its acquisition of Siemens’ IT Solutions and Services business and its global strategic alliance with Siemens AG has given it a head start in IoT; Atos has increased its investment in current joint efforts with Siemens in IoT.

In February Capgemini partnered with Idemia, a provider of AR solutions, to develop an IoT device management platform that strengthens security and connectivity of devices and data. The platform will be based on Capgemini’s IoT device management platform, X-IoT, which securely connects and manages gateways and protocols to the cloud, and on Idemia’s M-Trust solution.

Coming next: The latest in quantum computing