Cisco: The leading global partner for SAP innovation
SAP is the critical operational backbone of most enterprises and often their largest IT investment. Enterprise line of business managers demand agility to meet evolving customer requirements without compromising on security or reliability. How do SAP enterprises protect that investment while modernising their infrastructure without disrupting established business processes? Cisco’s tried and tested suite of SAP solutions can add new functionality to existing investments and improve performance while reducing TCO with an end-to-end modernisation approach.
Compute, network & software
“We have the complete portfolio for SAP customers so they don’t have to deal with multiple vendors,” assures Cisco’s Saroj Mohapatra. “Cisco takes investment protection very seriously. From the beginning, our solutions have been built to provide excellent value with scalability and agility. Cisco’s flexibility allows customers to start small and incrementally grow their suite of solutions, investing only when they need to with an approach that saves on CapEx and reduces OpEx.”
Cisco modernises SAP HANA and SAP legacy ERP application environments with solutions for on-premise and multi-cloud platforms offering unified management and monitoring, multi-layered data protection, cybersecurity and policy-based automation. “Compared to our competitors we shine because we look after the network for you; resolving any issues with latency to guarantee the response time needed for best practice with SAP, both today and in the future as customers migrate to HANA,” adds Mohapatra. Cisco is also working closely with SAP to leverage the power of AI and IoT. Elsewhere, recent acquisitions, such as AppDynamics, work seamlessly with existing solutions to detect performance issues with mission-critical applications like SAP. ThousandEyes, another addition to the Cisco arsenal, offers SaaS flexibility to enhance Cisco's network performance and monitoring capabilities across the enterprise and into the cloud.
A robust portfolio of end-to-end SAP solutions
Together, NTT, with its SAP consulting expertise, and Cisco deliver a modern and resilient solution to identify SAP customers' needs to fuel success with competitive value.
M&A activity key lever for future tech sector growth
Despite the continuing uncertainty of the pandemic, the tech sector has witnessed soaring dealmaking activity over the past year, rocketing in the second half of 2020, with the last quarter of 2020 a record one for M&A activity, and momentum continuing into 2021.
Dealmaking in tech sector soars in past year
And the latest figures bear this out with the number of technology M&A deals totalling US$208.44bn globally in Q1 2021, according to GlobalData. While the US holds top spot both in volume of deals (1034) and total value (US$140.61bn), Europe ranked next with 649 deals (US$44.49bn) with the UK continuing its reign as Europe’s biggest M&A market with 204 deals.
In particular, megadeals – those valued at US$5bn or more – soared in 2020 representing 59% of all global technology sector deal value in 2020, up from 47% in 2019, according to the latest edition of the EY Technology Global Capital Confidence Barometer.
This tech sector trend towards megadeals is backed up by EY’s CCB data, with 16% of tech sector respondents planning to pursue transformative deals valued at US$5bn or more in the near-term.
While technology deal activity “all but stopped at the beginning of 2020 after fluctuating between historic highs and lows, companies pivoted quickly and tech M&A exploded in the second half of the year”, says Barak Ravid, EY Global TMT Leader for Strategy and Transactions.
M&A activity level for tech sector growth
Looking ahead to the future, technology executives are optimistic, with nearly half (47%) expecting profitability to fully rebound this year, according to CCB data, compared to 23% across all sectors, and with more than half (51%) planning to pursue M&A in the next year in order to sustain growth.
According to Ravid, M&A activity is increasingly becoming a key lever for growth as businesses look to recover.
“To position themselves for future revenue growth, tech companies are now adjusting their M&A strategy to focus more on a target’s business resilience, digital technology alignment and to gain market share through consolidation,” says Ravid.
However, with an increasingly competitive deal market and ongoing geopolitical tensions, the majority of tech execs expect to see more competition in the bidding process for assets over the next year, primarily from private capital.