Feb 16, 2021

NETSCOUT – delivering solutions on shifting sands

NETSCOUT
Matt Demeusy
Bell
Paddy Smith
3 min
NETSCOUT – delivering solutions on shifting sands
NETSCOUT has been around for three decades. Matt Demeusy talks about working with Bell and why 5G implementation is exciting for the solutions provider...

NETSCOUT was established around 30 years ago, and has a history of providing solutions to businesses across packet and IP networks, particularly the latter. “We provide pervasive visibility across all areas of a business network, regardless of the technologies being deployed,” explains Matthew Demeusy, principal solution architect at NETSCOUT. “These services might be entirely on premises, they may be cloud services or it might be some kind of hybrid – the ability of NETSCOUT to monitor those across any sort of technology we call ‘visibility without borders’. NETSCOUT is the market leader in this space and its technology spans enterprise service provider and security markets.”

What does Demeusy believe is driving innovation in the telecoms sector? “There are two things that come to mind and they're somewhat related. One is the digital transformation to cloud and that's an ongoing process. And the second is 5G technology, and these are somewhat interrelated. As service providers drive toward these new technologies these networks will often go through several phases of evolution. And each phase requires assuring that the services are performing as expected. Any anomalies are detected and still the target initiatives are being achieved. This ends up being a great opportunity for NETSCOUT because we provide that visibility across those borders to ensure the service performance through every phase of that evolution.”

One of NETSCOUT’s long-term customers is Bell. Demeusy got involved around the time big data and analytics were climbing the Bell agenda; at the time NETSCOUT was developing its nGenius business analytics solution. He’s been working with them ever since. “I really enjoy working with Bell. I find that we are really easily able to get to the heart of our common objectives to ensure that Bell is getting its needs met, that it is getting the maximum amount of value out of the products. NETSCOUT gets to understand what those needs look like for Bell both today and in the future. And this is also really beneficial for NETSCOUT because it helps us understand what challenges are common across the various service providers, and which might be more specific to individual telcos. So we can think about how to make sure we're going to continue to meet those needs, the common ones, and the specific ones as well. This has been a really beneficial partnership for both of us.

“I think that the secret to a really successful partnership is having shared objectives between the parties and being able to communicate clearly and effectively to work together to achieve those objectives. NETSCOUT benefits from being able to understand what the customer is trying to do, and come up with solutions to get there as effectively as possible and understand specifically what challenges they might be seeing, or what challenges we might see across other areas of either this industry or other industries that we work with. Customers are going to benefit by extracting the maximum amount of value from their investments that they're making both in their networks and in the tools they use to assure the services that flow across those networks.”

And the future? “When it comes to the key trends and technologies, 5G is probably the big trend. Everyone thinks the transition to 5G from 4G LTE is very significant and wide reaching. This is not an overnight migration. It requires a lot of long-term planning, and there will be multiple transition periods from where networks are today and where they're going to be when 5G is fully realised. One critical thing that's on the mind of every service provider is that their existing services must remain up and performing all the time, even while the delivery mechanisms for the services are changing. This is a really good opportunity for NETSCOUT to provide the confidence to innovate for our users, so they can go through each phase and still know that they have visibility and service assurance at each step of the way on that network evolution.”

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May 15, 2021

M&A activity key lever for future tech sector growth

Technology
dealmaking
EY
M&Aactivity
Kate Birch
2 min
With M&A activity in the technology sector soaring, dealmaking is likely to be the key lever for growth as businesses look to recover post-pandemic

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.

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