DXC Technology DXC recently announced that it is partnering with Alphabet’s GOOGL Google Cloud to aid and enhance the digital modernization journey of enterprise clients on Google Cloud Platform.
The partnership will help clients to modernize their mission-critical IT and integrate digital solutions on Google Cloud. With this, Google Cloud joined the DXC Technology Partner Network as a strategic partner.
As part of the collaboration, DXC Technology also took its digital efforts a notch higher by launching a Google Cloud Platform Center of Excellence and a Google Cloud Artificial Intelligence Center of Excellence.
Reportedly, these platforms are aimed at providing clients secure, scalable and agile cloud-based digital solutions that utilize advanced data analytics capabilities.
DXC Technology Company. Price and Consensus
DXC Technology Company. price-consensus-chart | DXC Technology Company. Quote
Partnerships to Boost Client’s Cloud Transformation
Organizations are constantly putting in more efforts to accelerate their cloud transformation journey and scale digital strategies. In this process, demand for cloud-related services is growing remarkably. Notably, both DXC Technology and Google have prioritized clients’ need to sustain in a cloud-first environment.
Per Gartner, the worldwide public cloud services market is expected to grow 17.5% year over year in 2019 to reach $214.3 billion. The research firm also noted that currently, almost 19% of cloud budgets is spent on cloud-related services, such as cloud consulting, implementation, migration and managed services. This percentage is expected to increase to 28% by 2022.
Notably, DXC Technology continues to expand its digital transformation centers and capabilities as well as build on its collaborations with partners, namely Amazon’s AMZN cloud division, AWS, and Microsoft MSFT Azure.
Last month, DXC Technology announced that it is expanding its association with Microsoft by forming the global Microsoft Azure Digital Transformation Practice. The program will help clients shift their data and workloads to the Microsoft Azure public cloud more efficiently.
DXC Technology also works in partnership with Oracle and VMware in the cloud space, and the collaboration with Google Cloud expands its roster of strategic partners in the public cloud.
Backed by the industry trends and its own efforts, DXC Technology is seeing strong momentum in cloud infrastructure solutions, which grew 36% year over year in first-quarter fiscal 2020, with customers seeking cloud migrations and multi-cloud solutions.
Growing Cloud Partnerships Intensify Competition
With the onset of digital transformation across most industries, growing number of IT services firms are vying for partnerships to boost their relevance.
Earlier this year, Infosys announced that it is teaming up with Hewlett Packard Enterprise for using the latter’s GreenLake consumption model to aid clients' journey to hybrid cloud. In June, Sabre entered into a long-term contract with Microsoft as part of its strategy to move its services to the cloud.
Last month, Microsoft expanded partnership with ServiceNow with an aim to accelerate digital transformation.
Moreover, growing clout of Azure Infrastructure services is anticipated to challenge Amazon Web Services, currently dominating cloud market with similar deal wins, which include the likes of Okta and Splunk.
Notably, partnerships are helping competitors add stimulus to their capabilities in the cloud services market and ramp up presence. However, with a solid digital services segment and focus on forging strategic partnerships, DXC Technology is likely to fortify its presence in the cloud computing space and garner additional revenues.
DXC Technology currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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