Atos - Registration Document 2016

B Atos positioning and strategy B.1 Market trends

Market trends

B.1

Digital transformationmomentum is real

B.1.1

“pivotal time” with new digital services and smart products representing a high and fast growing market. trillion of worldwide spending on digital transformation initiatives. 2016-2017 is perceived by industry analysts as a now forecasting that this trend will intensify over the next three years, now reaching B2B companies with a prediction of $US2.2 enterprises especially B2C players will incorporate a digital transformation project in their corporate strategy by 2017, are continues to drive fundamental business and organizational changes. Analysts who were forecasted last year that 2,000 In line with previous Atos analysis, the digital transformation through cloud orchestration, to autonomics and cognitive solutions. Atos expects that at the end of 2017, over 70% of the With Digital transformation, clients will move from legacy, highly depend on their capacity to create digitalized products, services and experiences. fortune 500 will engage in deep digital transformations, and by 2020 the business success of 50% of the fortune 2,000 will expected to grow at 30% per year, in each of its IaaS (Infrastructure as a Service), SaaS (Software as a Service), Cloud is at the heart of the third digital revolution, and is PaaS (Platform as a Service) components, compared to the 3 to 5% growth of the overall IT market. This significant growth is brokers, a domain in which Atos is ideally positioned. according to IDC predictions, over 70% of cloud services providers’ revenue will be mediated by channel partners and spending will be on cloud-based offerings. By which time, 2015, and is expected to reach $US236 billion by 2020. Also by 2020 two thirds of all enterprise IT infrastructure and software primarily due to the success of public cloud. The global public cloud market will reach $US146 billion in 2017, doubling from the underlying flexibility required to get the business agility Companies have understood that moving to cloud will give them B.1.2

competition, and not enough collaboration with few solutions binding everything together as a single, user experience. But had been somewhat slowed until now, by a high level of The expected revolution brought by the Internet of Things (IoT) and resulting interconnectedness of smart home technology etc. now that tier one global players are getting heavily involved, the Group expects major advancements in 2017 and beyond. information is not consumed faster than the ability to recognize it as outdated, irrelevant or inaccurate. co-ordinate the system but also require ability to audit the collection, distribution, and vetting of data. Therefore that Improved digital capabilities open up new windows of opportunity, which in turn increase the need to maintain and accompany them in the digital transformation, providing greater security, compute speed, application transformation, and As a consequence, enterprises are looking for strong partners, to workplace, Cognitive analytics, security, and data privacy. collaboration. To adapt the demand, the market in which Atos is shaping will focus on Cloudification, ERP transformation, Digital of the overall IT environment. Cloud mutualized infrastructure and automation are bringing enterprises cost reductions that invested hundreds of millions, and that they cannot just replace in a few months. This requires hybridization, and orchestration infrastructure. But, in a coordinated manner, that ensures they will still get value from their legacy environment in which they benefits of the cloud by modernizing both applications and elements of the enterprise IT landscape cannot be moved to the cloud. As a consequence large enterprises are willing to get the necessary to survive in the digital world. However some key they can reinvest in new digital solutions. The hybrid cloud market is projected to reach USD 92 billion in 2021 from the current value of USD 33 billion at a CAGR of 23% for the period 2016-2021, which is much faster than the overall IT market.

The ever increasing demand for Cloudification

Trusted partner for your Digital Journey

22