TCS posted industry-leading financial results in its FQ4 2013 report. But what caught my attention was its quarterly guidance to investors where management stated they believe TCS can add “a few billion dollars” from digital as a growth driver. Really? Just a few billion? We believe TCS is substantially underplaying its digital hand.
Management talked constructively about taking the digital business area seriously. But they are guiding to only modest aspirations, almost a mere morsel of the market share potential in the seismic disruption cloud and digital are creating.
Although we recognize TCS’s need for measured conservatism and modesty in investor guidance, we at Everest Group feel no such need. We believe TCS is strongly positioned to exceed the modest goal of a few billion. Here’s why: From our industry analysis, we predict that 30-50 percent of workloads will migrate from traditional infrastructure models to cloud-based models.
As this occurs, we expect that TCS will garner substantially more than a few billion dollars of revenue.