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HCL TECHNOLOGIES DEALS UPDATE: WITH CISCO AND TEMENOS RESPECTIVELY

HCL Technologies, a well known software company in the past one week has made two deals.

1) HCL Technologies to acquire Cisco’s SON technology for around $50 million

2) Temenos and HCL Technologies sign 7 Years Exclusive Agreement to Market Temenos’ Multi experience Development Platform (Mxdp) to Non-Financial Services Enterprises


Details of both deals are shared below


HCL Technologies to acquire Cisco’s SON technology for around $50 million

HCL Technologies Ltd, a software service company announced its intent to acquire Cisco’s self-optimizing network (SON) technology for about $50 million (around Rs 377.93 crore).


What is SON?- The Cisco SON technology is a powerful platform that uses machine learning and a set of applications to automate the Radio Access Network (RAN). It helps customers boost performance, harmonize the multiple technologies that comprise a RAN, and maximize the capabilities of existing infrastructures, resulting in reduced capital and operational expenditures.

SON products & services will be used in telecommunication services offered by HCL. SON technology will thereby be used to further importance of 5G networks.


Terms of the deal known:All cash transaction, valued at $49-50 million. As part of the deal, some employees who work on Cisco’s SON technology will move from Cisco to HCL.[1]The transaction is expected to be completed by January 2021.


HCL’s decision to make this acquisition comes in line with their Mode 3 strategy.


WHAT ARE THE HCL MODES?

HCL Technologies is accelerating its evolution into a next-generation technology services firm through HCL’s Mode 1-2-3 strategy. HCL’s Mode 1-2-3 strategy helps future proof the customers' business, by deploying a concurrent, three-point spotlight on the existing core of their business, new growth areas as well as the ecosystems of the future.


MODE 1: Core Services

Under Mode 1, HCL delivers core services in the areas of applications, infrastructure, DPO and Engineering & R&D. Mode 1 is all about sustaining a leadership position and gaining market share in existing product or service offerings. It revolves around strengthening the existing core, be it through forging expansion into new markets or by digging further into existing markets.


MODE 2: Next Generation Services

Mode 2 is an immediate, high growth opportunity. This is where one needs to step up the game, realizing high acceleration and high growth business opportunities at the inflection points in your industry. This involves close study of the direction in which customer preferences are headed, the resultant changes in market landscape and potential impact on the business.


Mode 3: Products & Platforms

HCL continues to explore and enter into innovative IP-based partnerships, targeting specific next-generation opportunities.



Temenos and HCL Technologies sign 7 Years Exclusive Agreement to Market Temenos’ Multi experience Development Platform (Mxdp) to Non-Financial Services Enterprises


Temenos, a banking software company, and HCL Technologies, India’s third-largest software services firm on Tuesday announced the signing of an exclusive agreement for non-financial services.

As part of this agreement, HCL has been granted a license to develop, market and support Temenos multi-experience development platform (MXDP) for non-financial services enterprises. The pact has a seven-year exclusivity period.

Clients using Temenos MXDP for non-banking services will benefit from Temenos’ continued R&D investment in Temenos Quantum, the leading multi experience development platform (MXDP) and HCL’s world-class, global professional services and cross-industry expertise.

Temenos Quantum continues to be the technology foundation for Temenos Infinity, the most advanced omnichannel digital banking product. This agreement does not include Temenos Infinity.

Darren Oberst, CVP and Head of HCL Software, said that HCL Software will continue to grow its technology in a strategic way and will invest in innovation. "Temenos’ multi-experience development platform is the market leader and very complimentary to our portfolio. We’re excited about what the future holds, and the value this will bring to non-financial services enterprises.”


HCL FINANCIALS

For the quarter ended March 31,2020, the company reported consolidated sales of Rs 18,587 crore, up 2.49 per cent from last quarter sales of Rs 18,135 crore and up 16.24 per cent from last year same quarter sales of Rs 15,990 crore The company reported net profit after tax of Rs 3,172 crore in the latest quarter.

SHARE MARKET UPDATE OF HCL TECHNOLOGIES

Shares of HCL Technologies were up +0.48% at closing today on BSE, underperforing the broader Mumbai market. HCL Technologies shares traded +0.48% higher at₹563.20, giving it a market capitalization of₹1,52,833.62 crore.However, prior to the signing of 7 year exclusive agreement with Temenos, Shares of HCL Technologies were up by 3.38 per cent.



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