LOGICALIS DIVISIONAL REVIEW

PURPOSE

Logicalis exists to accelerate its customers’ business objectives, keeping them relevant in the digital economy and directly contributing to their success. This vision is central to Logicalis’ strategy which is executed while living its values.

CORPORATE OVERVIEW

HOW LOGICALIS CREATES VALUE

Logicalis’ go-to-market strategy is based on delivering the desired business outcomes of its customers. This is achieved through the implementation and delivery of a variety of technology solutions and services. Logicalis works with both IT and line-of-business stakeholders to align technology investments with business strategy, driving critical business objectives through the adoption and application of technology for competitive advantage.

Customers’ business outcomes often revolve around the following areas:

• Connecting its clients with their customers
• Empowering employees
• Optimising operations
• Transforming business and operating models

Logicalis’ solutions have been specifically designed to achieve these outcomes. These include technologies such as cloud, security, digital workspace, data and IoT.

A key element of the Logicalis value proposition is its extensive service portfolio. Services include product integration and associated professional services, lifecycle and managed services and cloud solutions, with a focus on embedding security across all technology offerings. Logicalis delivers consistent, digital global services using shared, best practice platforms.

Logicalis maintains an environment of honesty, transparency, fairness and high-moral standards which encourages initiative and provides opportunities for its people. Change and creativity are embraced to deliver the best practical outcomes. Logicalis strives to exceed expectations and be the best while maintaining the highest level of quality. It relies on the strong relationships and alliances that it has built to achieve success in the long term.

Logicalis’ goal is to be a strategic partner to businesses, enabling them to operate more effectively, and supporting them as they contribute to the strategic development of their organisation.

IMPACTS OF LOGICALIS’ EXTERNAL ENVIRONMENT ON ITS ABILITY TO CREATE VALUE

Numerous factors, such as global economic and political conditions, lower growth in the markets served, increased competition, risks related to new technologies, reliance on a limited number of strategic vendors and the scarcity of available suitably qualified technical and leadership talent could all impact Logicalis ability to create value.

However, the current most pressing factors are the ongoing global semiconductor shortages and increasing supply chain constraints. These have caused inventory build-up and significant backlog of undelivered orders. These global constraints are widely expected to persist for the near future (into FY23 at the very least). Ongoing demand for software and services in on premise networking and infrastructure will be held back, at least initially, by supply chain constraints limiting Logicalis’ capacity to fulfil demand.

OPPORTUNITIES

According to IDC, technology is again being seen as the great enabler, unlocking dynamic, intelligent and agile work models, and places. Clients are looking to take advantage of technology to build a more engaged workforce with better balance, leverage cloud for operational efficiencies and innovate to provide a strong foundation to build a flexible infrastructure which can outpace competitors.

Wider adoption of technology brings with it a cyber threat landscape that continues to expand and evolve, becoming increasingly sophisticated. Clients are struggling to manage with the requirements to detect new threats, and indeed to understand exactly what they need to protect their business.

Logicalis is ideally suited to supporting these challenges, especially because of the scarcity of qualified talent.

We continue to be in a period of profound digital transformation with exponential ongoing technology change. To leverage this new era, Logicalis is investing in assets, platforms, and solutions, building on current capabilities in cloud, security, digital workplace, network connectivity and data, with capabilities in new, innovative technologies including 5G, edge computing and artificial intelligence AI.

Another area growing in importance, is sustainability. While all businesses will need to become sustainable over time, most are still unsure of how to achieve that goal. To help its clients, Logicalis is working towards launching sustainability measures for all our global solutions.

MARKETS

Even though global trading uncertainties are expected to persist for the short to medium term, Logicalis is confident in its ability to continue to respond to market needs caused by post Covid-19 changes to working practices, current economic and conflict disruptions. The technology segments that Logicalis specialises in are key parts of cloud infrastructure and the remote access computing and collaboration solutions necessary for enterprises to adjust.

While Logicalis is ideally positioned to continue to respond to changing market needs as technology plays an even more integral role in the global economy, the supply chain shortages experienced as the world emerged from the Covid-19 pandemic remain mostly unresolved. This, coupled with recent geopolitical issues such as the war in Ukraine, energy prices, economic uncertainty in South America and China’s ongoing response to Covid-19, have created a lot of uncertainty, both in the short and medium term, which will impact on the division’s performance.

OUTLOOK

Logicalis continues to develop its capabilities within cloud, digital workplace, security, and intelligent networks in support of its strategy to provide full lifecycle services around IT infrastructure solutions to its customers.

The future will likely involve hybrid workplaces of part-time office and remote workers. Preparing and planning for this environment will be essential in providing a better digital experience for customers, partners and employees.

Logicalis remains confident about the long-term prospects for the industry and its positioning within it. Over the short term, macroeconomic conditions are expected to remain volatile. Logicalis is currently facing the severe impact of supply chain issues, particularly on the South America business. This is not only causing delays to revenue recognition but also leading to changes in customers’ purchasing preferences based on availability.

AWARDS AND RECOGNITION