Bull Charges Into Telecare Sector
IT services provider Bull has secured two important new contracts within the French healthcare sector, leveraging the group's expansive cloud computing platforms. Bull is looking to double its EBIT margins over the 2014-17 period and, with BMI forecasting strong and steady growth in both IT services spending and government healthcare spending through to 2018, we believe the group is well positioned to take advantage of the government's desire to replace inefficient legacy data handling platforms with secure and cost-effective next-generation solutions across multiple industry verticals.
Under Bull's new 'One Bull' strategic plan for 2014-17, the group aims to become 'the enterprise operator for enterprise data' by developing solutions and services that allow clients to capture the full value of the data they create and use. Although large commercial enterprises are targeted by Bull's new cloud computing offerings, government agencies are also being targeted as the state releases more funds to expedite the replacement of legacy closed information-sharing systems with open, scalable platforms.
|New Deals Are Just The Tonic For Bull|
|IT Services And Healthcare Spending Trends|
Thus, BMI believes that Bull's appointment as a health data host for the national agency for shared healthcare information systems, ASIP Sante, represents a significant opportunity for the IT services specialist to promote the value of its cloud-based software-as-a-service (SaaS) proposition to key decision-makers within the French government and to open doors for the Bull portfolio within other government-supported industries. As part of the deal with ASIP Sante, Bull will position itself as an operator supporting telemedicine and the archiving and sharing of medical imaging data; its 'always-on' capabilities will reduce the time and costs involved in storing and retrieving complex data and allow for more detailed and collaborative analysis of patient data by specialists and general practitioners on a real-time basis. Accelerated and more accurate treatment schedules will ease the burden on drug procurement and distribution supply chains and reductions in the number of outpatient and personal consultations will cut costs borne by hospitals and local surgeries.
Bull has also been awarded a contract by the Upper Normandy Healthcare Consortium - which represents more than 30 health establishments - to implement an initial platform to respond to the needs in regional telemedicine plans. It will cover more than 500,000 medical consultations a year, representing up to 500 terabytes (TB) of data over five years. Bull will be working with medical imaging management and distribution company Global Imaging On Line as well as with telemedicine workflow solutions specialist Covalia.
Bull and its peers in the IT services and outsourcing market believe that healthcare, alongside financial services, logistics and infrastructure will be the bedrock for growth in demand for advanced data-sharing systems and that secure cloud-based products, such as the Bull Health Cloud solution, will be vital to meeting that demand. This underscores BMI's bullish outlook for growth in IT services spending in France, which we forecast to rise from EUR17.1bn in 2013 to EUR21.0bn by 2018. Meanwhile, we expect to see steady growth in government-related healthcare spending over the same period, rising from EUR185.8bn to EUR209.2bn.