Businessmodel of Atos

Customer Segments

Atos has a niche market business model, with a specialized customer segment. The company serves customers in the manufacturing, financial services, telecom & media, and public sector industries.

Value Proposition

Atos offers two primary value propositions: performance and brand/status.

The company has demonstrated strong performance through tangible results for customers. High-profile examples of these outcomes include the following:

• BP used Atos’ services to reduce the overall cost of application management by 7% year-over-year while consistently meeting service targets
• AT&S used Atos’ application management services to change the structure of its Russian delivery center, saving approximately 30% in costs per project
• Cineworld used Atos’ services to make enhancements to its subscription program, enabling it to reduce operational costs and attract thousands of new customers per month
• EDF Energy used Atos to replace its Data Processing System, enabling it to introduce the new ADACS solution that improved performance and is expected to operate for 20+ years The company has established a strong brand as a result of its success. It generated revenues of €10.7 billion in 2015 and has over 100,000 employees operating in 72 countries. Its Worldline division is the leader of the payments and transactional services sector in Europe. Its clients include 42% of the Global 500 and 20% of the U.S.* Fortune *500. Lastly, it has won many honors, including a leading position in the Experton Group/West Trax service provider Vendor Benchmark, ranking as a Top 10 Outsourcing Service Provider by ISG, and recognition as a “Leader” in the Gartner Magic Quadrants for Data Center Outsourcing and Infrastructure Utility Services in Europe (all in 2015).

Channels

Atos’ main channel is its direct sales team. The company promotes its offerings through its website, social media pages, participation in industry conferences, and sponsorship of events such as the Southeast Asian Games, the Commonwealth Games, and the Olympic/Paralympic Games.

Customer Relationships

Atos’ customer relationship is primarily of a personal assistance nature. Customers work in-person with company employees as part of its service engagements.

That said, there is a self-service component. The company’s website includes a number of self-help resources, including white papers, magazines, and newsletters.

Key Activities

Atos’ business model entails designing and developing IT services for its customers.

Key Partners

Atos maintains alliances with firms in the infrastructure, software applications, and consulting fields to strengthen its offerings in these areas. Its specific partners are divided into the following three categories:

• Global Strategic Alliances – Partners are Siemens, Enhanced Alliance, EMC, VMware, VCE, Pivotal, RSA, Virtustream, Xerox, Dell, Cisco, SAP, Microsoft, and Oracle
• Global Strategic Business Partners – Partners are HP, IBM, and Citrix
• Other Business Partners – Partners are RedHat, Hitachi, Pega, InfoStretch, Salesforce, ServiceNow, Typesafe, and Newgen ### Key Resources

Atos’ main resources are its human resources, who include over 700 R&D employees that design and develop its services and consulting employees that help clients with implementation. The company also places a high priority on intellectual property, with over 2,000 patents worldwide.

Cost Structure

Atos has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent service improvements.

Its biggest cost driver is likely cost of service. Other major drivers are in the areas of sales/marketing and R&D, both fixed costs.

Revenue Streams

Atos has one revenue stream – the fees it charges for its various services, which include implementation, consulting, and ongoing support.