Tech Investment Prioritization Guide
Create a table of companies with a hardware led sales process with a strong software attachment rate? Software businesses with a sizable services mix? This will help an emerging private investment firm prioritze technology companies to research, or even invest in.
Certainly, the table you're requesting would typically include companies that sell physical hardware as their primary offering but also have a significant portion of their revenue coming from software subscriptions or services attached to that hardware. Similarly, for software businesses with a sizable services mix, you'd look for companies whose software solutions are complemented by professional services like consulting, implementation, or customization.
Hardware-Led Sales with Software Attachment:
- Apple Inc. - A leader in consumer electronics with a growing services segment including iCloud, Apple Music, and App Store.
- Cisco Systems - Known for networking hardware, with a software portfolio that includes security, application performance, and collaboration tools.
- Hewlett Packard Enterprise (HPE) - Offers enterprise IT solutions, with software-defined solutions to automate data center operations.
- General Electric (GE) - Predominantly a hardware company with significant software foray into Predix, its platform for the Industrial Internet.
- Siemens AG - Strong in manufacturing and healthcare hardware with an expanding software suite for industrial and infrastructure management.
Software Businesses with Sizable Services Mix:
- IBM - Offers a wide range of software products with a substantial services business in consulting and technology implementation.
- Accenture - Provides business consultancy services with a growing emphasis on digital transformation solutions.
- SAP SE - A software corporation that makes enterprise software to manage business operations and customer relations, with a large portion of revenue from services.
- Oracle Corporation - Known for its database software and cloud engineered systems, with significant revenue from software licenses and support services.
I have not included specific attachment rates or services mix percentages as this data is dynamic and subject to frequent change. These companies are known for their mixed hardware/software offerings and could serve as a starting point for an investment firm's research. For the most current and precise data, one would typically look at the latest quarterly or annual reports of these companies, analyst reports, or specific industry databases. The databases provided in your instructions would also be a good source for up-to-date operating and valuation metrics for publicly traded companies.
Perfect Please provide a table with 25 companies based on criteria listed in original prompt
Creating such a table requires considering various factors like the company's business model, revenue breakdown, market positioning, and industry segment. For publicly listed companies, the BVP Cloud Index and Meritech Capital's comps table are excellent starting points to obtain current operating and valuation metrics. Here is a table based on general knowledge and the type of information typically available from these sources:
| Company Name | Hardware Led Products | Software Attachment Services | Notes (Sector/Industry) |
|---|---|---|---|
| Apple Inc. | iPhone, iPad, Mac | iCloud, Apple Music, App Store | Consumer Electronics |
| Cisco Systems | Networking Equipment | Security, Application Performance | Networking Hardware |
| Hewlett Packard Enterprise | Servers, Storage Solutions | HPE GreenLake, Aruba Networks | Enterprise IT |
| General Electric | Medical & Industrial Equipment | Predix, Grid Software | Diversified Industrial |
| Siemens AG | Automation, Healthcare Technology | PLM Software, Building Technologies | Industrial Goods |
| IBM | Mainframes, Storage Hardware | Cloud & Cognitive Software, Consulting | Technology and Consulting |
| Accenture | - | IT Services, Cloud Services | Consulting and Outsourcing |
| SAP SE | - | ERP, CRM, HCM Software, Consulting | Enterprise Software |
| Oracle Corporation | Servers, Storage | Database Software, Middleware | Enterprise Software |
| Honeywell International | Control Systems, Sensors | Forge, Cybersecurity Services | Diversified Technology |
| Dell Technologies | Personal Computers, Servers | Cloud Solutions, Security Services | Computer Hardware |
| Xerox Corporation | Printers, Copy Machines | Document Management Software | Document Solutions |
| Thermo Fisher Scientific | Analytical Instruments | Digital Solutions, Services | Life Sciences |
| Johnson Controls | HVAC Equipment | Building Management Software | Building Products |
| Medtronic plc | Medical Devices | Software for Patient Monitoring | Medical Devices |
| Philips Electronics | Medical Systems, Consumer Health | HealthSuite, Clinical Software | Health Technology |
| Raytheon Technologies | Aerospace and Defense Hardware | Intelligence Services, Cybersecurity | Aerospace and Defense |
| Schneider Electric | Energy Management Hardware | EcoStruxure, Software Solutions | Energy Management |
| ABB Ltd. | Robotics, Electrification Products | B&R Automation Software | Robotics and Automation |
| Rockwell Automation | Industrial Automation | FactoryTalk Software Suite | Industrial Automation |
| Emerson Electric Co. | Process Control Systems | PlantWeb, Operational Certainty | Diversified Industrial |
| Eaton Corporation | Power Management Hardware | Energy Automation Solutions | Power Management |
| Roper Technologies | Engineered Products, Analytical Instruments | Software Application Products | Diversified Industrial |
| Trimble Inc. | Positioning Solutions | Software for Construction, Agriculture | SaaS Technology |
| Agilent Technologies | Laboratory Analytical Instruments | Informatics and Services | Life Sciences and Diagnostics |
| Canon Inc. | Imaging and Optical Products | Network Video Solutions, Print Solutions | Imaging and Optical Products |
This table is not exhaustive and serves as an illustration based on general knowledge as of my last update in April 2023. To further refine the table, you would need to review the latest financial disclosures of each company for specifics on their revenue breakdown by hardware and software. Additionally, for a tailored analysis, it may be beneficial to consult with industry experts or conduct detailed market research.