A more human IT world - ANNUAL REVIEW - Logicalis
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A more human IT world LOGICALIS ANNUAL REVIEW 2020
Introduction Highlights
The world may never be the same again. REVENUE GROSS PROFIT (26%) ▶▶Steady revenues in FY20
A new workplace
COVID-19 has fundamentally changed the way
we live, work and communicate. At Logicalis, See page 02 $1.7bn $441m ▶▶Gross margin improvement
driven by business mix and
we are not looking back on the pandemic. 2019 $1.7BN 2019 $410M one-off Brazil tax credit
Instead we are looking forward at the impact ▶▶Significant improvement to
it will have on businesses and future ways of EBIT and operating margins
working. As society re-emerges, forming and Planning for better ANNUITY SERVICES (24%) EBIT (4 .2%)
adjusting to the ‘next normal’ will be a top
priority. Technology will play an integral role,
resilience
See page 04
$415m $72.3m
2019 $387M 2019 $65.9M
ultimately acting as a facilitator to a world
that is more authentic, more resilient and
more human than ever before. Living a greater
PEOPLE COUNTRIES
purpose
See page 06
6,500+ 26
Contents
01 Highlights
02 A new workplace
04 Planning for better resilience
06 Living a greater purpose
08 Logicalis at a glance
10 Chairman’s statement
12 Chief Executive Officer’s review
18 Our business model
20 Customer relationships
22 Corporate social responsibility
26 International presence
28 Board of Directors
32 Financial statements
34 Principal trading subsidiaries
Logicalis Annual Review 2020 01
A more human IT world
A new
Case study:
Collaboration tools enable IT
support for remote learning
More than 20 schools in California needed
workplace
immediate access for IT technology staff,
normally deployed at the district offices,
to work from home to support remote
learning services.
Logicalis US launched Rapid Deployment
Services (RDS) designed to support customers’
needs to adopt remote working practices,
maintain security and infrastructure readiness,
and provide supplemental IT staff support.
All services were fully deployed within three
working days and have been so successful
that the district has already purchased an
expansion for more remote workers.
COVID-19 has proved that working-from-home on mass is possible and
can be done efficiently, effectively and collaboratively, but not without the
help of technology. The days of long commutes may be gone as we form “Logicalis’ Rapid Deployment
a new hybrid workplace of part-time office and remote workers. Preparing program allowed us to keep
and planning for the knock-on effects will be essential in providing a critical staff 100% connected in a
better digital experience for customers, partners and employees. moment’s notice when our
organization sent workers home
due to COVID-19. With their help
we had no downtime across our IT
Hybrid and remote working Optimising the human Connecting in a more human, Enriching the
support and business functions
will become the norm side of remote work authentic way digital experience supporting our staff and students.”
Remote working has been a necessity for The pandemic has made the separation This way of working has also shown us a As a result of us all working remotely,
a high proportion of businesses during the between work- and home-life practically more intimate insight to our colleagues’ businesses, schools and public services
pandemic. According to Gartner1 at least impossible. Supporting employees home lives, with video calls frequently have had to shift their efforts to delivering Matt Penner
48% of employees will work remotely at through all this requires executive interrupted with families and pets. Many a better digital experience for consumers Director of Information and
least some of the time after the pandemic. leadership to be understanding, of us have made closer connections to our and users, whether via websites, virtual Instructional Technology, CCTO
Many organisations have been surprised transparent, highly communicative and peers during this period than before the events or webinars. Val Verde Unified School District
at the speed of their own workforce support employees through this crisis. crisis, and organisations should look to
Digital technologies such as mobile
transformation, moving from a largely leverage this as we move into recovery.
HR leaders, in particular, have been at devices, apps, machine learning and
office-based workforce to be effective
the centre of their organisations’ rapid Workers may likely return to office automation have also caused a shift in
working remotely from home, while
response to this crisis, and have been environments with an even greater customer expectations, resulting in a new
accessing company systems and
playing a central role in keeping the desire for meaningful connections. kind of modern buyer. The experience that
remotely engaging and transacting
workforce engaged, productive and Office spaces are therefore more likely customers had offline or face-to-face is
with their customers.
resilient. Now HR leaders need to turn their to accentuate the collaborative aspects now what they expect from their online
Now is the time to revisit remedial systems attention toward recovery – reinforcing of modern work, whilst at the same time digital experience and organisations need
implemented hastily as the hybrid commitment to wellbeing and purpose, needing to be adaptable to satisfy the to invest in these new technologies or risk
workplace seems here to stay. while preparing the workforce with the inevitable demands for flexibility from losing market share and their most
skills and capabilities for their return. the workplace. talented employees to their peers.
02 03
A more human IT world
Planning
Case study:
Ensuring digital assurance
through AIOps
Logicalis recently launched its new global
for better
Digital Service Platform (DSP), designed to
increase business uptime and digital
assurance to its managed services customers.
The innovative platform delivers new services
powered by Artificial Intelligence Operations
More focus on (AIOps) with machine learning, to predict
resilience
and prevent potential customer failures and,
cost optimisation where appropriate, through self-healing
As restrictions ease, a period of cost automation, remediate faults before they
cause business disruption and downtime.
optimisation will be essential for
organisations to ensure that the
emergency measures put in place remain
robust and adaptable for the future.
Technologies that provide productivity George Humphrey
gains and savings or offer OPEX options to Vice President and
manage cash flows such as cloud solutions Managing Director, TSIA
will be top of mind for businesses. Digital
technology plays a key role in building
that resilience and enabling businesses
“Based on data insights, we believe
to compete differently post-pandemic with
an emphasis on adaptability and agility. that AIOps, Robotic Process
Automation and advanced
analytics are critical capabilities
As companies look forward, creating greater operational Upskilling and Business More focus on building, for managed service providers
resilience will be imperative. training employees continuity forecasting and predicting (MSPs) to be investing in and
As many businesses reset their strategies The global pandemic highlighted many Data and analytics have proved deploying. MSPs that leverage
Organisations may find themselves reassessing and and transform to digital business models flaws in organisations’ business continuity indispensable during the pandemic
these capabilities see a substantial
reprioritising their business operations and technological to improve resilience, CIOs are faced with plans. Few organisations had planned and help to build resilience and business
a scarcity of digital skills and expertise. for an extended period of disruption, growth. Mindsets and behaviours have improvement in service level
needs, deeming the systems, processes and data insight There is a clear need in many rapidly interrupted supply and delivery or such changed with an increased desire for
agreement (SLA) commitments,
they had in place pre-pandemic as no longer sufficient or expanding economies to acquire the tight restrictions on workforce mobility. insights on current happenings and
necessary digital and STEM skills and yet potential crisis scenarios based on client satisfaction and reduction
relevant. Upskilling and training employees will also be Business leaders now need to take a
as a recent United Nations panel report predictive analytics. of risk in technical operations.”
key in addressing any digital skills gaps and building shows, only half of the population in
critical look at the lessons learned from
the COVID-19 response. As well as Business priorities for analytics have
a more resilient workforce. developing countries has access to the
planning better for inevitable future been focused on employee welfare;
internet. With the push to bring online
lockdowns, organisations should also informing strategic and financial
technology to more of the world’s
consider the opportunity presented to decisions; managing supply-chain
population, an even greater need for
reshape their product and services safety, risks and costs; and, of course,
digital skills will arise. See how Logicalis is
portfolio considering what to retire, scale engaging customers in new and
committed to supporting the education of
back, continue as normal, or reinvent. increasingly digital ways.
disadvantaged people in its community
on page 22.
04 Logicalis Annual Review 2020 Logicalis Annual Review 2020 05
A more human IT world
Living a
Case study:
Unlocking innovation in our
Architects of ChangeTM to build
a better world
greater
Logicalis has launched an internal
competition giving employees the
opportunity to develop new skills and
create innovative business solutions.
The challenge is broad and bold and
purpose
requires teams to create new solutions
that contribute to solving social and
Embracing inclusivity environmental problems and, at the
same time, support our customers’
and diversity business outcomes.
The lessons from previous crises tell us there
is a very real risk that inclusion and diversity
(I&D) may now recede as a strategic priority
for organisations as companies focus on
their most pressing basic needs. According Bob Bailkoski
Logicalis Group CEO
to McKinsey, companies pulling back on
I&D now may be placing themselves at a
disadvantage: not only facing a backlash
The opportunity for business to make an indelible mark from customers and talent but also, down
with empathy and purpose is greater than it has ever been. the line, failing to better position themselves “An innovative mindset is
for growth and renewal. Some of the qualities
Decisions made during the crisis will likewise shape a fundamental for Logicalis.
that characterise diverse and inclusive
corporation’s identity and tell a story that will leave traces companies – notably innovation and resilience The world is changing rapidly,
long after COVID-19 has been quelled. As Architects – will be much in demand as companies and technology has a key role
recover from the crisis. Read more about
of ChangeTM, we recognise our role in driving positive to play. This competition
Logicalis’ approach to I&D on page 22.
change for our customers, employees and society. Reviewing your challenges our people to develop
CSR strategy solutions that address social or
Companies need Consistently exceeding The pandemic has highlighted, more environmental issues that make
a clear purpose expectations just got harder
than ever, a real global issue touching a real difference and give them
all our lives. For companies with global
2020 has seen organisations shift their The pandemic has required leaders to
a clearer sense of purpose.”
footprints in changing landscapes, this
focus to include more social causes, make decisions under considerable is an all-hands issue. The pandemic
whether that’s a supermarket changing its pressure. According to the 2020 Edelman reinforces the most pressing CSR focus:
purpose during the pandemic, to ‘feeding Trust Barometer, investors, customers and that we operate in a globally connected
the nation,’ or a fashion house turning its employees will show greater loyalty and world –economically and ecologically –
production to face masks and gowns for recognition to those organisations who with shared challenges.
the health service. have clear policies in place to manage the
Corporates need to focus not only on
physical, mental and social wellbeing of
Demonstrating a greater focus on company impacts to communities, but
their people.
stakeholder primacy to include employees, also on the opportunities that companies
supply chain relationships, the environment To see how Logicalis managed this period have to solve broader problems – in
and local communities is critical in building with its employees, read more in the CEO developing pragmatic solutions to address
trust and customer loyalty and having a review on page 12. global challenges. Read the adjacent case
clear purpose has become more important study to see how Logicalis has challenged
in establishing brand position. its own employees to address this.
06 Logicalis Annual Review 2020 Logicalis Annual Review 2020 07
Logicalis at a glance
OUR REVENUE % BY SEGMENT
As Architects of Change , TM
2020
UK
we accelerate our customers’ Ireland
Channel Islands
Germany
progress on a truly global scale Product
Maintenance and managed services
59%
24%
US Portugal Spain
China
Professional services 17% Taiwan
Hong Kong
Mexico Puerto Rico
OUR SERVICES FOR DIGITAL ENABLEMENT 2019
Colombia
Digital ready infrastructure Internet of Things (IoT) Malaysia
▶▶ Enterprise networks and data centres ▶▶ IoT solutions (sensors, devices, Singapore Indonesia
Ecuador
▶▶ Software defined networking and data connectivity, security)
centre infrastructures ▶▶ Real-time analysis and managed services Product 62% Brazil
Perú
Maintenance and managed services 22%
To learn more Bolivia
Cloud Analytics/Artificial Intelligence (AI) about our
▶▶ Cloud advisory and solution design services ▶▶ Data analytics tools and consultancy Professional services 16% Paraguay
global reach Australia
▶▶ Private, public and hybrid cloud solutions ▶▶ Enterprise data management Chile
see page 26
Uruguay South Africa
Security Services
Argentina
▶▶ Security advisory services ▶▶ Lifecycle services
▶▶ Managed security services ▶▶ Maintenance and managed services
PERCENTAGE OF TOTAL REVENUE
Latin America North America EMEA Asia Pacific
35% 25% 24% 15%
Latin America hosts Logicalis’ largest operation contributing over a third of its revenues. Logicalis has 19 offices in the US, together with Logicalis has a presence in 26 offices across 7 countries within EMEA. Logicalis has almost 1,000 people in
It is one of the most sizeable independent service providers in Latin America, operating in three cloud data centres and three managed The region hosts an international managed service centre based in 7 countries across Asia Pacific with
11 countries with over 3,200 employees. Logicalis Latin America is recognised in the 2020 service centres. Logicalis US was named in the South Africa, and several state-of-the-art Security Operation Centres managed service centres, service
edition of ‘The best companies to work for in Latin America’ by Great Place to Work®. Tech Elite 250 category of the CRN 2020 serving local and international markets. desks and security operation centres
Managed Service Provider. that serve the region. The Australian
operation was the first to achieve
Microsoft Azure Expert Managed
Service Provider (MSP) status in 2020,
a certification which is now held by
all Logicalis operations globally.
Presence in the Channel Presence in Australia,
3,250 Presence in Argentina, Bolivia,
Brazil, Chile, Colombia, Ecuador,
810 Presence in the US.
1,635 Islands, Germany, Ireland, 960 China, Hong Kong,
PEOPLE PEOPLE PEOPLE Portugal, South Africa, Spain PEOPLE Indonesia, Malaysia,
Mexico, Paraguay, Perú, Puerto
39 19 26 20
and the UK. Singapore and Taiwan.
Rico and Uruguay.
OFFICES OFFICES OFFICES OFFICES
08 Logicalis Annual Review 2020 Logicalis Annual Review 2020 09
Chairman’s statement
substantial services element as the contract
Introducing
Managing through uncertain times has progressed in FY20. In addition, a one-off
tax credit in Brazil increased gross profit Bob Bailkoski,
by $13.6 million following a court ruling in
favour of Logicalis regarding overpaid indirect
our new CEO
taxes. Overall Gross Profit was up 8% to
$441.1 million (FY19 $410.1 million).
Operating expenses remained well controlled
and were broadly in line with prior year at
$317.3 million ($316.8 million), this is despite
Logicalis reported a strong result in FY20
absorption of additional operating costs in
with revenues holding steady despite
the year from the new acquisitions.
currency headwinds especially in Latin
America. The good performance was aided Logicalis’ EBITDA was $123.8 million (FY19
by stronger gross margin and a continued $93.3 million), with a corresponding EBITDA
trend towards higher Services mix at 41%, margin of 7.3% (FY19 5.4%). The growth in
which was underpinned by Services EBITDA represents a significant rise of 33%,
revenue growth of 6%. but it includes reclassifications arising from
IFRS 16 adoption for FY20. Excluding the
Revenue from operations increased in North Bob joined Logicalis Group in
effects of IFRS 16 adoption, EBITDA result in
America, Asia Pacific and Africa in absolute “Our cash position remains strong November 2015 as Chief Financial
FY20 would have been $103.9 million with
terms, but was impacted by multiple currency Officer and was promoted to Chief
corresponding EBITDA margin of 6.1%. and we are in good shape to Operating Officer in March 2018
weaknesses within Latin America and a
downturn in our European revenues Since the onset of the COVID-19 pandemic, support our customers through before taking the role of Chief
Logicalis has been modelling and planning Executive Officer for the Logicalis
attributable to the rightsizing of our UK these uncertain times on their
business. FY20 reported revenues fell by for multiple scenarios to guide the business Group in March 2020. During that
2% as a result, but increased by 4% on a as it moves forward. The initial focus has been
journey to recovery.” time as COO, he demonstrated his
constant currency basis, remaining at to ensure all its employees remain safe while leadership strengths by introducing
$1.7 billion for the Group (FY19 $1.7 billion). seeking to reduce other fixed operating and a more structured strategic planning
support costs across the business. So far, in process to the business, being the
In September 2019, Logicalis acquired Cilnet,
FY21, Logicalis has seen a modest reduction Executive sponsor for Logicalis’
a Cisco Systems integrator, extending its
in revenues, partly due to the weaker Brazilian International Sales business, and
presence in the Iberian region into Portugal.
economy and currency, but its cash position creating Logicalis’ first global
During the same month, it also acquired
remains strong and the business is in good customer satisfaction survey.
Orange Networks, a German-based Microsoft
shape to support its customers through these
services business focused on Microsoft cloud Bob brings over twenty years of
uncertain times on their journey to recovery.
and managed services. international experience to the Group
Jens Montanana, and has lived and worked in Australia,
Logicalis reported a stronger gross margin in
Jens Montanana, Chairman Switzerland and the US.
FY20 at 25.9% (FY19 23.6%). This increase was
Chairman
driven in part by a large multi-year Latin
American contract that transitioned from
product delivery in FY19 into a more Read our Chief
Executive’s review
on page 12
10 Logicalis Annual Review 2020 Logicalis Annual Review 2020 11
Chief Executive Officer’s review
able to continue to operate in a safe and The market
secure manner and, at the same time, align As the Nobel prize winning physicist Niels
Bob Bailkoski,
our discretionary cost base to protect Bohr once said, “Prediction is very difficult,
Logicalis’ Group CEO
profitability and cash. especially about the future”. But 2020 has
shown us that the post-coronavirus world
The work of Logicalis teams in supporting
will never be the same.
our customers worldwide during this time has
been absolutely critical. I’m particularly proud We believe there will be some fundamental
of the way that we’ve been able to support working practices that will change
hospitals, schools, and local government by permanently as a result of the pandemic.
delivering and implementing much needed Here are some of the changes that we’ve
Bob Bailkoski, Logicalis’ “As Architects of ChangeTM,
an innovative mindset is
technology equipment. We worked together
in true partnership with our customers,
been exploring as we move to a post-
pandemic scenario.
supporting them with rapid deployment
CEO, has a unique perspective fundamental and we’ve brought
to market innovative new
responses to their IT requirements, offering
flexible finance terms and advising on new
1. Hybrid workplace
The worldwide pivot towards remote working
has demonstrated that teams can be just as
on the way in which services around cloud, software consumption models.
productive working from home as they were
and security technologies that As Architects of ChangeTM, an innovative
working from a fixed office. Read more about
mindset is fundamental and we’ve brought
technology is playing a role support our customers’ digital
transformation plans.”
to market innovative new services around
cloud, software and security technologies
this on page 2.
At Logicalis we’ve seen an improvement to
in helping organisations
that support our customers’ digital employee satisfaction levels during this
transformation plans. remote working period. As businesses move
into a recovery phase, the office will likely
Our vendor partners have also been
around the world step up incredibly supportive during this period
and demonstrated the strength of our
become more of a hybrid collaboration
workplace complemented with homeworking
and more agile IT processes.
to the challenges they are
mutual long-term commitment.
At Logicalis we work with businesses to
select, implement and manage market
faced with leading collaboration tools, enabling them
to get the best out of a hybrid workplace
without sacrificing engagement
and productivity.
The need for enterprises to become more For CEOs around the world, digital business
digitally enabled has never been more strategies created before March 2020 now
critical. The coronavirus pandemic has seem out of date. This unprecedented event
created significant disruption for many has forced us to reprioritise our goals and cut
businesses across all sectors and as a costs by changing the way that we work and
consequence many have rapidly invested in revisit our short- to medium-term IT needs.
Remote working has been a
employee communication and collaboration
Coming into the role of CEO just as the
solutions, mobile devices and services, necessity for a high proportion
COVID-19 outbreak was spreading across the
network capacity and information security
globe, I have of course had to reprioritise my of businesses during
tools. Companies are realigning their IT
own plans for the business. An immediate
strategies to mirror how IT is consumed the pandemic. According
concern was to ensure the safety of my 6,500
and revisiting their business continuity
colleagues across the Logicalis Group and we to Gartner at least 48% of
plans to be more resilient in the future.
responded quickly to the severity of the threat
from the pandemic by enabling all employees
employees will work remotely
to work remotely and stay safe. By providing at least some of the time after
the right tools and processes, we have been
the pandemic.
12 Logicalis Annual Review 2020 Logicalis Annual Review 2020 13
Chief Executive Officer’s review continued
FY21
strategic priorities
“We help our clients to engage a few weeks. This solution also allows 4. Business continuity ▶▶ Ensure that Logicalis emerges from
customers to take advantage of Logicalis’ Whether we are dealing with the current the COVID-19 pandemic in a profitable
their employees through secure cloud management services which are pandemic, or the next shock to the global position with sufficient liquidity
collaboration, connect better with designed to ensure efficient operation market, we believe that hyper volatility will
▶▶ Continued focus on operating cost
of their hybrid environment.
their customers, optimise their IT increasingly become the norm. Optimising
optimisation activities in the legacy
an organisation’s resilience to possible future
operations and innovate their 3. Security is king lockdowns and creating digital twins to pair
areas of the business
business model with all the skills Cybersecurity risks have expanded with the virtual and physical world could be ▶▶ Enhance digital services platform
the increase in remote working and the essential tools to avoid business disruption. for global service delivery and
and capabilities across Logicalis.” associated increase in untrusted devices and According to IDC, business continuity plans customer engagement
networks accessing critical data. The global need to be reviewed and rewritten to become
pandemic has accelerated the move away ▶▶ Continue to focus on growing annuity
more dynamic in nature moving forward as
from perimeter-based security, with the services revenue stream
they are constantly tested.3
rapid migration to home workers and cloud ▶▶ Ongoing innovation of services value
Consulting with businesses to understand their
adoption. Unfortunately, this shift has created propositions around cloud, software
continuity needs is an important part of what
a situation where many organisations will not and security technologies
we do at Logicalis. Once we have a greater
have the internal know-how to provide proper
understanding of our customers’ needs, we help ▶▶ Improvements in employee
2. Cloud-based services security measures. This is particularly
Our new brand noticeable in the cloud where there are
them make the right choices on improving their engagement measured by regular
Cloud providers have seen a major surge in
business model resilience. Read more about this surveys of the workforce on new
demand as companies accelerate the rollout misconceptions around the division of
on page 4. global feedback platform
of cloud-based collaboration tools, increase security responsibility between the
their business resilience and adopt a more customer and the cloud provider.
In February 2020, we announced a 5. Hyper automation
agile infrastructure that allows them to scale The requirement to have a partner like A global lockdown on the scale that we’ve
significant evolution to our brand
up or down in line with demand. Many Logicalis, which has the scale to be able to experienced has demonstrated the
positioning. This is part of Logicalis’
businesses have also protected cash flows proactively monitor and react quickly to any vulnerabilities in supply chains and workflow.
ongoing transformation to be the digital
by taking advantage of the opex cost model threats, has therefore never been greater. Companies with a robust infrastructure that
transformation services partner of choice.
that cloud services offer. rely on automation have fared better than
Architects of Change TM
was developed Logicalis has built a robust set of solutions
According to IDC2, hybrid cloud options will those without. Analysts are predicting an
through a collaborative process, to including technology architecture, advisory,
continue to play a key role for business, increase in automation technologies
understand and re-define Logicalis’ risk and compliance services, and a full suite
as organisations focus on regulatory deployed at scale and increased use of
purpose, proposition, behaviours of managed security solutions. We don’t see
compliance needs. workflow automation and robotics.4
and personality. security as just a set of solutions – we embed
Logicalis’ Production Ready Cloud Platform security into everything we do to ensure our At Logicalis, we’ve embedded automation in
As Architects of ChangeTM, we need to
offers a robust methodology driven by customers receive the maximum value our own Digital Service Platform to increase
continually be innovative and focused on
automation that enables customers to move and protection. business uptime and digital assurance for our
creating solutions that resonate in these
workloads into the public cloud within just managed services customers. Find out more
testing times. We do this by helping our
about this in our case study on page 4.
clients to engage their employees
through secure collaboration, connect
better with their customers, optimise
their IT operations and innovate their
business model with all the skills and
capabilities across Logicalis.
14 Logicalis Annual Review 2020 Logicalis Annual Review 2020 15
Chief Executive Officer’s review continued
6. Data analytics Given these challenges ahead we are also for innovation gives confidence to our coordination, our local efforts will be collaboration to ensure that employees
COVID-19 is forcing rapid change in consumer pivoting ourselves to remodel parts of our strategic partners such as Cisco and Microsoft amplified on a global scale. remain connected and adopting a more
and business buying behaviour meaning business to better suit our needs. We believe that we are investing in staying at the empathetic, people-first approach.
We recognise the need for a more timely
business models must adapt. Analytics we will come out of the pandemic more closely forefront of technology.
understanding of ‘the mood’ of the workforce We’re putting more attention into the
based on historic trend data need to evolve. connected and stronger, to better support our
Education is another aspect that we feel given the lack of physical interaction, and the wellbeing of our colleagues, recognising that
Investing in data management and analytics customers to take them into recovery. I’d like
passionate about at Logicalis. Of course, we introduction of our continuous listening mental health is as important as physical
services is critical to ensure businesses to share some of these initiatives:
need our people to have the latest technical platform gives the regional business leaders health. It’s important in these uncertain
accelerate value extraction from data stores,
certifications and qualifications that will access to real-time feedback and analytics times that we find interesting ways to
enhanced with applied machine learning Making a difference
enable them to be successful in the from their teams. communicate and connect with colleagues,
and AI. The combined power of more Our people are creative problem-solvers
workplace. But beyond this, we see education beyond video calls. Our management teams
sophisticated analytics across a expanding and are driven to innovate, particularly in We are also committed to striving for greater
as a powerful weapon to confront many of are also cognisant of the danger of burnout
variety of data sets remains a mega trend. a collaborative team, seeking out Logicalis inclusion and diversity in the workplace by
society’s key problems, including inequality, from a remote working environment and are
subject-matter experts from around the securing equal opportunity and treatment
Additionally, given the near-term uncertainty poverty and social exclusion. setting clear boundaries for employees to
world. These characteristics enable us to to all talented people that are part of the
that we now face, smart organisations will ensure ‘work time’ does not take precedence
find new ideas that can truly deliver value With that in mind, my executive team Logicalis community.
continue to foster a mindset of data over ‘personal time’.
to our customers and to society at large. and I have agreed to take a more globally
utilisation, to gain new insights, based on Logicalis is conducting a global programme
aligned approach to our corporate social One strong outcome from this crisis is that
reliable, structured, secure and timely data Logicalis colleagues are all encouraged to join of internal training designed to educate all
responsibility projects, focusing our efforts we have become more intimate with our
services. See how Logicalis has supported our Innovation Challenge competition to employees on the unconscious biases that
on the unifying cause of education. This will colleagues, customers and partners. I think
Grupo Piñero, with its deep knowledge and create new solutions that contribute to solving may exist in our everyday decision-making.
leverage the skills that we have across the that’s a good thing and I’m sure it will
experience, to refocus its data analytics social and environmental problems and, at the
Logicalis Group today and, with proper continue. Getting to see their families and
strategy on page 21. same time, support our customers’ business Lessons from the pandemic
pets over video conferencing, getting an
outcomes. Find out more on page 7. Our drive We’ve seen that digital transformation can
insight to their homes and family life, has
happen much quicker than anyone thought.
provided a deeper human connection. As a
The days of long-term roadmaps for
technology services company, our ability to
transformation have gone, as proven by the
adapt and use technology to support human
reaction to the lockdowns. Why did it happen
advancement has never been more
so efficiently in the lockdown?
important than it is today.
In our experience of large customer
transformations, whenever you have an Bob Bailkoski,
aligned and committed executive team, Logicalis Group CEO
“Our ability to adapt and use
change is much more likely to be successful.
technology to support human This, combined with clear and transparent
advancement has never been communication throughout the organisation,
makes the biggest difference.
more important than it
At Logicalis, we will be embracing the flexible
is today.”
work model and the advantages that this
brings including a more diverse workforce
and fewer geographical restrictions to hiring.
We’ll be increasing our efforts on team
16 Logicalis Annual Review 2020 Logicalis Annual Review 2020 17Our business model
Creating and maintaining value for
both customers and stakeholders
We define our customers long- Key resources Key partnerships Our activities How Logicalis creates value Key outcomes
term strategy by aligning business
and relationships for stakeholders
objectives and IT requirements,
Financial Key partners As ‘Architects of ChangeTM’ Logicalis Shareholders
transforming and scaling IT ▶▶ Gross profit 26% Extensive service portfolio
▶▶ Cisco adds value by providing complex IT ▶▶ Increased operating profitability
solutions to elevate the value and ▶▶ EBITDA 7.3% ▶▶ Microsoft solutions and services to deliver ▶▶ Increased services and annuity revenue
benefits that they deliver to their ▶▶ HPE
On-premise, cloud and
business transformation for its ▶▶ Reduction in net debt
▶▶ IBM clients and society.
stakeholders and clients. Human Financial institutions and debt
▶▶ VMware hybrid solutions funders key relationships
▶▶ 6,500 employees ▶▶ Dell EMC Logicalis provides a single source ▶▶ US$18 million interest paid to
▶▶ Employees’ time, skills
to navigate the intricacies of debt providers
and knowledge Key relationships Security expertise global business.
▶▶ Customers Employees
What makes ▶▶ Employees Logicalis is continually expanding its ▶▶ Recognition of employees through
Social and relationship ▶▶ Vendors performance rewards
Logicalis different ▶▶ Vendor relationships
Network infrastructure partnership ecosystem with vendors
▶▶ Communities and core partners and building ▶▶ Investment in business and technical
▶▶ Customer relationships expertise long-term relationships. expertise for employees
Empowering its people to ▶▶ Stakeholder relationships
Customers
be innovative
▶▶ A dedicated, committed partnership
Key revenue segments Workspace communications and superior customer experience
Dedicated business focused on Intellectual
specific needs of local and ▶▶ Technical expertise Categories Vendors (suppliers)
▶▶ Sector experience
global customers ▶▶ Direct product sales Collaboration capability ▶▶ Recognition by vendors through partner
▶▶ Logicalis IP ▶▶ Annuity services awards and joint investment
Consistent service delivery and ▶▶ Strategic partnerships ▶▶ Professional services ▶▶ Committed and strategic long-term
quality across geographies
Geographic
IoT, data analytics and profitable vendor relationships
Corporate social responsibility
Focused on longer-term,
Natural ▶▶ Latin America AI expertise beneficiaries
▶▶ Carbon
more strategic relationships ▶▶ US What impacts Logicalis’ ▶▶ Improved quality of life for
footprint management ▶▶ EMEA
with customers
▶▶ Energy management ▶▶ Asia Pacific Acquisition activities ability to create value local communities
▶▶ More inclusive and diverse workplace
▶▶ Recycling initiatives
Driving customers’ success by ▶▶ Fluctuating exchange rates
Key revenue drivers Environment
bringing together their vision with ▶▶ Global macroeconomic uncertainty
▶▶ Energy savings and reduced
Logicalis’ industry knowledge and
▶▶ Managed services carbon footprint
deep technological expertise to
▶▶ Digital transformation projects ▶▶ Environmental certifications
design and deliver its customers’
▶▶ Multinational deals
digital transformation
Global presence, local execution
18 Logicalis Annual Review 2020 Logicalis Annual Review 2020 19Customer relationships
The more human the approach,
the longer lasting the relationship
Case study:
Tourism company refocuses its
data analytics strategy
Grupo Piñero, a Spanish tourism group,
had been using predictive models to forecast
hotel demand and provide their agents with
more personal customer insights to improve
the customer experience. Their data analytics
solution based on IBM Watson, implemented
and managed by Logicalis, uses machine
learning to collect and consolidate all the
analytical demand of the group and its
Case study: Case study: divisions, allowing business areas to make
Educational impact through Health service scales up remote decisions in an agile and simple way.
business activities operations in two weeks The pandemic has totally disrupted the data
Logicalis helped its customer National Thomas Duryea Logicalis (TDL) supported patterns that the model was in the process
Cheng Kung University (NCKU) in Tainan, Peninsula Health in Victoria, Australia to “TDL’s ability to propose and of learning. Grupo Piñero have now stopped
Taiwan, to build the first AI-enabled, facilitate their 1,000 back office staff to work deliver a viable solution for secure developing the predictive models and,
cloud-based virtual learning platform, remotely, in a secure fashion in just two weeks instead, have boosted analytics projects
remote working in the speed we
that would provide AI courses for primary “As our long-term partner, as the COVID-19 pandemic began to emerge. around the information they have about
and secondary school students. needed to act was crucial in their customers, to improve their offering
Logicalis demonstrated its state- Peninsula Health had to move from an
The university needed a professional team on-premises infrastructure, which wouldn’t Peninsula Health being able to from the knowledge of them.
of-the-art skills and showed great
that could not only establish a platform support the number of staff remotely accessing successfully and efficiently
for high-performance computing in AI team spirit. We’re excited to see systems via the VPN, to a cloud environment, in
change its fundamental IT
applications, but one that also possessed the university and students reap a rapid timeframe. A key consideration to this
requisite knowledge and expertise in the project was the security of patient data with business model. The speedy “Logicalis has been key in this
the benefits of being able to
basics and higher theories of AI and back office staff working remotely. solution delivered ensured that project, for their experience and
machine learning. consistently study AI courses
TDL set up a proof of concept within a week patient care was not compromised deep knowledge of the latest
Logicalis designed and delivered an through the remote classroom.” using their production-ready cloud platform
in our hospitals, and our staff were technologies in the market, as
integrated high-performance computing capabilities. The full deployment took place a
infrastructure with a cloud virtual desktop Professor Chiang Jung-Hsien, week later for all staff members. TDL was able to supported in a significant shift in well as for the high quality of
Director of Computer Center, NCKU
infrastructure (VDI) and developed a do this at speed and scale by leaning on the their working environment to their technical team. Their
tailor-made AI course providing NCKU with cloud maturity model that has served many
move to working from home.” capabilities have given us the
the practical know-how to inspire students organisations in Australia. On top of this, TDL also
to pursue advanced degrees and research implemented Azure multi-factor authentication
Warren Kulpa confidence we need on the way
opportunities in the AI field. to ensure patient data was appropriately secured.
Director, IT Infrastructure, to our digital transformation
Peninsula Health
process, right from the start.”
Mateo Ramón
Corporate Global CIO, Grupo Piñero
20 Logicalis Annual Review 2020 Logicalis Annual Review 2020 21Corporate social responsibility
Driving positive
Our people Health and safety
change for our
customers, Being a great place to work
Logicalis recognises that its people are critical
Rewarding performance
The majority of employees at Logicalis have
Continuous listening to employees
To enable the Company to really understand
Logicalis ensures the health and safety of its
employees through occupational compliance
to the ongoing success of the business and, performance objectives which are linked to what its employees think about working practices, employee wellness and ensuring that
employees strives to attract the best talent, develop and
reward its people for great performance and
the strategy of the local business. Talent and
succession management reviews of the
for Logicalis, a continuous listening ‘Pulse’
platform was successfully trialled in FY20 and
employees lead a healthy and balanced lifestyle.
Following the declaration of COVID-19 as a
engage effectively with them. Logicalis aims to leadership team in each business are held is now being launched across the whole pandemic by the World Health Organization
and society be an employer of choice and was recognised annually, to focus on the retention of top Group in FY21. This will replace the previous (WHO) on 11 March 2020, Logicalis’ immediate
response was to keep employees safe in
Case study:
Your Wellbeing Matters
in FY20 as being a Great Place to Work in four leadership talent and effective biennial employee engagement surveys and
countries within the technology industry and succession management. give business leaders access to real time accordance with government guidelines in all Logicalis’ HR leaders worldwide
is targeting several more countries to take part feedback and analytics from their teams. geographies of operation which typically involved supported their employees during
in similar HR awards in 2020. maximising working from home, social distancing the pandemic with ‘Your Wellbeing
Living its values and all advised measures to limit the spread of Matters’, a series of blogs covering
Developing talent To further embed Logicalis’ Group-wide mental wellness, physical wellness,
COVID-19. Travel and face-to-face meetings were
emotional wellness and financial
In Logicalis, the focus on advanced values, in FY20 Logicalis launched a new quickly reduced and then eliminated completely
wellness. Another important aspect was
technologies requires a high level of technical We are committed to striving competency framework across the Group in accordance with prevailing regulations.
professional wellness. Whilst Logicalis
expertise, and management works closely to support various people practices such as
for greater inclusion and employees are always encouraged to
with its vendors to ensure that employees recruitment, talent development discussions Commitment to health and safety develop themselves professionally, for
are trained appropriately and have the diversity in the workplace by and a 360o framework. Employees can also Logicalis recognises its obligation to reduce some people the COVID-19 pandemic
necessary accreditations. securing equal opportunity nominate each other for value awards for the risk of injury in the work environment and provided unique opportunities to do so
living the values. Both the values and the to provide a clean and safe place to work. with reduced workloads, eliminated
In the interests of its long-term sustainability and treatment to all talented Logicalis undertakes to comply with health travel/commutes or other developments.
competency framework help the Group
and in order to develop and retain its top
people that are part of the develop a common identity across all of and safety regulations as set out in the Online training courses were made
leadership talent, Logicalis has established
jurisdictions in which Logicalis operates
a series of international development Logicalis community. its international operations. available across three broad categories
around the world. – technical skills, leadership skills
programmes. The Leadership Academy
Fair and transparent policies and business and people skills.
develops its senior leaders to be ready for Logicalis is conducting a global
Logicalis stands against any type of Policies
some of the most challenging future programme of internal training
discrimination, racism and inequality. We Each Logicalis operation has its own health
executive roles in the business. The new designed to educate all employees on
believe that all employees should be treated and safety policy which is consistent with best
Technical Academy develops the best senior the unconscious biases that may exist
equally, fairly and respectfully. We are also practice in the applicable jurisdiction, and
technical talent to become more rounded in our everyday decision-making.
committed to striving for greater inclusion regularly undertakes programmes and
business professionals and increase
and diversity in the workplace by securing procedures to mitigate health and safety risks,
international collaboration across Logicalis.
equal opportunity and treatment for all such as risk assessments and safety audits.
“A critical success factor in
In order to develop its future leaders internally, talented people that are part of the Logicalis achieving our Logicalis
Training
Logicalis run a high-potential development community. Logicalis maintains consistent objectives is to continually
programme to fast track the development of and transparent diversity policies across all its Logicalis also ensures that the appropriate
some of its employees who show signs of markets and has very active diversity steering health and safety training is provided for its evolve our in-house expertise...
having the capability and ambition to assume committees in its two largest operations in employees for the role that they perform, As Architects of ChangeTM, we
senior leadership roles in the future; in FY20 Brazil and the US. which includes, where appropriate, the
training of first aiders and fire marshals.
need to stay informed and keep
there were three High Potential programmes
run across Europe, LATAM and the US, with learning – our knowledge and
All employees within Logicalis annually
55 high potentials benefitting from the complete an online Code of Conduct training expertise are one of the things
investment. Over $2.5 million was spent across course which covers the responsibilities of that set us apart!”
the Group on development programmes and Logicalis as an employer, and all Logicalis
training accreditations in FY20. employees with regard to health and safety Justin Kearney
in the workplace, and the way we conduct Logicalis Group VP Human Resources
ourselves in business.
22 Logicalis Annual Review 2020 Logicalis Annual Review 2020 23Corporate social responsibility continued
Environment Community
As a responsible international provider of IT Logicalis’ operating companies are Asia Pacific Latin America Logicalis Coasin in Chile help young
solutions, Logicalis seeks to measure and committed to improving the quality of life for Twenty-eight Logicalis Hong Kong staff In Brazil, Logicalis supports several community people at social risk through its Protagonist
minimise the way in which its commercial the local communities that they operate in. members participated in the Hong Kong education schemes. Logicalis partners with programme to re-enter higher education and
activities may impact the environment. This year saw a significant increase in Red Cross ‘1 Blood Donation Saves 3 Lives’ BandTec Digital School with its Future give an introduction to the world of work.
Logicalis is also committed to providing employee participation in activities that make programme in 2019. Logicalis Singapore Generation Programme – offering an It also receives third-year students from
practical advice and support to its customers a real difference with over US$250,000 spent partner with non-profit charitable organisation education in coding and to be a part of the university for a week to gain work experience
and vendor partners to help them along the on CSR activities, with Logicalis supporting a Club Rainbow, organising lots of fun activities Logicalis Internship Programme, to give within IT together with an assigned tutor.
path to ever cleaner and greener IT solutions. range of community and environmental and prizes to celebrate Children’s Day with graduation opportunities for students on a
initiatives in 18 countries. In 2020, the Group local children who suffer from major chronic lower income. Logicalis also support ‘House North America
Logicalis recognises that a responsible attitude
Executive Board held two workshops to agree and potentially life-threatening illnesses. The of Campinas’ which is an institution whose During FY20, Logicalis US donated in excess
to green IT can lead to significant reductions
on a new Group-wide strategic CSR theme team also donated food in FY20 to ‘Food from mission is to provide women with a safe space of US$130,000 to 96 charities, principally
in energy consumption and carbon emissions.
which is to support the education of the Heart’, a charity offering dependable for learning, growth and networking. supporting healthcare, education, children’s
As well as reducing greenhouse gases and
disadvantaged people in our communities. support for the needy in the community. health and disease support. In addition,
operational costs, the technologies it In Argentina, Logicalis buys booklets from
Logicalis US encourages all employees to
promotes, such as remote working and video PSI in Indonesia donated computers to local an organisation which gives work to
Europe donate their time in their local community by
and teleconferencing, enable flexible working charities. Logicalis Taiwan held a fundraising unemployed people and half of what the
Logicalis UK took part in various charitable allowing eight hours of paid time off annually.
environments, greater productivity and event to donate money to MacKay Memorial business buys are donated to local schools.
initiatives including raising money for young
improved business continuity, as well as Hospital Taitung branch, to offer healthcare In Puerto Rico, Logicalis donated 31 survival
people living in local communities in poverty
minimising car or air transportation and services to remote residents. Logicalis kits for the La Hormiga community in Dorado,
or in disadvantaged situations, a cake
reducing its carbon footprint. China also donated to the Shanghai who were severely affected by the devastation
bake-off for Macmillan Cancer Support, and a
Charity Foundation. caused by Hurricanes Irma and Maria in
Logicalis’ local operations support initiatives team charity 25km walk for the Crisis charity.
September of 2017.
for reducing power and water usage and Seven Thomas Duryea Logicalis (TDL)
Logicalis Germany supports six social Case study:
monitoring waste reduction in its offices. Australia employees participated in ‘Around In Paraguay, Logicalis collected toys for
initiatives at its German offices which its
These range from paper and plastic recycling
employees selected – from socially
the Bay’ – a 210km cycling event that raises children in hospitals in partnership with Future Generation Programme
to water filtration and office lighting
disadvantaged children, to development aid to
funds for The Smith Family, who help the Noches Solidarias Foundation. Logicalis from BandTec Digital School,
efficiency systems.
Africa and animal welfare facilities. In addition
disadvantaged children in ensuring they continues to support Fundación Dequeni, Brazil
receive an education. TDL Australia also took an organisation that helps the education
to donating money to each of the six facilities, Logicalis partners with BandTec Digital
part in the Fight Cancer Foundation’s ‘Footy of children who come from low-
Logicalis employees invest their own time. School with its Future Generation
Colours Day’, a day event where employees income backgrounds.
Programme – offering an education in
All ten Cilnet female employees in Portugal ran were encouraged to wear their teams’
Logicalis Perú donated clothes, household coding and to be a part of the Logicalis
for a local breast cancer charity and in Logicalis colours, raising donations towards assisting
goods and cleaning products to Casa Hogar Internship Programme, to give
Spain employees volunteered to clean beaches children with their education, who are
Talita Kum, a shelter for girls rescued from graduation opportunities for students
and raise money for a local hospital. Logicalis receiving treatment for cancer.
labour, sexual exploitation or who on a lower income.
Channel Islands’ employees send Christmas
have been abandoned.
shoe boxes for children in Africa.
24 Logicalis Annual Review 2020 Logicalis Annual Review 2020 25International presence HQ: Germany
Global IT support framework
HQ: Ohio, US A global life science business issued a
A single source to navigate
request for information to find a global
Vertiv – global infrastructure “Logicalis has been really
partner who could create a partnership
rollout responsive. They’ve been to deliver on its global IT strategy.
the intricacies of global business
Vertiv, a global manufacturer, needed to The initial focus for the client was to
very good about working
replace an aging infrastructure in order create a model to consolidate and
to enhance its global presence and with us all over the world manage its global IT assets onto a
capabilities. It also wanted to rollout the single support framework with service Cloud-based secure
and providing very
new infrastructure as one large project to delivery and a commercial model to infrastructure
leverage best pricing and complete the competent people with support future requirements. In
Logicalis is providing a 3-year
refresh more quickly and consistently. addition, the client wanted its partner
good results.” comprehensive software-defined wide
to build a global model to support the
Logicalis understands the challenges of doing Logicalis brought together a team to area networking managed services
client’s IT strategy across its operations.
business around the world. With a global upgrade Vertiv’s infrastructure, delivering Andrew Doud solution to a multinational
footprint that spans 26 countries and a to 35 countries and 180 sites across the Senior Director of Digital Logicalis was selected as the telecommunication company with
workforce of 6,500, we are complemented by globe. Because of Logicalis’ global global partner as we were able to more than 40,000 people globally.
Platform Services, Vertiv
our delivery partners to bring our clients global capabilities with Cisco, we were able to demonstrate our global capabilities,
Logicalis is responsible for all
leverage Vertiv’s collective spend for the how our vision and values were
coverage to over 100 countries. Logicalis provides provisioning, implementation and
best discount from Cisco and deliver aligned to those of the client and how
a single source for multi-country or global deals, on-site support to 53 sites globally
against Vertiv’s aggressive timelines our partnership would deliver value.
acting as our customers’ advisor to maximise across Latin America, Asia, Europe
and project demands. Logicalis has now aligned a global
commercial models and programmes, and to and the United States, enabling all
team which works daily with the client
employees to connect to the network
streamline deployment to all their locations. team to deliver on these outcomes.
from anywhere, and delivering greater
▶▶ Our dedicated international sales hubs network speed and efficiency. The
co-ordinate engagement with our clients entire technical scope was designed
from pre-sales, solution design, commercial by Logicalis specialists in Brazil, with
models, order processing and logistics full support from its experts in other
countries, to build a unique solution
across the Logicalis operations
for the client, delivered on Logicalis’
▶▶ Dedicated teams in each location
digital service platform.
understand specific country requirements
and cultural nuances such as financial HQ: Illinois, US
regulations and taxation, local trading
conditions and industry legislation
Mondelēz International – “Logicalis’ unique approach,
▶▶ We provide multiple transactional models, global services, local delivery technical expertise, global
global financing solutions and Master Mondelēz International, a global snack
manufacturer, needed to consolidate its
reach, and local presence, to
Service Agreements delivering consistent
Terms and Conditions and service levels number of IT suppliers to reduce costs and deliver seamless cutting-edge
simplify its operations. A global IT network
across all the Logicalis entities
infrastructure and maintenance
solutions, is fundamental to
▶▶ Our services portfolio is built on a best-
practice framework backed by ITIL
framework from Logicalis enabled support us on offering a
Mondelēz International to improve
processes and supported on a digital service operational efficiency of its procurement
comprehensive value
platform that defines and operates our and logistics around the globe, allowing proposition to our customers
services in a consistent, standardised way local operations to order locally and with
▶▶ Our managed service desks across Europe, in-country invoicing, coordinated
worldwide.”
the US and Latin America, Asia and Africa through a single point of contact.
support end users with 24x7 proactive
Customer senior director
monitoring and management, single point
of contact and instant access to highly
skilled technicians and resources
Our international clients tell us they find us easy
to deal with, that we respond quickly to solve
their challenges, and we bring value in leveraging
our international structure to provide a global
single source of engagement.
26 Logicalis Annual Review 2020 Logicalis Annual Review 2020 27You can also read
