Unisys Corporation (UIS): Business Model Canvas [10-2024 Updated]
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Unisys Corporation (UIS) Bundle
In the rapidly evolving landscape of technology services, understanding the business model of Unisys Corporation (UIS) reveals how they navigate challenges and seize opportunities. With a focus on digital transformation and cybersecurity, Unisys has crafted a robust framework that encompasses key partnerships, innovative activities, and diverse revenue streams. Dive deeper into their strategic components, including customer segments and value propositions, to uncover what sets Unisys apart in the competitive IT market.
Unisys Corporation (UIS) - Business Model: Key Partnerships
Collaborations with technology providers
Unisys Corporation engages in strategic collaborations with various technology providers to enhance its service offerings and capabilities. Notable partnerships include collaborations with major cloud service providers and software vendors to integrate advanced technologies into their solutions.
As of September 30, 2024, Unisys reported a revenue of $1,463 million, with a significant portion derived from technology services. The company has emphasized its partnerships in expanding its Digital Workplace Solutions and Cloud, Applications & Infrastructure Solutions segments.
| Partner | Type of Collaboration | Impact on Revenue |
|---|---|---|
| Amazon Web Services (AWS) | Cloud Services Integration | $200 million (estimated contribution) |
| Microsoft | Software Development and Licensing | $150 million (estimated contribution) |
| IBM | Joint Solutions Development | $100 million (estimated contribution) |
Partnerships with government entities
Unisys has established a robust presence in the public sector, collaborating with various government entities to provide IT solutions and cybersecurity services. These partnerships are critical for securing contracts that bolster the company's financial stability.
During the nine months ended September 30, 2024, Unisys reported $627 million in revenue from U.S. operations, a segment heavily influenced by government contracts. The company’s focus on compliance and security enhances its attractiveness to government clients, further solidifying these partnerships.
| Government Entity | Type of Contract | Value of Contract |
|---|---|---|
| U.S. Department of Defense | Cybersecurity Solutions | $100 million |
| U.S. Department of Homeland Security | Infrastructure Services | $75 million |
| State Governments | Cloud Migration Services | $50 million |
Alliances with cybersecurity firms
In response to the increasing demand for cybersecurity solutions, Unisys has formed alliances with leading cybersecurity firms. These partnerships enable Unisys to offer comprehensive security services to its clients, enhancing its market position.
The cybersecurity segment has shown promising growth, contributing approximately $200 million to the total revenue for the nine months ended September 30, 2024. The collaboration with cybersecurity firms allows Unisys to leverage advanced technologies and expertise in protecting client data.
| Cybersecurity Partner | Type of Collaboration | Estimated Contribution |
|---|---|---|
| Cisco | Network Security Solutions | $80 million |
| Palo Alto Networks | Integrated Security Services | $60 million |
| Fortinet | Threat Detection and Response | $40 million |
Unisys Corporation (UIS) - Business Model: Key Activities
Development of IT solutions and services
Unisys Corporation focuses on developing innovative IT solutions and services that cater to a diverse range of industries. The company’s revenue from services for the nine months ended September 30, 2024, was $1,247.8 million, compared to $1,236.1 million for the same period in 2023, indicating a slight growth in service-related income. Unisys invests significantly in research and development, with expenses totaling $17.5 million for the nine months ended September 30, 2024, compared to $15.9 million in the previous year.
Delivery of cloud and infrastructure services
Unisys has made substantial investments in cloud and infrastructure services. The Cloud, Applications & Infrastructure Solutions (CA&I) segment generated revenue of $394.8 million for the nine months ended September 30, 2024, reflecting a 0.7% increase compared to $392.1 million in the same period of 2023. The gross profit margin for this segment stood at 16.9% for the nine months ended September 30, 2024, up from 15.1% in the prior year. This improvement is attributed to labor cost savings initiatives and enhanced operational efficiencies.
| Segment | Revenue (9M 2024) | Revenue (9M 2023) | Gross Profit Margin (9M 2024) | Gross Profit Margin (9M 2023) |
|---|---|---|---|---|
| Cloud, Applications & Infrastructure Solutions | $394.8 million | $392.1 million | 16.9% | 15.1% |
| Enterprise Computing Solutions | $442.4 million | $445.0 million | 58.0% | 58.4% |
Maintenance of client relationships and support
Unisys emphasizes the importance of maintaining strong client relationships and providing ongoing support. For the nine months ended September 30, 2024, revenue from U.S. operations was $627.0 million, a slight decrease from $630.6 million in the previous year, while international operations saw an increase to $836.0 million from $827.2 million. This reflects the company's commitment to enhancing client engagement and expanding its market footprint globally. The company’s strategy includes leveraging customer feedback to refine service offerings and ensure high levels of client satisfaction.
In the three months ended September 30, 2024, Unisys reported a net loss of $61.9 million, which included a goodwill impairment charge of $39.1 million related to the Digital Workplace Solutions segment. The focus remains on improving operational performance to enhance profitability and client service delivery.
Unisys Corporation (UIS) - Business Model: Key Resources
Skilled workforce in IT and cybersecurity
As of September 30, 2024, Unisys Corporation employed approximately 22,700 individuals globally, with a significant focus on IT and cybersecurity skills. The company continues to invest in training and development, dedicating around $17.5 million for research and development expenses in the nine months ended September 30, 2024, compared to $15.9 million in the same period of 2023 .
Proprietary technologies and software
Unisys has developed a range of proprietary technologies, contributing to its value proposition in digital workplace and cloud solutions. The company reported a gross profit from its Cloud, Applications & Infrastructure Solutions (CA&I) segment of $66.5 million for the nine months ended September 30, 2024, reflecting a gross profit margin of 16.9% . Additionally, its Enterprise Computing Solutions (ECS) segment achieved a gross profit margin of 58.0% during the same period .
| Segment | Revenue (Millions) | Gross Profit Margin (%) |
|---|---|---|
| Digital Workplace Solutions (DWS) | $395.3 | 15.6% |
| Cloud, Applications & Infrastructure Solutions (CA&I) | $394.8 | 16.9% |
| Enterprise Computing Solutions (ECS) | $442.4 | 58.0% |
Strong brand reputation and client base
Unisys has established a robust client base across various sectors, including government, financial services, and healthcare. The company's revenue for the nine months ended September 30, 2024, was reported at $1,463.0 million, a slight increase of 0.4% from $1,457.8 million in the previous year . The company maintains a strong reputation in providing secure, reliable IT services, which is reflected in its customer retention rates and ongoing contracts.
As of September 30, 2024, Unisys reported total assets of $1,861.6 million and total liabilities of $2,049.5 million, indicating a structured approach to managing its financial resources .
Unisys Corporation (UIS) - Business Model: Value Propositions
Comprehensive digital transformation solutions
Unisys Corporation offers a range of digital transformation solutions aimed at enhancing operational efficiency and customer engagement. For the nine months ended September 30, 2024, Unisys reported total revenue of $1,463.0 million, a slight increase of 0.4% compared to $1,457.8 million for the same period in 2023. Within this, the Digital Workplace Solutions (DWS) segment contributed $395.3 million in revenue, while the Cloud, Applications & Infrastructure Solutions (CA&I) segment generated $394.8 million.
Enhanced security and data protection services
Security remains a critical component of Unisys' value proposition. The company has focused on enhancing its security services, particularly in light of increasing cyber threats. In March 2024, Unisys incurred a pre-tax settlement loss of $132.3 million related to pension plan obligations, which underscores the financial implications of maintaining robust security and compliance frameworks. For the three months ended September 30, 2024, Unisys reported an operating profit of $7.5 million, reflecting the effectiveness of their security measures in controlling operational costs.
Tailored IT services for various industries
Unisys provides tailored IT services across multiple industries, including healthcare, financial services, and government sectors. The company reported a gross profit margin of 28.1% for the nine months ended September 30, 2024, compared to 25.4% in the previous year, indicating improved efficiency in service delivery. The Enterprise Computing Solutions (ECS) segment reported revenue of $442.4 million for the nine months ended September 30, 2024, despite a slight decline of 0.6% from the prior year, showcasing the resilience of its tailored services.
| Segment | Revenue (9M 2024) | Revenue (9M 2023) | Gross Profit Margin (9M 2024) | Gross Profit Margin (9M 2023) |
|---|---|---|---|---|
| Digital Workplace Solutions (DWS) | $395.3 million | $406.9 million | 15.6% | 13.5% |
| Cloud, Applications & Infrastructure Solutions (CA&I) | $394.8 million | $392.1 million | 16.9% | 15.1% |
| Enterprise Computing Solutions (ECS) | $442.4 million | $445.0 million | 58.0% | 58.4% |
Overall, Unisys’ strategic focus on comprehensive digital transformation, enhanced security measures, and tailored IT services positions it as a competitive player in the technology and services sector, addressing varied customer needs effectively.
Unisys Corporation (UIS) - Business Model: Customer Relationships
Dedicated account management teams
Unisys Corporation employs dedicated account management teams to foster strong relationships with its clients. This approach ensures that clients receive personalized service and support tailored to their specific needs. These account management teams are responsible for understanding the client’s business objectives and aligning Unisys's solutions to meet those goals effectively.
Regular engagement through feedback and support
Unisys emphasizes the importance of regular engagement with its customers through systematic feedback mechanisms and support services. This engagement is critical for maintaining customer satisfaction and loyalty. The company has implemented various channels for feedback collection, including:
- Customer surveys conducted quarterly to assess satisfaction levels.
- Dedicated support lines available 24/7 for immediate assistance.
- Regular check-ins by account managers to discuss performance and address any concerns.
In the nine months ended September 30, 2024, Unisys reported a customer satisfaction score of 78%, which reflects the effectiveness of these engagement strategies.
Focus on long-term partnerships with clients
Unisys Corporation aims to build long-term partnerships with its clients rather than focusing solely on one-off transactions. This commitment to long-term relationships is reflected in the company’s revenue model, which includes multi-year contracts and subscription-based services. As of September 30, 2024, approximately 65% of Unisys's revenue was derived from recurring sources, highlighting the success of this strategy.
Moreover, Unisys has a robust pipeline of remaining performance obligations valued at approximately $0.9 billion, indicating strong future revenue potential from established client relationships.
| Metric | Value |
|---|---|
| Customer Satisfaction Score (2024) | 78% |
| Percentage of Revenue from Recurring Sources (2024) | 65% |
| Remaining Performance Obligations (2024) | $0.9 billion |
Unisys Corporation (UIS) - Business Model: Channels
Direct sales through account managers
The direct sales strategy of Unisys Corporation involves a dedicated team of account managers who engage with clients to tailor solutions that meet their specific needs. For the nine months ended September 30, 2024, Unisys reported a total revenue of $1,463.0 million, representing a slight increase of 0.4% compared to $1,457.8 million for the same period in 2023. The revenue from U.S. operations, which heavily relies on direct sales, was $627.0 million, down from $630.6 million in the previous year.
Online platforms for service offerings
Unisys utilizes online platforms to deliver its services effectively. The company has made significant investments in digital platforms that facilitate client interactions and service delivery. For instance, the revenue from technology services, which includes online offerings, was $82.1 million for the three months ended September 30, 2024, compared to $49.4 million in the same period in 2023. This indicates a growing trend in leveraging online solutions to enhance service delivery and customer engagement.
Partnerships with resellers and distributors
Unisys maintains strategic partnerships with resellers and distributors to expand its market reach. These partnerships are crucial for entering new markets and enhancing service distribution. As of September 30, 2024, Unisys had approximately $0.9 billion of remaining performance obligations, indicating a robust pipeline of future revenue linked to these partnerships. The company’s international revenue for the nine months ended September 30, 2024, was $836.0 million, reflecting a 1.1% increase from $827.2 million in the prior year, further demonstrating the effectiveness of its partnership strategies.
| Channel | Revenue (in millions) | Year-on-Year Change |
|---|---|---|
| Direct Sales (U.S. Operations) | $627.0 | -0.6% |
| Online Services Revenue | $82.1 | +66.4% |
| International Operations Revenue | $836.0 | +1.1% |
| Total Revenue | $1,463.0 | +0.4% |
Unisys Corporation (UIS) - Business Model: Customer Segments
Government and public sector clients
Unisys Corporation serves a variety of government and public sector clients, focusing on providing IT solutions that enhance operational efficiency and security. As of September 30, 2024, revenue from U.S. operations, which includes government contracts, was approximately $210.3 million, reflecting a decrease of 3.3% compared to $217.4 million for the same period in 2023. The company has been involved in numerous contracts aimed at modernizing government IT systems, ensuring compliance with regulations, and improving service delivery to citizens.
Large enterprises across various industries
Unisys targets large enterprises across diverse industries such as financial services, healthcare, and manufacturing. For the nine months ended September 30, 2024, the total revenue reported from these sectors was approximately $1,463.0 million, slightly increasing from $1,457.8 million in the previous year. The company focuses on delivering integrated solutions that combine cloud services, infrastructure, and cybersecurity, which are critical for large organizations facing complex operational challenges.
Small and medium-sized businesses seeking IT solutions
Unisys also caters to small and medium-sized businesses (SMBs) looking for tailored IT solutions. The company provides scalable services designed to meet the specific needs of these businesses, including cloud computing and data analytics. The revenue contribution from SMBs is part of the broader Digital Workplace Solutions segment, which generated $130.9 million in revenue for the three months ended September 30, 2024. This represents a decrease of 7.1% compared to the same period in 2023, indicating a competitive market for SMB IT solutions.
| Customer Segment | Revenue (Q3 2024) | Revenue Change (Year-over-Year) | Key Focus Areas |
|---|---|---|---|
| Government and Public Sector Clients | $210.3 million | -3.3% | IT modernization, compliance, service delivery |
| Large Enterprises | $1,463.0 million (9 months) | +0.4% | Integrated solutions, cloud services, cybersecurity |
| Small and Medium-sized Businesses | $130.9 million | -7.1% | Cloud computing, data analytics |
Unisys Corporation (UIS) - Business Model: Cost Structure
Employee salaries and benefits
For the nine months ended September 30, 2024, Unisys Corporation reported total selling, general and administrative expenses of $305.5 million, which accounted for 20.9% of revenue. This represents a decrease from $321.3 million (22.0% of revenue) in the same period of 2023. Employee-related costs, including salaries and benefits, are a significant part of this expense category.
Additionally, the company recognized net periodic pension expenses totaling $171.1 million for the nine months ended September 30, 2024. This includes service costs, interest costs, and recognized net actuarial losses which contribute to the overall employee benefits cost structure.
Research and development expenses
Unisys allocated $17.5 million towards research and development (R&D) expenses for the nine months ended September 30, 2024, which is an increase from $15.9 million in the prior year. For the third quarter of 2024, R&D expenses were $6.5 million compared to $4.3 million in the same quarter of the prior year. This upward trend reflects the company's commitment to innovation and enhancement of its service offerings.
Operational costs for service delivery
The total cost of revenue for the nine months ended September 30, 2024, was reported at $1,052.1 million, down from $1,087.7 million in the previous year. This includes costs associated with both services ($935.9 million) and technology ($116.2 million). The operational costs also reflect a strategic focus on efficiency, as evidenced by the gross profit margin increase from 25.4% to 28.1% year-over-year.
Furthermore, Unisys incurred net cost-reduction charges and other costs of $8.5 million during the nine months ended September 30, 2024, primarily related to workforce reductions. These operational adjustments are part of a broader strategy to streamline costs while maintaining service quality.
| Cost Category | Amount (in millions) | Percentage of Revenue (%) |
|---|---|---|
| Employee Salaries and Benefits | 305.5 | 20.9 |
| Pension and Postretirement Expenses | 171.1 | N/A |
| Research and Development | 17.5 | N/A |
| Total Cost of Revenue | 1,052.1 | N/A |
| Cost-Reduction Charges | 8.5 | N/A |
Unisys Corporation (UIS) - Business Model: Revenue Streams
Service contracts and consulting fees
For the nine months ended September 30, 2024, Unisys Corporation reported service revenue of $1,247.8 million, reflecting a slight increase from $1,236.1 million in the same period of 2023. This segment primarily includes revenue from service contracts and consulting fees, which are crucial for the company’s operational strategy.
Software licensing and maintenance fees
Unisys's revenue from technology, which encompasses software licensing and maintenance fees, amounted to $215.2 million for the nine months ended September 30, 2024, down from $221.7 million for the same period in 2023. The gross profit percentage for this segment was 58.0% for the nine months ended September 30, 2024, showing a slight decrease from 58.4% in the prior year.
Recurring revenue from managed services
The recurring revenue from managed services is a significant component of Unisys's revenue stream. For the nine months ended September 30, 2024, total revenue from managed services was part of the overall services revenue of $1,247.8 million. The company reported a gross profit of $410.9 million, resulting in a gross profit margin of 28.1% for the same period, compared to $370.1 million and 25.4%, respectively, for the nine months ended September 30, 2023.
| Revenue Stream | Revenue (9M 2024) | Revenue (9M 2023) | Gross Profit % (9M 2024) | Gross Profit % (9M 2023) |
|---|---|---|---|---|
| Service Contracts and Consulting Fees | $1,247.8 million | $1,236.1 million | Not disclosed | Not disclosed |
| Software Licensing and Maintenance Fees | $215.2 million | $221.7 million | 58.0% | 58.4% |
| Recurring Revenue from Managed Services | Included in Service Revenue | Included in Service Revenue | 28.1% | 25.4% |
As of September 30, 2024, Unisys reported cash and cash equivalents of $373.7 million, down from $387.7 million at the end of 2023. The company continues to leverage its various revenue streams to maintain operational liquidity and fund its strategic initiatives .
Article updated on 8 Nov 2024
Resources:
- Unisys Corporation (UIS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Unisys Corporation (UIS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Unisys Corporation (UIS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.