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Unisys
Company
Profile

by Karen M. Spring

Copyright 2019, Faulkner Information
Services. All Rights Reserved.

Docid: 00014046

Publication Date: 1912

Report Type: VENDOR

Preview

Unisys is a global information technology and
consulting firm with operations split into Services and Technology
segments. The Services unit handles outsourcing and infrastructure services.
Technology develops enterprise-class servers and other specialized
hardware and software for data centers. This report explores Unisys’
operations in greater detail.

Report Contents:

• Fast Facts
• Profile
• Strategy
• Product Lines
• Activity

Fast Facts

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Name: Unisys
Headquarters
801 Lakeview Drive,
Suite 100
Blue Bell, PA 19422
Phone: (215) 274-2742
Web: https://www.unisys.com/
Type of Vendor: Systems and Services
Founded: 1986
Service Areas: Global
Stock Symbol: UIS (NYSE)

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Profile

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Unisys is an information technology (IT) company that
offers IT services, software, and other products worldwide.

The company specializes in helping its clients secure their operations, increase
data center efficiency, improve end-user support, and modernize enterprise
applications. In particular, Unisys offers products and services related to data
analytics, application services, cloud and infrastructure services, and
security software. As
of December 31, 2018, Unisys has approximately 22,000 employees worldwide.

The company operates Services
and Technology business segments, as detailed in Table 1.

History & Milestone Events

Although Unisys has its roots in E Remington & Sons
(founded in 1873), its current operations were established following the $4.8 billion
merger of Burroughs Adding Machine and Sperry Gyroscope in 1986. These two
mainframe companies were rebranded as Unisys. Since its days of
operating solely as a technology
company, Unisys has shifted over time to become an IT services firm as well.
Notable moments from its history include:

• 1989 – Establishes the
  Micro A single-chip desktop mainframe.
• 1991 –
  Downsizes from 60,000 to 49,000 employees in a cost-cutting move.
• 1992 – Forms a unit to
  specifically deliver IT services, realigning its mode of operations.
• 1993 – Introduces a
  2200/500 mainframe model that features CMOS technology.
• 1995 – Sees its services and solutions eclipse products in terms of revenue.
• 1996 – Witnesses
  shareholders dismiss the proposed split of Unisys into separate computer
  manufacturing, consulting, and services companies.
• 2001 – Enters noteworthy outsourcing
  agreements with HSBC, GE Capital Bank, BMW Bank, Lloyds TSB, Northwest
  Airlines, Air Canada, and California State University Systems.
• 2003 – Acquires K Consulting,
  Baesch Computer Consulting, and ePresence.
• 2006 – Reaches an agreement for
  NEC to take over the manufacturing of Unisys servers.
• 2007 – Divests its media
  business to Atex.
• 2008 – Taps former Gateway chief
  executive Edward Coleman as its newest CEO.
• 2009 – Announces its new
  strategy focused on security, data center transformation and outsourcing,
  end-user outsourcing and support services, and application modernization. Adds new products and services such as Converged Remote Infrastructure
  Management, Smart On-site, and ClearPath enhancements.
• 2010 – Sells Health Information
  Management to Molina Healthcare and Insurance Services to Tata
  Consultancy Services’ Diligenta. Rolls out the Unisys Hosted Secure
  Private Cloud Solution.
• 2011 – Rolls out new ClearPath
  Libra and Dorado 800 series mainframes for mission-critical workloads and
  data center resource access.
• 2014 – Appoints Board lead
  independent director Paul Weaver as interim chairman and CEO, replacing
  Coleman in December.
• 2015 – Peter Altabef takes the helm as CEO and president. Paul
  Weaver is named chairman.
• 2016 – Named Inder M. Singh the company’s new CFO upon the
  retirement of Janet Haugen. 
• 2018 – Launches CloudForte, a managed services offering to promote
  acceleration to the cloud. 
• 2019 – Mike Thomson is named CFO. Debuts CloudForte for ServiceNow,
  an offering to automate cloud operations using the ServiceNow platform.
  Unisys announced revenue growth for fiscal year 2018 for the first time
  since 2003. 

Strategy

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Unisys’ mission is to market and deliver industry-specific solutions,
horizontal services, and technology products to its key target markets. Specific vertical markets
are the public sector, which includes the US
federal government, financial services, and other commercial markets such as
life sciences and healthcare, retail, and transportation. Offerings include security software and
services, digital transformation and workplace services, industry applications
and services, and software operating environments for high-intensity enterprise
computing. 

Unisys markets these offerings through a
direct sales force, although in certain foreign countries it relies on
distributors. To
compliment its sales force, it also employs a select group of resellers and
partners that market and promote its portfolio.

The company’s solutions are designed to help clients:

• Transform core business processes to compete more effectively within their
  market sectors. 
• Improve user engagement for customers and employees, streamline
  operations, and boost go-to-market efforts. 
• Optimize IT infrastructure to meet digital business requirements. 
• Simplify management of IT infrastructure and service delivery.
• Enhance enterprise security.  

Strengths

Unisys is
regarded as a strong global business for IT consulting, often pulling in key
contracts with the US Department of Defense, the General Services Administration, and other government agencies and
large enterprises. In 2019, Unisys landed a contract with the Department of
Veterans Affairs for the first time. The company attributes its
focus  on cybersecurity over the past few years as a key factor in
winning such contracts. 

Unisys continues to maintain strategic alliances with different
vendors including Amazon Web Services, Dell Technologies, BMC, Google, IBM, Intel, Microsoft, Oracle,
Salesforce, SAP, and VMware. These relationships enable Unisys to
provide consulting services and technology that adds value to partner
offerings. 

Weaknesses

Unisys has admitted that its business is continually affected by
rapid changes in the information services and technology industries, as well as
by aggressive competition from other companies that have far more resources. 

Outlook

Unisys spent the past several years restructuring its business in an effort to recoup money
and return to profitability. Between 2015 and late 2017, Unisys shed about eight percent of
its workforce. However, these measures have helped the company turn a corner. In
2018, Unisys announced revenue growth for the first time in 15 years – to $2.83
billion. CEO Peter Altabef said in an interview, "You don’t stay a
technology company for 145 years without really reinventing yourself along the
way time and again… finding what you’re really good at and making sure that
you are best-in-class and distinguish yourself is, I think, the way any company
needs to operate. That’s what we’ve been doing."¹ After Altabef
took the reins in 2015, he looked at Unisys’ competitors and decided that the
company needed to focus on cybersecurity. That cybersecurity positioning has
enabled Unisys to snap up valuable contracts from the Defense Department and
other federal agencies, bringing lucrative revenue to the company. 

Unisys continues to receive contracts from US federal agencies to perform
services and deliver software offerings. Following are a few of the company’s
2019 awards. Unisys won a contract with the National Oceanic and Atmospheric
Administration in November 2019 and will deliver its CloudForte offering to help
support the agency’s transition to the cloud. That blanket purchase agreement is
worth up to $144 million. In October, the US Defense Information Systems Agency
(DISA) awarded a $214 million contract to optimize, modernize, and consolidate
service desk and field services for the Defense Department’s (DOD) offices both
in the US and abroad. DISA also awarded a contract valued at $152 million to
support the Joint Service Provider program for the secure management and
maintenance of the DOD’s IT infrastructure. Additional key contracts with the
federal government include the US Census Bureau ($102 million), the General
Services Administration ($57 million), and the Department of Veterans Affairs
($24.7 million). 

The vendor is considered a market leader and top competitor in several key
technology areas. Latest wins for the company include: 

• Computable’s Service Provider of the Year Award for CloudForte for
  Microsoft Azure
• Named a global leader in cloud and data center services by Information
  Services Group
• A CIO 100 Award for two consecutive years
• A recipient of the Dell Technologies President’s Circle Award
• Named a leader in Gartner’s 2019 Magic Quadrant for Managed Workplace
  Services, North America

Product
Lines

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Table 2 looks at Unisys’ core
products and services.

Major Competitors

Unisys’ principal
competitors include systems integrators, consulting and other professional
services firms, outsourcing providers, infrastructure providers, computer
hardware manufacturers, and software providers. The
company’s most direct competition comes from Accenture, Capgemini, and IBM. In terms of
security, Check Point Software, FireEye, and Cisco are among Unisys’ main
competition. 

• Accenture: https://www.accenture.com/
• Booz Allen Hamilton: https://www.boozallen.com/
• Capgemini: https://www.capgemini.com/ 
  Check Point Software: https://www.checkpoint.com/ 
  Cisco: https://www.cisco.com/ 
• DXC Technologies: https://www.dxc.technology/ 
• FireEye: https://www.fireeye.com/
• IBM: https://www.ibm.com/
  SAIC: http://www.saic.com/ 

Activity

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Products and Services

Unisys rolled out
CloudForte for ServiceNow. This pay-per-use offering was created
to automate and accelerate secure digital transformation and
cloud-based operations. The release uses ServiceNow enterprise
platform services.

(11/20/2019)

Unisys introduced the
Cloud Architecture Navigator and Cloud Compliance Director. These
automated features, which are now available, are designed to help
optimize operations and enhance security for workloads delivered
through the Unisys CloudForte service for Microsoft Azure and hybrid
cloud-based environments.

(11/06/2019)

Unisys released a
cloud-based version of its Stealth(identity) SaaS
(Software-as-a-Service) product for biometric identity
management. The software brings biometric identity proofing and
authentication capabilities, and leverages Microsoft Azure.

(11/05/2019)

Unisys updated its
Stealth security software to leverage Microsoft’s new Azure
Service Tag Discovery API (application program interface). This
integration is designed to provide added security when accessing
Azure cloud-based services, automatically updating security
configuration rules and providing uninterrupted access to Azure.
The Service Tag Discovery API is now available for public
testing. Further information is available via
the Unisys Web site.

(09/30/2019)

Unisys was
re-contracted by Australia’s Queensland Department of Transport
and Main Roads. This commission will see it provide facial
image-processing technology and services for future smart-card
drivers licenses. Unisys will specifically provide the technology
for the department’s Facial Signature Image Processing system
that is based on Unisys’ Stealth(identity) multi-factor identity
management and authentication product. The contract is listed as
a “multi-year agreement,” with no additional terms listed.

(09/11/2019)

Unisys was awarded a
three-year, AU16.5 million (US$11.5 million) contract to design,
build, and manage a secure, cloud-based infrastructure for
Australia’s Bureau of Meteorology. This deployment also includes
an upgraded WAN (wide area network) to support current services
and provide a “modern operating environment.” The contract
includes options for multiple extension, with a total, maximum
term of no more than nine years.

(07/29/2019)

Unisys updated
Elevate, its omnichannel banking software platform. This
application was created to allow banks to adopt an “open banking”
approach. The release includes elements to better take advantage
of data management and API (application programming interface)
integration.

(04/23/2019)

Unisys launched the Unisys Managed PKI (Public Key Infrastructure). This service centrally manages the processes by which organizations authenticate in-network users and devices.

(03/05/2019)

Unisys rolled out
Stealth(identity), a release that focuses on biometric identity
management. This software features biometric enrollment
processing to support fingerprint, face, voice, and iris
recognition; behavioral biometrics; and added support for
integrating biometric modalities.

(03/05/2019)

Unisys released a
version 4.0 update to its Stealth security software suite. This
application features a “dynamic isolation” technology to hone in
on devices and users at the first sign of compromise. The
release, in particular, addresses threats associated with
cloud-based adoption, mobile environments, the IoT (Internet of
Things), and the “digital landscape.” The update will be
available starting on April 15th.

(03/05/2019)

Unisys has rolled out its CloudForte for Microsoft Azure
offering. This cloud-based software offers managed services to
help both automate and accelerate digital transformation and
cloud operations. The CloudForte application can specifically
deploy and manage cloud-based environments, in addition to
helping expand services.

(02/04/2019)

Alliances and Joint Ventures

Unisys announced that
its CloudForte Cloud Compliance Director and Cloud Architecture
Navigator are now available for the Amazon Web Services (AWS) platform. The
releases offer pay-per-use CSPM (cloud security posture
management) and cloud-based optimization services, and are now
available.

(12/04/2019)

Unisys joined the Cyber Security
Coalition, a partnership of more than 60 academic, public,
and private sector organizations to “fight against cyber crime in
Belgium.” The Cyber Security Coalition works to bolster
cybersecurity resilience by bringing together various parties on
a “trust-based platform” to foster information exchange and
implement joint action. Key focus areas will include:
cybersecurity awareness, enterprise security architecture, cloud
security, governance, risk and compliance and the Cybersecurity
Act for tackling cybersecurity threats and attacks. Other
Coalition focus groups will address privacy, the NIS (Network and
Information Systems) directive, cryptography, and CSIRT-SOC
(Computer Security Incident Response Team and Security
Operations Center) activities.

(07/01/2019)

Unisys forged an
agreement with to allow PayCargo to
integrate its Digistics cargo software solutions within the
PayCargo payment-processing capabilities. This integration is
designed to help enhance cargo processing for airlines, freight
forwarders, and importers.

(06/10/2019)

Dell
Technologies and Unisys reached an agreement
to integrate several of their software suites with one another.
This partnership includes a deal for Unisys’ Stealth security
software suite to be added to Dell EMC‘s
Cyber Recovery software set. This integration should specifically
allow the application to offer “enhanced protection” for
cyber-recovery operations. At the same time, Unisys announced
that its CloudForte managed service will be made available for
Dell hybrid, private, and public cloud-based environments, as
well as “conventional data center resources.” The integration
effort is expected to result in commercially available software
as early as June 2019.

(05/01/2019)

Personnel and Organizational

Unisys named Mike Thomson as permanent CFO. The exec, who joined Unisys in 2015, had filled the role on an interim basis since April.

(09/16/2019)

Unisys Federal named Mark Forman as VP, Digital
Government. Forman previously served as Global Head, Unisys
Public Sector, and is also the former Administrator for President
George W. Bush’s Office of E-Government and IT (now called
Federal CIO). With this role, the exec will work with US federal
government clients to improve mission outcomes through cloud
computing and digital transformation technology. Forman will
report to Federal President Venkatapathi Puvvada.

(08/26/2019)

Unisys CFO Inder
Singh announced that he will resign from the company, effective
April 26th. Singh – who joined the company in 2016 – will be
replaced by Interim CFO, Mike Thomson, and will work with Unisys
officials to assist in “an orderly transition.” For his part,
Thomson joined Unisys in 2015, and, as Controller, is responsible
for US GAAP compliance; SEC and local statutory reporting; global
transaction processing; and the establishment of global
accounting policies, controls, and corresponding governance.

(04/10/2019)

Unisys has elected
Lisa Hook to its Board of Directors, effective February 15, 2019.
Hook most-recently served as President and CEO of Neustar, and
is also a former exec with SunRocket, AOL, Time Warner, and
Viacom. She also serves on the President’s National Security
Telecommunications Advisory Committee (NSTAC).

(01/23/2019)

Unisys elected Matthew Desch to its Board of Directors, effective January 1st. Desch is the CEO and a Director for Iridium Communications.

(12/19/2018)

Financials

Unisys disclosed net
losses of $13.2 million for the 2019 third quarter ended
September 30, 2019. This amount – which equates to about $0.23
loss per share – is down by about 316 percent from 2018 third
quarter profits of $6.1 million, or $0.12 per share. The current
period, it was noted, includes $20.2 million – or $0.35 per share
– in charges related to a “convertible note transaction.”
Revenues were $758 million, which is up by 10 percent from Q318
sales of $688 million. Services revenue increased 8 percent year
to year to $654 million, while Technology revenue grew 25 percent
to $104 million.

(10/29/2019)

Unisys‘ year-on-year
earnings increased more-than five-fold for the 2019 second
quarter. Company profits for this three-month period reached $26
million, or $0.42 per share, compared to a 2018 Q2 net income of
$4 million, or $0.07 per share. Revenues, meanwhile, totaled $754
million, an amount that is up by 13 percent from 18Q2 sales of
$667 million. Services revenue grew 11 percent year-to-year to
$653 million, while Technology revenue increased 23 percent to
$100 million.

(07/30/2019)

Unisys logged a 146
percent Y2Y earnings slide, hitting net losses for the 2019 first
quarter ended March 31, 2019. Company losses totaled $19
million, or $0.38 per share, compared to 2018 first quarter
profits of $41 million, or $0.62 per share. The year-ago amount,
Unisys noted, reflected a nearly $48 million income that was
related to “initial adoption of ASC 606,” the new “revenue
recognition rules” that were implemented for 2018. Revenues,
meanwhile, were $696 million, an amount that is down by 2 percent
when compared to 18Q1 sales of $708 million. The latter revenue
base, it was noted, is “reflective of the additional $53 million
of revenue recorded upon adoption of ASC 606.” By segment,
Services revenue improved 8 percent year to year to $612 million,
while Technology revenue fell 40 percent to $84 million.

(05/06/2019)

Unisys noted a 51
percent year-to-year earnings dropoff for the 2018 fourth quarter
ended December 31, 2018. Company profits were $25 million, or
$0.51 per share, compared to a 2017 Q4 income of $51 million, or
$0.76 per share. Revenues, meanwhile, were $761 million, which is
up by 2 percent from 2017 fourth quarter sales of $745 million.
Of this amount, Services revenue grew 6 percent year to year to
$626 million, while Technology revenue fell by 11 percent to $135
million. At the same time, full-year profits were $76 million, or
$1.30 per share, compared to 2017 losses of $65 million, or $1.30
per share. Sales were $2.8 billion, which is up by 4 percent from
2017 revenues of $2.7 billion. By segment, Services revenue grew
4 percent year-to-year to $2.4 billion, while Technology sales
were up 6 percent to $439 million. Net earnings were $76 million,
or $1.30 per share, compared to 2017 losses of $65 million, or
$1.30 per share.

(02/12/2019)

References

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¹ Michelle Caffrey. "Unisys Execs Play It Safe – as in
Cybersecurity – in Impressive Turnaround." Philadelphia Business Journal.
May 7, 2019. 

About the Author

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Karen M. Spring
is a staff editor for Faulkner Information Services, tracking high-tech
industries, including network security, ERP, CRM, network management, Internet
security, data breaches, hacking, and software tools. She writes regularly on high-tech topics for
publications in the k-12 and higher education industry. Previously, Ms. Spring
was a marketing specialist for two computer distributors, working closely with
such clients as 3Com, IBM, Okidata, Unisys, and Acer.

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