SoftwareOne has become the latest global IT solutions partner to announce plans to target margin gains through “AI efficiencies”.
The 12,000-employee software and cloud provider this morning unveiled bold ambitions to boost its EBITDA margins to 28% by 2030.
That compares to the 20.9% adjusted EBITDA margin it recorded last year and 23% figure it is aiming for this year.
The Microsoft ally is also gunning for “high-single-digit” revenue CAGR over the period.
The new financial targets were unveiled as the Switzerland-based outfit reported that its integration of Nordic rival Crayon “is in its final stages and delivering ahead of expectations”.
AI “headwind”
Last month, the world’s largest VAR, CDW, revealed it is targeting annual cost savings of between $100m and $200m via its new internal “AI-powered modernisation initiative”, Geared for Growth.
It comprises AI-driven enhancements across how CDW sells and operates, including coworker AI fluency, deeper data integration, and platform readiness, and productivity gains from tools such as agentic RFP capabilities.
SoftwareOne said its margin rise will be driven by AI efficiencies, as well as “a scalable business model and operating leverage”.
Despite investor jitters over how the rise of agentic AI might dent the business models of the software vendors it carries, SoftwareOne claimed the two-lettered buzzphrase will act as a “headwind” when it comes to its own sales.
“AI acts as a structural accelerator across all four business motions, increasing governance requirements, driving licence upgrades, accelerating cloud consumption and creating new services demand as customers become AI-ready,” it stated.
Raphael Erb, Co-CEO of SoftwareOne, stated: “Every technology wave, from on-premise to cloud, from SaaS proliferation to multi-cloud, and now AI, has expanded demand for what we do. Today, we are presenting a clear and credible path to strong, profitable growth, powered by a business model that is delivering measurable outcomes for customers across the full technology lifecycle.”
“SoftwareOne’s business model is built on a core value proposition that has been reinforced through every major technology shift, and the combination with Crayon has created a truly global platform, uniquely positioned to help enterprises navigate what is becoming the most complex decade in the history of enterprise software”, added Melissa Mulholland, Co-CEO of SoftwareOne.
