Hello Redbill1952, My understanding is TNE is consulting company vs. ALC is solution product based company, they are in different business model.
TNE get income by selling it's labor time to help its client build whatever, if client is moving from traditional IT solution to CLOUD based, it means major work (design, develop, test and deployment etc) so if a lot of its clients moving CLOUD certainly boost its income. By my memory TNE also had inhouse supporting IT solution to help its consultants, but these applications doesn't directly generate income, it boost the consultants work efficiency etc. If these apps move to CLOUD, it has some cost but not too much and shouldn't affect TNE overall revenue.
In contrast, a solution product based company mainly get its revenue by selling the software license, major new contract means a lump sum in traditional IT IT product based model, or a version upgrade is also similar. Once transferring to CLOUD based, means self funding migration the products, new hardware, new design, new develop, testing, deployment and system admin etc while charging model change to be per seat per annual, usually a lot less than purchasing the whole thing. That's why sp will surfer while moving to CLOUD. It will restart once the migration completed.
Again, its only my view, may be immature.
Cheers,
ALC Price at posting:
5.1¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)