Avanade
Avanade is a global professional services company providing IT consulting and services focused on the Microsoft platform with artificial intelligence, business analytics, cloud, application services, digital transformation, modern workplace, security services, technology and managed services offerings. Headquartered in Seattle, the company has 36,000 professionals in 24 countries. Avanade serves 34% of the Fortune 500 and 46% of the Fortune Global 500.
Avanade operates as a subsidiary of Accenture and was founded as a joint venture with Microsoft.
History
Avanade was formed on April 4, 2000, as a joint venture between Accenture and Microsoft, and today is majority-owned by Accenture. The companies maintain the Accenture-Avanade-Microsoft alliance to combine Accenture's consulting expertise with Microsoft's scalable cloud and mobile technologies. Avanade and Accenture have been recognized as the Microsoft Alliance Partner of the Year 15 times, most recently in 2019 for the 12th year in a row.The name Avanade is a portmanteau between avenue and promenade.
In March 2020, energy company RWE announced a partnership with Avanade to replace part of its existing IT infrastructure and implement a new Microsoft Azure-based infrastructure and Office 365.
Leadership
Mitch Hill, a former senior partner at Andersen Consulting, was the founding CEO until August 31, 2008. Adam Warby has held the position from September 1, 2008 to August 31, 2019. On June 6, 2019, Avanade's board of directors appointed Pamela Maynard to succeed Adam Warby as CEO on September 1, 2019. Pamela Maynard has held many leadership roles at Avanade over her tenure, most recently President of Product and Innovation.Acquisitions
To date, Avanade has acquired a number of companies to expand offerings and market share.| Number | Date | Company | Business | Country | Value | References |
| 1 | DCG | Online business consulting and integration | — | |||
| 2 | G.A. Sullivan | Information technology | — | |||
| 3 | en’tegrat | Microsoft Dynamics specialists | — | |||
| 4 | HOB | Consulting firm | — | |||
| 5 | Quadreon | Microsoft Dynamics specialists | — | |||
| 6 | Ascentium Corporation | Microsoft Dynamics specialists | — | |||
| 7 | ECONNEX AG | Microsoft Dynamics specialists | — | |||
| 8 | Azaleos | Managed messaging, collaboration & unified communications services | — | |||
| 9 | KCS.net | Information technology | — | |||
| 10 | CloudTalent | Strategic cloud advisory | — | |||
| 11 | Infusion | Software engineering and design | — | |||
| 12 | Loud & Clear | Technology and experience design | — | |||
| 13 | Alnamic AG | Microsoft Dynamics 365 and AX specialists | — | |||
| 14 | Altius | Data and artificial intelligence specialists | — | |||
| 15 | Concert | ERP solutions | — |
- In 2005, Avanade acquired Chicago-based en’tegrate, a services firm specializing in Microsoft AX deployments.
- In 2007, Avanade acquired Copenhagen-based HOB Business Solutions, a services firm specializing in Microsoft Dynamics AX solutions.
- In 2008, Avanade acquired Ghent, Belgium-based Quadreon, a services firm specializing in Microsoft Dynamics AX solutions.
- In 2010, Avanade acquired the US portion of the CRM practice from Ascentium, a US-based consulting firm.
- In 2011, Avanade acquired Kiel-based eCONNEX AG, a services firm specializing in Microsoft Dynamics CRM solutions.
- In 2012, Avanade acquired Azaleos, a Seattle-based American corporation specializing in managed messaging, collaboration and unified communications services for Microsoft Exchange, Microsoft SharePoint, Microsoft Active Directory and Microsoft Lync and Blackberry Enterprise Server.
- In 2015, Avanade acquired KCS.net, one of the largest Microsoft Dynamics ERP partners in Germany, Switzerland and Austria, a leading Microsoft Dynamics CRM partner and has a fast growing Microsoft SharePoint business.
- In 2015, Avanade acquired CloudTalent, a strategic infrastructure and cloud advisory business headquartered in the United Kingdom
- In 2017, Avanade acquired Infusion Development, a consulting services firm focused on digital transformation, application modernization, and cloud-scale solutions.
- In 2018, Avanade acquired Loud & Clear, an independent enterprise technology and experience design agency headquartered in Melbourne
- In 2019, Avanade acquired Alnamic AG, a specialist in Microsoft Dynamics 365 and AX solutions for German industries
- In 2020, Avanade acquired Altius, a company specializing in AI and data based in the UK
- In 2020, Avanade acquired Concert, a provider of Microsoft Dynamics 365 and AX solutions based in Milan, Italy. Concert’s team of more than 100 experts brings deep industry expertise in creating ERP solutions, particularly for the retail and manufacturing sectors.
Operations
India, China and the Philippines supply Avanade with offshore consultants housed in parent company Accenture's delivery centers. Overall, these offshore workers comprise over 40% of Avanade's total workforce. Avanade relies heavily on offshore workers in India, China and other developing countries to help their customers reduce costs.
Finances
Avanade began filing financial reports with the Securities and Exchange Commission in 2006, a requirement for publicly traded companies. Alternatively, filings must be made when the number of security holders exceeded 500, which at the time, Avanade had over 1,100. As of July 1, 2008, Avanade is no longer required to file financial reports with the Securities and Exchange Commission as it has unregistered all securities.Avanade's business model is heavily dependent on Accenture. Nearly 65% Avanade's revenue comes from Accenture, primarily by serving as a subcontractor to Accenture. In fiscal year 2007, Avanade grew revenues by 23% to $593 million and increased its global number of employees by 22%. Revenues were led by the company's operations in North America, followed by Europe, then Asia Pacific. A significant portion of Avanade's total revenue is obtained by subcontracting for Accenture and Microsoft. In fiscal year 2007, that amounted to more than 70% of total revenue for the company.