2025 is all about AI for Node4. The cloud managed services and business apps provider has invested heavily in its research and development function to drive the take-up of the technology across multiple platforms.
AI is now embedded in a host of its products and solutions as standard, most notably Microsoft Dynamics 365 Business Central. But it still has a long way to go before the technology is more widely adopted across the industry, according to Mark Skelton, managing director of Node4.
“Right now, the market is genuinely struggling with real world use cases for AI,” said Skelton. “That’s why we’ve taken the vast experience we have gained from working in sectors such as food and beverage, and are using it to build AI agents to help improve their business processes and workflows.”
Despite the clear benefits that it brings, Skelton views AI as a double-edged sword. Much like the move from on-premise to the cloud, he said that the technology is still very much at an early evolutionary stage as the current buzzword, with customers trying to work out how it can best be applied to their businesses.
“AI is both a challenge and an opportunity,” said Skelton. “Many customers are coming to us and saying they are under pressure from their chairman or board to implement AI in their businesses, but they don’t know where to start.
“Added to that, many companies don’t have the right technology or set-up in place to use AI. They know that it could potentially transform their business, but there’s also a lot of resistance and nervousness around using the technology, how it will work and what it will mean, ultimately, for the end user.”
Another key focus area for Node4, said Skelton, is building its data capability to help customers transform their businesses. Projected to grow by 20 to 30 per cent over the next 12 months, he said that it’s a trend the company is keen to tap into.
“AI is useless without data,” said Skelton. “So it’s vital to have the relevant data sets in place first.”
Regulatory issues
While the UK has made big strides in terms of progress on AI’s development, Skelton said that it was still being held back by regulation, particularly compared to some of its counterparts such as the US. That’s because, he said, concern remains about how well understood and transparent the technology is.
“The government has started to make the right moves in terms of letting the shackles off,” said Skelton. “But there are still too many rules and restrictions that are holding us back.
“The UK has the potential to be a world leader in the field of AI. We just need to enable it to flourish.”
Skelton said that in an ever-changing technology space there are a host of challenges for providers. A major one, he said, is the impact of a tough economy on businesses, prompting many to focus on efficiency gains rather than investing in growth technologies.
Despite this, Skelton is upbeat about future opportunities in the next 12 months. Central to that, he said, is working with vendor partner Microsoft to deliver the simple kind of business solutions that customers increasingly want and demand and today.
As businesses strive for greater cost control and sovereignty of their data, so Skelton also sees an opportunity to help customers move from the public cloud to on-premise private cloud, enabling them to avoid expensive pay-as-you-go type consumption models. It’s a trend that he’s keen to ride the wave of moving forward.
Bolstering capabilities
Node4 has also been in M&A mode in recent years, snapping up TNP, Risual, Tisski and ThreeTwoFour since 2021, and it underwent a big rebrand this year. But Skelton said that the company was still on the hunt for new acquisitions.
“We are very comfortable with the portfolio of companies that we now have, all the way through from ERP solutions to networking security offerings, providing the customer with a full end-to-end service,” said Skelton. “But, with the support of our private equity backers, we are always in acquisitive mode and looking to bolster our existing capabilities, particularly when it comes to bringing in new teams of talent.
“With the companies that we have acquired, they are very much consultancy-led, so we want to productise those offerings so they are ready to sell through the Channel,” said Skelton. “That will also provide a great opportunity for our channel partners to deliver these much-needed services to their customers.”
In 2024, Node4 also announced a significant managed network and infrastructure services portfolio upgrade. According to Skelton, that is now almost complete, with customers getting the full benefit of it, and it will also enable the company to help businesses make the migration to on-premise private cloud.