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Alight (ALIT) Completes Cloud Migration to Reduce Costs
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Alight (ALIT - Free Report) announced the completion of its cloud migration program from data centers, adding to its sustained efforts to improve its margins and simplify its business. The company has fully decommissioned its Lincolnshire data center and shifted to Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”) ecosystem.
This transformation is expected to reduce the number of servers by 40%, middleware systems by 60% and software used by 95%. These factors, along with Alight Worklife’s shift to AWS, will aid ALIT in saving almost $75 million annually. The new system will also increase the efficiency and automation of the company’s solutions.
In line with Alight’s objective to simplify its business, the company divested its Professional Services segment and its Payroll & HCM Outsourcing divisions to an affiliate of The Hartford Financial Services Group (HIG - Free Report) in early 2024.
This deal with the HIG affiliate infused up to $1.2 billion in capital to reduce Alight’s leverage and margin while boosting shareholders’ value as the company increased its stock repurchase program by $200 million. Although ALIT divested the Payroll & HCM Outsourcing business, it formed a partnership with the divested company to retain its expertise in this sphere.
Alight operates in an extremely competitive human capital management and employer solutions market that comprises players like Paycom (PAYC - Free Report) , Paycor, Bamboo HR, Workday and many more. Many of these companies have solutions that are comparable to ALIT’s offerings.
While Paycom and Paycor are leaders in payroll services, Workday leads the global workforce management market. Bamboo HR is a dominant player in the employee self-service solutions market.
To maintain its competence, ALIT is enhancing its Alight Worklife platform into a one-stop shop product. So far in 2024, Alight Worklife has been enhanced with a new integrated leave management feature, Alight LumenAI, and a virtual care solution for employees. These features have helped Alight Worklife to differentiate from other products in the market.
The company has also automated its AI-supported leave management solution, SmartSTART, and launched Straight Through Processing for absence and benefit management. Notably, the company won customers, including UPS, Wayfair, American Honda Motor Company and the Adecco Group in the second quarter of 2024.
Conclusion
Alight is continuously focusing on improving margins and increasing shareholders’ value by cutting costs and gaining larger customers through innovative product launches. ALIT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Alight (ALIT) Completes Cloud Migration to Reduce Costs
Alight (ALIT - Free Report) announced the completion of its cloud migration program from data centers, adding to its sustained efforts to improve its margins and simplify its business. The company has fully decommissioned its Lincolnshire data center and shifted to Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”) ecosystem.
This transformation is expected to reduce the number of servers by 40%, middleware systems by 60% and software used by 95%. These factors, along with Alight Worklife’s shift to AWS, will aid ALIT in saving almost $75 million annually. The new system will also increase the efficiency and automation of the company’s solutions.
In line with Alight’s objective to simplify its business, the company divested its Professional Services segment and its Payroll & HCM Outsourcing divisions to an affiliate of The Hartford Financial Services Group (HIG - Free Report) in early 2024.
This deal with the HIG affiliate infused up to $1.2 billion in capital to reduce Alight’s leverage and margin while boosting shareholders’ value as the company increased its stock repurchase program by $200 million. Although ALIT divested the Payroll & HCM Outsourcing business, it formed a partnership with the divested company to retain its expertise in this sphere.
Alight, Inc. Price and Consensus
Alight, Inc. price-consensus-chart | Alight, Inc. Quote
Alight Enhances Its Existing Portfolio
Alight operates in an extremely competitive human capital management and employer solutions market that comprises players like Paycom (PAYC - Free Report) , Paycor, Bamboo HR, Workday and many more. Many of these companies have solutions that are comparable to ALIT’s offerings.
While Paycom and Paycor are leaders in payroll services, Workday leads the global workforce management market. Bamboo HR is a dominant player in the employee self-service solutions market.
To maintain its competence, ALIT is enhancing its Alight Worklife platform into a one-stop shop product. So far in 2024, Alight Worklife has been enhanced with a new integrated leave management feature, Alight LumenAI, and a virtual care solution for employees. These features have helped Alight Worklife to differentiate from other products in the market.
The company has also automated its AI-supported leave management solution, SmartSTART, and launched Straight Through Processing for absence and benefit management. Notably, the company won customers, including UPS, Wayfair, American Honda Motor Company and the Adecco Group in the second quarter of 2024.
Conclusion
Alight is continuously focusing on improving margins and increasing shareholders’ value by cutting costs and gaining larger customers through innovative product launches. ALIT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Alight have plunged 19.7% against the Zacks Internet - Software industry’s growth of 9.6%.