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IBM Getting PwC Consulting for $3.5 Billion
MoThugz writes: "This Yahoo! News article reports that IBM will be buying PriceWaterhouseCoopers Consulting for a cool $3.5 billion in cash and stock. From the page: 'The purchase is aimed at boosting slowing revenues in the computer giant's large services business, which now accounts for more revenue than its well-known computers and mainframes. ... The merger gives IBM, the world's largest supplier of computers and computer services, the consulting arm of PriceWaterhouseCoopers, the world's largest accounting firm. The combined IBM-PriceWaterhouseCoopers will rank a close second to top consultant Accenture Ltd. , formerly Andersen Consulting.'"
The purchase is aimed at boosting slowing revenues in the computer giant's large services business, which now accounts for more revenue than its well-known computers and mainframes
If they're trying to boost revenue, wouldn't it be cheaper to just hire them as consultants?
You know, I just read a story charging IBM's CEO of running the company into the ground with mergers and acquisitions and deals done to drive the stock up. It was very convincing and a deal like this makes me wonder. Do you guys see this as a good move or one driven by a love of the stock market, and what about IBM's future? Somebody once said, "The service and consulting business is the last refuge of the damned." I can't help but wonder if that will prove to be true.
"A witty saying proves nothing." - Voltaire
Jesus, Andersen changed their name already? What, do they have a small army of business card printers and sign-repainters standing by in case of corporate scandal?
...quality promotion liaison."
"Hey, aren't you from Ande-"
"Hmm? Nope! Nope, never heard of them! I'm from *checks card* uhh, Accenture, and I am a *checks card*
The opinions stated herein do not necessarily represent those of anybody at all. Deal with it.
http://www.monday.com used to be a site saying "PWC Consulting is now Monday" and explained the name. Now it points back to pwcconsulting.com and the IBM announcement.
I guess they won't be calling themselves "Monday" anymore.
http://www.introducingmonday.co.uk
http://www.introducingmonday.com
(Was the official site)
This sort of thing really creeps me out. I mean, from a business standpoint I'm sure it makes sense, but it also seems to be the next step in the sorts of things Karl Marx was describing. We already have a media cartel and a software monopoly. Now we have IT corporations buying up consultancies?
Does this freak anybody else out at all?
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Bleah! Heh heh heh... BLEAH BLEAH!!! Ha ha ha ha...
Accenture has been around for a while. They are the consulting, not the accounting wing from Andersen. They help companies make their ideas into real products and stuff like that. IBM probably figures that they can make a big chunk of change in this field two ways. The direct revenue from consulting, and I suppose the PWC consultants will be "suggesting" IBM solutions for their clients a lot more often now. Win-win for IBM if they can manage the business right.
These figures are off the top of my head, please correct me if wrong.
Consulting made up ~25% of IBM's 18 Billion in revenue last year. It's been a significant part of IBM for a long time and many credit the consulting arm of IBM for pulling IBM through the '90s. IBM is *much* more than a harddrive manufacturer or computer hardware company.
If you have a hard time understanding this, put it this way... IBM was the Microsoft of the 60s, 70s, and 80s. Back then, Computers were mostly for *accounting* and various services that you would hire consultants for. IBM took advantage of this and became big. I question Microsoft, because after ~10 years as a substantial Monopoly, they haven't successfully branched into another area and their largest competition is given away for free.
Anyways, I figured a consulting explanation was in order for anybody who wants to post a *WHY WOULD IBM BUY A CONSULTING FIRM?* comment.
BTW, does anybody know what happened to the name "Monday"? I thought PWC consulting was changing it's name to "Monday". Am I wrong?
Bringing irony to the Slash-masses
Do you think that <voice style="Dr. Evil">3.5 billion dollars</voice> is actual money, or just another accounting glitch?
Hmmmmm.......
Overrated / Underrated : Moderation
Im curious as to if this is IBM's response to Oracle's "underground" consulting group. (underground as in, just regular employees doing the consulting when needed instead of just hiring another party) Now, IBM will have a direct link to their customers and can provide them a complete access tool. Anyone have any thoughts on Oracle/if it will effect oracle's stock in a negative manner drastically?
Just a thought,
Aj
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artlu.net
and this post gets modded down as redundant:
Accenture was originally part of the Arthur Andersen LLC conglomerate, as Andersen Consulting. Notice the consulting, not accounting. In January 2001 they renamed themselves to Accenture and began public trade.
That all doesn't mean that it's off the hook, however.
Today, XYZ corporation went under for bad accounting. Eyes are trained on the actions of the newly formed IBM-PwC.
Microsoft spokesman Mr. Longhorn said "that open-source *had* to have contributed to the shortcomings of their accounting scheme. With Microsoft software, since we do not show the source, corporations can better hide their iillegal deads."
RMS responds, "Accouting through obscurity does not work."
In other news...
for a cool $3.5 billion in cash and stock.
they didn't seem to want to go for my offer of $5.37, maybe after next weeks allowance...
Jesus saves souls and redeems them for valuable cash prizes
Maybe they backed off after they realized their crucial mistake.
Just a guess.
he said... "Accouting through obscruity does not work. The very fact that Federal regulators were able to catch XYZ Corp and IBM-PwC's blunders shows the true power of open source accounting."
Andersen Consulting split off from Arthur Andersen in 1989 - where have you been?
a bo utus\history\hist_ourhistory.xml
http://www.accenture.com/xd/xd.asp?it=enWeb&xd=
next merges
Apple buy IKEA
Oracle buy Chanel
Microsoft buy playschool
Boeing buy John Deer
Didn't HP want to buy this company for 15 billion or so? Hmm so instead they bought Compaq with really grate PR?
I wonder if Walter was right?
I have dealt with PWC's "consulting" before and IBM just paid a lot of money for a really crappy business and a gaggle of STUPID people.
Out of the six or so PWC-run projects I've been involved with at various places of work, every single one has been:
a) a massive failure
b) over budget
c) not at all what the customer wanted in the first place
d) way over on scheduled time
Natural != (nontoxic || beneficial)
take the stick out of PwC's rear. Pompous twits. I interviewed with them for a Sysadmin job, but contrary to Silicon Valley tradition they require degrees. They wonder why they are doing so badly.
Sorry about the writing. Robot fingers, you know? Cliff Steele in DOOM PATROL #23
This acquisition makes perfect sense. Just as corporate security requires much more than just securing the computers, offering business solutions requires more than just offering hardware and software. When IBM's clients are faced with a business problem, IBM can now offer not only hardware and software, but solutions for the tax angle, the public relations angle, etc. My guess is that they've been looking to do something like this for a while, and now there's a 60% off sale going on at the NYSE.
consulting show in town, Linux will be a natural option for IBM/PwC's clients to consider.
Let's roll!
Eternal Monday... the disorientation when you wake up, the slight nausea of forcing your sleep patterns to conform and to comply. The headache from not bothering on weekends to pump yourself up with substances like amphetamine, only less effective and legal. The morning hours spent staring at the screen wondering what the hell I was doing last week. Eternal Monday! Gives me the creeps.
Is this to make it clear that they are doing something about conflicts of interest involving account consulting?
Perhaps they've got some misdeeds that may come to light, and are trying to prevent anything that might be discovered from precipitating an Anderson-esque collapse?
Well, in any event, to an ignoramus like me, it sounds win-win.
Good! Tech mergers mean I get fewer rejection notices!
Table-ized A.I.
The merger gives IBM, the world's largest supplier of computers and computer services First they adopted linux. Then they realized that the best way to make some money from their new friend is by services. This means tech support for business and home users. Batter up msft. Bide your time for it is almost up.
Oops! I did it again
A blast from the past - "HP is considering the acquisition of PricewaterhouseCoopers' global management and information technology practice for between $17 billion and $18 billion in cash and stock, the company confirmed in a statement early this morning."
... compared to the
17 to 18 billion HP wanted to pay 2 years ago.
I had a poop today. Then I fed the cats. Perhaps a little Slashdot coverage is in order? Oh wait, I didn't post the story first on CNN.
They should hire DJ Shadow to mix the IBM and PWC corporate theme songs together (currently number 3 and 5 on the charts, respectively).
// I will show you fear in a handful of jellybeans.
This story sounds like it came straight out of the Slashdot Random Story Generator... Now, I know what some of you are saying, that all of Slashdot's stories sound like they come out of the Slashdot Random Story Generator...but somehow this story just seems more so...it just has that ring to it.
It's pronounced "Ass Enter". And one day someone will be able to tell exactly what the hell PWC does short of bullshitting CEO's. Until then, let the "servicing" begin.
So PWC had to sell off their consulting unit to somebody, or spin it off as a standalone entity. IBM makes sense as a buyer, since they already do IT consulting and related services. IBM probably got a good price, since this was a forced sale.
No big thing; it actually makes sense as a deal.
Q: What do you get if you cross IBM and PWC?
A: IBM
(Yes, it's not funny; it wasn't funny when they bought the company I worked for, either...)
-- Terry
Posted by brian on Wed July 31, 12:56 AM
from the have fun hitting reload page dept.
Yahoo! News is reporting that IBM is acquiring PriceWaterhouseCoopers Consulting. With teh recent coopperation between the two companies its not surprising that they're discussing a closer relationship. What implications wuold a merger of these two companies have on Accenture Ltd. , formerly Andersen Consulting.? Will we see new developments in consulting?
Last year HP tried to buy PWC, the deal ended because the price was too high, something like $18 Billion. Now that HP has merged with Compaq and has all of the Compaq nightmares IBM buys PWC for $1.5 Billion.
Carly must be dieing right now.
"The poet presents his thoughts festively, on the carriage of rhythm; usually because they could not walk" Nietzsche
"We'll need some noodle-brained consultants to cover for us."
"Monday."
"Do you think we can wait that long?"
"Yes, they are slow, but they're dumber."
"Who?"
"No, who's on first."
"Who?"
"Exactly."
"How about PWC?"
"You're supposed to call them Monday."
"They're not on my calendar."
"Then call them tomorrow."
"But you said to call them Monday."
"Do you think we can wait that long."
"Didn't I ask you that?"
Garfield made them re-think that change.
- Tal Cohen
They could have got me for maybe 40 grand.
As merger season is apparently upon us, here's some other possible additions to the merger club:
Hale Business Systems, Mary Kay Cosmetics, Fuller Brush, and W.R. Grace Company merge to become Hale Mary Fuller Grace.
Polygram Records, Warner Brothers, and Keebler Crackers merge to become Polly-Warner-Cracker.
3M and Goodyear merge to become MMMGood.
John Deere and Abitibi-Price merge to become Deere Abi.
Zippo Manufacturing, Audi Motors, Dofasco, and Dakota Mining merge to become Zip Audi Do Da.
Honeywell, Imasco, and Home Oil merge to become Honey I'm Home.
Denison Mines, and Alliance and Metal Mining merge to become Mine All Mine.
Xerox and Wurlitzer will merge and begin manufacturing reproductive organs.
Fairchild Electronics and Honeywell Computers will merge and become Fairwell Honeychild.
3M, J.C. Penney and the Canadian Opera Company will merge and become 3 Penney Opera.
Knott's Berry Farm & National Organization of Women will merge and become Knott NOW!
<!-- DHTML / JavaScript menu, popup tooltip, Ajax scripts -->
Anderson Consulting was spun out of Arthur Anderson the accounting firm, it was set up to take advantage of the "additional" services that they could offer to clients whose books they audited.
So it is actually founded on exactly the mentality that led to Enron et al.
An Eye for an Eye will make the whole world blind - Gandhi
I hope the Bob's don't start laying people off!
"Things are more moderner than before- bigger, and yet smaller- it's computers-- San Dimas High School football RULES!"
these big IT consulting firms are only as good as the clowns they put on your project. In my career so far, i've been involved in 3 major projects involving "Big 5" consultants. Often, you get graduates with little experience under their belt.
Their answer to this is that their employees are able to draw on a vast and global pool of knowledge.
I think that's bollocks.
I once talked to a very high level consultant working for one of the big consultancy firms, at a bar. He told me this,
"Look at there business and come up with the most complicated solution, and describe it in the most vague and unintelligible way you can. Make sure to use lots of big technical words,especially trendy ones, feel free to make up entirely new terminology to desribe everyday things. For instance a gateway is now a "Inter/Intra network liason device", and a router is now a "packet traffic management switching and delegation processing unit." Do not spell out clearly how to implement your plan. If the business does well, take all the credit. If not, claim they did not implement your plan correctly, and that it is their own fault for leaving out the most "critical" piece of your solution."
That was from a guy I knew in Philly who made 7 figures a year, and that he employed the strategy on all consultant gigs from management, to manufacturing and IT.
Could Jesus microwave a burrito so hot, that he himself could not eat it? HS
They changed it to Accenture in January 2001.
Don't answer me. Moderate. Slashdot is about moderation, not discussion.
...is the merger of my size 10 1/2 and Lou Gerstners ass. Sanmina sucks!
Someone hates these cans.
eg. when the company I work wanted a new ERP system, the did not trust their own employees to do it. So they hired a large consulting firm, we'll call them AC (think Neo's real name). They promised SAP experts by the bucketload with more experience that you can fit into a single lifetime. Before the project started a team of our guys went on a SAP course and met some people from AC, new recruits who were being trained up.
When they came back off the course they were more that a little surprised that those same people were a large part of the team sent to us by AC to put our system in.
Even in its heyday, IBM made its profits from selling goods, so it couldn't generate the obscene amounts of cash which MS is sitting on. The scandal is that MS has made monopoly profits from software, where the direct cost of sale is almost zero, and rather than doing anything with the money or paying it to shareholders in dividends (and hence paying taxes like the rest of us) they have amassed a cash mountain. So while IBM has bought PwC Consulting, MSFT has *chosen* not to.
So on Microsoft's part, this displays either a different plan or (more likely) a lack of vision. Having made easy money from the Windows/Office monopoly, they don't understand how to run a "normal" business where you have to sell goods or services (where the cost of sale is not insignificant compared to the price tag).
As for IBM, while Global Services is a managed service offering which also performs implementations, PwC Consulting will be mostly implementation based. Their plan will be to use the PwC arm to feed ongoing business into GS (which means that when they report the accounts of the two arms separately IBMGS will show impressive growth).
Dunstan
The last scintilla of doubt just rode out of town
"...you have to keep them under a tight reign."
rein. under tight rein. like reindeer. they're reined together, see? or like horses. that's where the saying comes from. if you give a horse free rein, it will just do as it pleases. to control it, you have to keep it under tight rein.
pedant n: a person who pays more attention to formal rules and book learning than they merit (WordNet ® 1.6, © 1997 Princeton University)
It is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail. - Abraham Maslow
If some employees leave or get sacked from PwC, I hope they send emails around as good as this one from a sacked PwC employee.
I'll do it for cheesy poofs.
Check this out then -- it's sad and hilarious at the same time, perfect drama in other words. It's mostly about business consultancy, not IT, but it's the same patterns. Highlights include Anderson getting bonuses that get higher as they manage to get more people fired at the client site.
I have worked with major consultancy firms. Their work is substandard and they attempt to bully their way past any independents or local technical management with incompetent ideas that are poorly implemented.
What they give to senior management is schmooze, payoffs (come visit our corporate HQ in the Bahamas) and the ability for the board to escape the blame when defending their poor results to shareholders.
I have seen the large consultancy companies take 200 people to do the work of 20 competent staff. This is why I dislike the biggies so much.
Does PwC store their data on IBM GXP hard drives:
http://www.tech-report.com/onearticle.x/3494
and
http://www.tech-report.com/news_reply.x/2799/
and once IBM takes them over, will IBM store PwC data on IBM GXP (different link from one above) hard drives?
Those looking may like to note that Accenture's full name is Accenture Ltd and it is registered in an offshore tax-haven (Bermuda). It appears that they haven't lost their bad habits from the Andersen days. This fact is not revealed on their web site or their annual report, however its is revealed in their SEC 10K Filing. They in turn own shares in Accenture SCA, a Luxemburg based partnership which is the main operating body. That is minimal fiscal transparency.
Um no. The pressure came from the SEC over independence issues, starting some 3 years ago.
Of course, in the last 6 months, it's only got stronger, and now there's significant client pressure as well.
The only thing you can accurately describe as "Scotch" is a sticky tape made by 3M. And it's
The audit side dumping the consultancy side..? Try the other way round. The consultancy side wants to be free of the audit side as soon as humanly possible. I work for one of these orgs, btw, hence the AC post.
You obviously didn't notice that Microsoft now sells a CRM suite and a reasonably well thought of Content Management System.
Now the CRM suite is no match for Siebel, as it's targeted at SMEs, but the CMS is in the tier just below Vignette and Documentum, and has inflicted major price movements in the CMS market.
Oh, btw, spot on with the rest of your comment.
The only thing you can accurately describe as "Scotch" is a sticky tape made by 3M. And it's
Why did the chicken cross the road?
-.-.-
Answer from Price Waterhouse Consultant:
Deregulation of the chicken's side of the road was threatening its dominant market position. The chicken was faced with significant challenges to create and develop the competencies required for the newly competitive market. Price Waterhouse Consultant, in a partnering relationship with the client, helped the chicken by rethinking its physical distribution strategy and implementation processes.
Using the Poultry Integration Model (PIM), Price Waterhouse Consultant helped the chicken use its skills, methodologies, knowledge capital and experiences to align the chicken's people, processes and technology in support of its overall strategy within a Program Management framework. Price Waterhouse Consultant convened a diverse cross-spectrum of road analysts and best chickens along with Price Waterhouse Consultant with deep skills in the transportation industry to engage in a two-day itinerary of meetings in order to leverage their personal knowledge capital, both tacit and explicit, and to enable them to synergize with each other in order to achieve the implicit goals of delivering and successfully architecting and implementing an enterprise-wide value framework across the continuum of poultry cross-median processes.
The meeting was held in a park-like setting enabling and creating an impactful environment which was strategically based, industry-focused, and built upon a consistent, clear, and unified market message and aligned with the chicken's mission, vision, and core values. This was conducive towards the creation of a total business integration solution. Price Waterhouse Consultant helped the chicken change to become more successful.
-.-.-
-.-.-
Answer from Arthur Andersen Consultant:
The chicken's traditional posture was threatened by global competition, and it had to move upscale, creating the competencies required for its emerging market. Andersen Consulting (AC) partnered with this client, helping it to reconceptualize its physical distribution strategy and to implement the requisite survival processes. Anderson's Poultry Integration Model (PIM) re-aligned the client's technology in support of its overall strategy within a Program Management (PM) framework of Direct Crossing (DC). Leveraging their synergy together, the client and Anderson integrated the underlying mission, vision, and core values into a total managerial solution and enabled a successful AC-DC cross-median traverse.
OK so they slashed BIS in the thousands of jobs. They crush variable pay so that if you literally walk on water you get a dollar or two. Annual increases are cut by 75%. Dump the disk business. Cut all business travel. Training dollars - if there ever were any are now approved by God Himself and No One Else. 2 to an office is standard. Conflicting gibberish about whether we're supposed to work mandatory 15% OT or if were supposed to bill 40 hrs to internal and not one minute more. Constant chatter of who will get cut next & when. Stock is down by almost half. And now we have to make room for 30,000 PwC pussies? Let's see how many Partners are converted into a new gibbering gabble of do-nothing VPs and high dollar pimps. Half of these beotches are the same customer hired flunkies who are on an engagement to tell the customer what a bunch of fucked up losers the IGS team is - now we're all gonna be one big wet sploogy purring love pile.
God was smoking rat poison on this one.
Monday, as long I as have Friday *and* Saturday I'm fine!
Back in the day (before it was known as PwC) I worked for PW. Because they were a part of a accounting company, they were constrained by the accounting rules. This meant that even though we computer types were not accountants, we still needed to comply with the investment rules and the continuing education rules. We watched Andersen form AC, then morph that to Accenture, and wondered what was stopping PW from doing the same thing.
:)
I've seen some postings about idiots, wasted money, and pet technologies being implemented by these firms. I worked with some of the smartest people I've ever met while I was at PW. I also watched some big dopes try to make things work.
Some folks did squander client's money. Other clients demanded that we build something that pleased the CIO of their company, even if they were told that it would never solve the problem that they wanted it to solve.
I did participate in some great projects - projects that helped companies and government agencies solve some really big problems.
PW's strength (from my perspective) was that they could bring smart people to the table who could figure out how to solve problems while not being held back by company politics or excessive meetings.
Now, as a member of a large corporation, I see that there are many projects that we are simply unable to tackle because we don't have enough team players, or enough aggressive and smart players to move the ball. That's when we call the big folks like IBM and Accenture.....
I guess my pension $$ are now a part of IBM's program.
But Herr Heisenberg, how does the electron know when I'm looking?
Here's the thing.
IBM has done very well because of diversification. They were able to postpone any impact of the recent economic downturns mainly because of this. However, eventually even IBM would feel some impact.
The reference that consulting is the last refuge of the damned, at least how John Dvorak seems to be using the phrase is incorrect. While this may apply to individuals, it most certainly doesn't apply to the consulting firms themselves. Gerstner groomed Sam Palmisano to take over the helm for awhile. I don't think things are so doom and gloom as John would have us think. Of course I am not much a fan of his negativity, but still.
I have said it a 1000 times and will say it again, that you can train a monkey to sell hardware. Anyone who knows how to sell can sell hardware. The trick is clothing that hardware with software and implementation, support or development services to make that hardware worth a damn.
IGS has long been a great source of revenue for IBM, but their recent moves towards the "utility" concept for e-biz hosting etc, means needing more resources. I am sure IBM sees this as any way that they can further the interests of IBM in the marketplace...so hey, why not?
Many have mentioned the relationship to the financial sector and that something seems odd here. Recall the PWC isn't 100% a financial consultancy. There is the more or less IT and geneal business consulting group, and of course the financial side. IBM also has IBM Global Financing out there providing a substantial chunk of deals for many of the smaller to mid-size customers.
The only thing I can see is I think the fit is good, however, of course there will be some integration issues at least at the outset. IBM has fairly consistantly been smarter than the average bear. I believe HP had looked at this acq. earlier, say a year or more ago and the pricetag was far higher. Why not jump on it now?
I think IBM has a hattrick here. The services business is not going away. Things may not boom for a while yet, but you bet your butt that when it does -- IBM is already geared up and ready to take it on.
..does this mean they'll be renamed Blue Monday? Or failing that, Big Blue Monday?
Back when I worked for IBM in telecomm, we "merged" with a company consisting of four guys in Santa Clara. Much use was made afterwards of the Far Side cartoon with the penguin singing "I just gotta be me".
--
E_NOSIG
I have an extensive background in software development, and telecom, and I am recognised on my team as the resident geek. But the rest of the players are the monkeys you describe. I was on a project last year where I had to teach the team how to use FTP! I mean WTF! All team members have great communication skills, but they simply have no clue about the technology and architectures we are constantly proposing.
Now project management is something that we are very good at, but actual execution is something else. Only once have I been on a team that I respected, and we delivered a complete Telco in a Box solution that worked as designed and the client loved it. But in reality the client was a startup and they didn't need a $7 million OSS to run their business, they only had 30 customers. They could have spent their money more wisely and used Excel spreadsheets for the first couple years as they ramped up...
www.jmagar.com
-
Of course if your accounting firm is a little worried about being another Andersen
Buy your accounting firm!
Just another paranoid conspiracy theory of course.
------ The best brain training is now totally free : )
...when he said Con plus Insult equals Consult... I'm your Consultant
From what I've read since, PwC was planning on separating PwC Consulting and raising money from an IPO. They hoped to get $7 billion to $9 billion for it. And they were planning on incorporating it in Bermuda. So I'd say your claim that the price would be about the same seems a bit off.
Good point, perhaps the tax angle isn't a good example. But management consulting should include the PR angle, personnel deployment, and finance. Who knows, it might even include some superficial tax advice if the consultant has the right background -- not tactical tax advice, but strategic. At any rate, they can offer more than hardware and software.
Great, I can't wait to see the faces of the PWC spooks as they become assimilated into our blue machine.
If it is anything like some of the others we have assimilated, then quite a few will resign in fustration at trying to get anything done.
Jesus, this place sucks a$$.
Just want to add one more reason why this makes sense (for those who aren't familiar with the IT services industry).
The services arm of IBM has MUCH better margins than the hardware arms. Less people - more money generated.
In the beginning, there was Andersen Worldwide, which owned Andersen (Accounting) and Andersen Consulting. Long story short, Andersen Consulting got mad about subsidizing the "other" Andersen (Accounting) because Andersen Consulting was making MUCH more money and still having to chip into the "partner pool", which unfairly (so they say) rewarded the low margin accounting business with the high margin profits from consulting. Sooo, Andersen Consulting decided they wanted to break away from Andersen Worldwide.
Insert 2 years of lawsuits
Andersen Consulting is allowed to break off and decides to rename itself to Accenture. The rest of the "old" Andersen Worldwide stays the same -- until Enron.
I just want to point out that virtually NONE of the clients I have *ever* worked for have the skill set or staff to fully operate and manage a project that requires 100's of people.
So, for example, if Fortune 20 company X wants to put in a new billing system and that billing system project requires 135 people -- who the hell do you think has the manpower to do that project? Certainly Fortune 20 Company X doesn't want to hire a bunch of full time personnel for one project.....
So, therein, lies the reason Big 5 does so well. They do provide value for CxO's, although, what's valuable to a CxO may not be what's valuable to you.
disclaimer: I don't work for big-5 and never have. I also realize they aren't perfect but they aren't worthless either.
What better way to raise revenues then to buy a consulting firm that will just happen to suggest IBM mainframes/servers now?
(not that there's anything wrong with that.. well there is morally.. but this is business! who needs morals when there's millions to be made! woohoo!)
What's next? The return of Token Ring? IBM had a pretty good setup there with all the royalties and such.
Well the owner might of changed.. but estimates, and dates of completion will no doubt still be totally useless as what consulting firm ever sticks to those?
(that goes for all consulting firms I have had the misfortune of dealing with)
You are right: PwC Consulting was supposed to rename itself to "Monday". What a name! Supposedly the decision was influenced by cellphone static:
Partner A: "So have you decided on a new name yet?"
Partner B: "No, we'll decide how to name it on monday!"
Partner A hears: "(fshshfsh...) we decided (fshshfsh) to name it (fshshfsh) 'Monday'!"
So what were the partners to do after the new name was announced? Stick to the name, and risk losing all their employees (who would want to work for Monday)? Or revise the name and admit they're too stupid to name their own company. No, the only possible solution that allowed to save the company and to save their own face was...
Sell it! Quick!!!!
PWC was the second-biggest "business consulting" firm. The biggest IT Consulting firm was, and will continue to be, IBM Global Services. It will simply now have a much bigger business consulting wing. (It already had one, it just wasn't as large.)
HP tried to by that same division for $38 billions 3 years ago. I say they are getting a deal.
Looking for a great online backup: Green Backup
Remeber when HP was going to buy Price Waterhouse Cooper a year or two ago?
HP wanted to buy it for 17-18 Billion.
IBM will now be buying it for 1/5 of that.
Here is the link if no one remembers.
What a mistake that would have been!
Moon Macrosystems. Sun's biggest competitor.
One of the projects I worked couple of years back had overhyped overfed clean smooth talkers from Accenture...the type you find in consulting.
The company had a very very expensive content management system which unfortunately had static HTML pages. The Accenture guys were charging 200 dollars an hour to code those static HTML pages.
The employees of the company (who were very competent - senior engineers from Iran, Russia and India) were sidelined by these smooth talkers. The management was completely sold on the complex powerpoint presentations made by a fatso...the smoothest talker of the lot.
I worked there for two months...I had an altercation with one of those smooth talkers and he made sure I was fired.
The company closed down 6 months later.
Tat Tvam Asi
I think that its pretty telling, the fact that so few IT Consulting people have expressed their opinions in this forum. Slashdot is a fairly natural port of call for programmers, yet the IT consultants don't seem to have a presence here (or if they do, they're mighty damn quiet).
I know a little about these companies and it seems that whatever problem you want fixed, it has the exact same solution as that for all their other clients (usually installing a very expensive ERP). This unchallenging m.o. obviously doesn't lend itself to keeping up with the latest ideas in the IT field, thus negating the need to check Slashdot, almost a subconcious action on the part of most regular programmers.