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HPE To Spin Out Its Huge Services Business, Merge It With CSC (cio.com)
itwbennett writes from a report via CIO: Hewlett-Packard Enterprise announced Tuesday that it will spin off its enterprise services business and merge it with IT services company Computer Sciences Corp. (CSC) to create a company with $26 billion in annual revenue. The services business "accounts for roughly 100,000 employees, or two-thirds of the Silicon Valley giant's workforce," according to the Wall Street Journal. In a statement, HPE CEO Meg Whitman said customers would benefit from a "stronger, more versatile services business, better able to innovate and adapt to an ever-changing technology landscape." Layoffs were not a topic of discussion in Tuesday's announcement, but HPE did say last year they would cut 33,000 jobs by 2018, in addition to the 55,000 job cuts it had already announced. The company also split into two last year, betting that the smaller parts will be nimbler and more able to reverse four years of declining sales.
On a lighter note, a topical joke:
A new CEO is examining his new office. In a drawer, he finds a note and three sealed envelopes. The note says "Hello, dear successor. You find here three numbered envelopes. Every time your numbers look bad and the board wants your head, open them, in order, and do what you find inside."
Well, not even a month after he took the helm, he creates his first huge blunder. Desperately he opens the first envelope and reads
"Blame your predecessor"
He does at the meeting and the board is appeased. Everything keeps going ok for a while until his numbers start to plummet and the board wants answers. He opens the second envelope and reads
"Restructure"
He does, everyone's busy restructuring and nobody can identify who is to blame for the increased costs. But after a while, restructuring is pretty much done but the increase in revenue is not coming in. Desperately he opens the third envelope and reads
"Prepare three envelopes"
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Won't the new company have a near monopoly on incompentent consultancy?
Not at all. There is IBM, Andersen, McKinsey, etc. Incompetent consulting is a big and competitive business.