CSC looks well positioned for current spending patterns

I recently attended a CSC analyst event in which they described several of the wins and initiatives that they have experienced over the past year.   Like many services companies Forrester speaks with, the company is taking a heavy vertical (industry-specific) market strategy and positioning itself in hot markets related to government spending, healthcare, and energy.

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Do I hear 500? ... Do I hear 600? .... Nortel sold for $900 million

After a long week-end of sleepless nights, hurried hotel arrangements, and slow court proceedings, Nortel has the court’s blessing to sell their Enterprise and Government Systems Groups as well as DiamondWare assets) to Avaya for $900 million plus a $15 million fund for retention of key employees.  Nortel’s Enterprise Solutions group posted latest quarter revenue of $464 million  -but even with corporate gross margins near the 40% range, Nortel overall posted a loss for the quarter.  Avaya assumes negligible liabilities from debt and none from pensions.  The deal is expected to be accretive to earnings well within 24 months.  Business leaders (and accountants) must find a way to make the Enterprise assets profitable in the short term.   

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Introducing the blog challenge on innovation trends

Dear readers and friends of our blog,

conversations with CEOs and managing partners of innovation consulting
specialist firms inspired me to write a piece on trends in the
innovation consulting services market. This report is nearly done and
will be published in a couple of weeks.

You have the chance to
receive a free copy of this 10-pager before its official publication.
What do you have to do? Simply share your view on trends in innovation
with us. My colleague Chris Andrews and I will then select the best
three responses from all your comments. The timeline? This challenge
will end on Monday 21 September, 2009 at noon EST.

As a starter, let me give you a sneak preview on two of the key trends that I am outlining in my report:

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Tech Mahindra Prepares for Success in 2010

I had an interesting briefing with L. Ravichandran, the Executive Vice President and COO of Tech Mahindra this week.  This was quite a nice briefing to have from the company, given the dramatic changes that have taken place over the last year.  In January, Forrester analyst Sudin Apte and I wrote about the drastic consequences of the accounting fraud at Satyam (“What the Events at Satyam Mean For Service Providers”). Sudin has continued to write about the subject with great research that would interest virtually anyone in the IT services industry (clients and tech professionals) on


Mr. Ravichandran stressed a few key points to me:

Read more Gets Kids: Attack to the Small Business Market

Salesforce pic introduces today the Contact Edition and is approaching for the first time the small enterprise segment.

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Old projects and new mainframes

A long time ago (about 35 years), I was the project leader and main designer of what was probably the first true distributed solution. It started with one of the largest bank in Europe, which went through a one month strike of its data center. In what was probably the Jurassic period of IT (which makes me a dinosaur), the centralized mainframe reigned supreme and of course the whole commercial part of the bank ground to a halt, and with it millions of customers who could not get to their money.. The CIO (the title did not exist at the time, but the function did) came up with the brilliant idea of putting a server in each branch, connected to the central mainframe through a network. Each local server had to be able to process locally, on a local "database" all the typical operations of the branch. This would guarantee that, in case of a repeat strike, the basic banking needs of customers would be covered. So armed with the latest minicomputer from Honeywell and several $Millions in project money, we set up developing everything in sight: network protocols, transactional languages and supervisors, local file structure, etc. Even intelligent virtual terminals.

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