Remembering Julie Giera

Yesterday we received the very sad news that our great friend and wonderful colleague Julie Giera passed away earlier this week. Although we were well aware of the fact that Julie had been battling breast cancer for several years, I still find it difficult to comprehend the news – in particular since we had lost another great analyst colleague – Andrew Parker – only a few months earlier.

Julie was one of the great stars and a leading voice of Giga Information Group – the analyst firm later to be acquired by Forrester in 2003. She was instrumental in establishing and extending the Giga brand and influence across a wide community of different stakeholders, including many CIOs as well as the senior executives of many tech vendors. She later continued that fame with Forrester where she quickly became a thought leader around the broader IT services market change issues. Julie was one of the founding members of the vendor strategy research team and many of the key reports that she authored over the last years are still relevant today and represent key highlights of our team’s research portfolio. A lot of her great research can still be viewed and downloaded online, so check out the following:

Adaptive Sourcing: Outsourcing's New Paradigm (together with Andrew Parker)

Are Barbarians At The Gates Of Outsourcing?

Services Providers: Are You Ready For The New IT Ecosystem?

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Forthcoming Report On The Future Of The IT Services Market

A combination of factors is combining to reshape and recast the IT services sector. These factors include the continued weak economic environment, the further development of a global delivery model (GDM), new uses of technology across clients’ go-to-market and supply chain ecosystems, the adoption of cloud and SaaS utility-based pricing and delivery models as well as the adoption of a selective sourcing model by buyers. Forrester asserts that these changes will have a dramatic impact on the make-up and dynamics of the IT services business just as the shift to PCs dramatically changed the minicomputer/hardware market in the late 1980s and early 1990s.

Over the past several weeks my colleague John McCarthy and I have conducted extensive research around the future of the IT services market which forms the basis of our forthcoming major research report to be published in June 2010. We talked to approximately 20 of the leading vendor strategists from both leading service provider organizations as well as other key market players like ISVs, SaaS providers and communication services firms. We now offer interested vendor strategists the unique opportunity to hear from us what the major outcome of the research was and what key implications and recommendations they draw for vendor strategists. For this we have designed a workshop format that will deal with the following key questions:

  • Will the emergence of cloud and SaaS impact the traditional IT services market?
  • When and how will that impact play out?
  • How will the economic slowdown and declining IT budgets impact users’ services spending?
  • What are the key attributes for success in the new services market?

If you are interested in such a workshop (either in person or via web conference) please let us know and we will be happy to schedule according to your needs.

HP Completes EDS Integration, But Major Challenges Remain

When HP acquired EDS in May 2008 it was clear that in the short term the company would have to manage significant integration challenges before the medium and long term benefits of the acquisition would come to bear. Now, 18 months later, HP claims that the acquisition has been completed and so it is time to take a closer look at what has been achieved so far. 

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The Acquisition Of ACS Will Change Xerox' Business Model

On Monday morning Xerox announced the
planned acquisition of ACS for approximately $6.4 billion. The acquisition will
be a big move for Xerox’s Ursula Burns, who just recently took over as CEO, and
it is indeed a “game-changer” for Xerox. Long known as a manufacturer of office
products such as copiers, Xerox has exhibited strong growth from its Global
Services business unit in recent years even as other parts of the organization
faced increasing levels of commoditization. This acquisition shows that Xerox is now dedicated to a services-driven transformation
of its business.    

ACS is a $6.3B IT services company provider
of business process outsourcing (BPO), though it also offers system integration
and IT infrastructure outsourcing (BPO services represent 79% of the company’s
business). The company has exhibited decent
top-line growth in the last two fiscal years (5.9% and 6.7%, respectively), though
its BPO services performed better (7.4% in 2009, 10.9% in 2008). Xerox will no
doubt benefit from ACSs focus on two hot markets right now: healthcare and
government services.

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Dell's acquisition of Perot Systems is a good move but won't be enough

Together
with some of my Forrester analyst colleagues earlier today I listened into the
conference call hosted by executives of both - 
Dell and Perot Systems - to explain the rationale behind Dell's
announcement to buy Perot for US$ 3.9 billion cash. There has been some
speculation lately about Dell possibly making such a move, but the timing and
the target they finally picked came as a bit of a surprise to everyone. The speculation was rooted in some of the statements made by Steve
Schuckenbrock, President of Large Enterprise and Services at Dell, earlier this
year where he pronounced that Dell would get much more serious around the
services business. Now, you would of course expect nothing less from someone
like Steve - after all he has spend much of his professional career prior to
Dell as a top executive in the services industry (with EDS and The Feld Group).
To this end Steve and his team finally delivered on the expectation, even more
so as this had not been the first time that Dell promised a stronger emphasis on
services.

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