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
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.
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.
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 Forrester.com.
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.
I just completed my teleconference on “The Mounting Tidal Wave Of Business Video Traffic” and during the teleconference we asked attendees to tell us what video solutions they were using.The poll turned down before everyone could participate fully, so I wanted to open up the question to our blog readers as well.What video solutions are you using?