I have just come back from our own Business Technology Forum
in Chicago where my colleagues presented about the concept of “lean production”
to an audience of application development and business process professionals:
how the IT industry, including enterprise IT, must now finally address and
improve its R&D and production processes, just as other industries have
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 $6.3B IT services company provider
of business process outsourcing (BPO), though it also offers system integration
and IT infrastructure outsourcing (BPO services represent 79% of the company’s
business). The company has exhibited decent
top-line growth in the last two fiscal years (5.9% and 6.7%, respectively), though
its BPO services performed better (7.4% in 2009, 10.9% in 2008). Xerox will no
doubt benefit from ACSs focus on two hot markets right now: healthcare and
with some of my Forrester analyst colleagues earlier today I listened into the
conference call hosted by executives of both - Dell and Perot Systems - to explain the rationale behind Dell's
announcement to buy Perot for US$ 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.
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.
We are all familiar with the story – mobility is hot and is taking root within firms of all sizes. Why? Mobility solutions improve employee productivity and efficiencies. However, the down economic environment has changed corporate priorities. It is no surprise that our data shows that cost cutting activities for telecom data center, and servers dominate initiatives for the next year. See the report: Demand Insights: Enterprise Mobility 2009 for more information.
But, there is another story. We found that nearly 35% of companies identify offering more mobility support including deploying mobile applications and mobile devices as a critical or high priority for their companies in the coming year. This is not shabby during these difficult economic times.
I grew up skiing in great skiing states like Colorado, Maine, and Wyoming. When I was in my mid-20’s I realized a funny thing about skiing -- that just about everyone who has ever made it down a black diamond ski slope fancies themselves to be a good skier. I’ve been skiing with all different types of skiers, and they all think they’re experts.
Contrast that to the game (or sport) of golf. In golf, unlike skiing, there are clear standards, rules, and a score. At the end of my golf game, when I end up with a 110 and three triple-bogeys, I can’t claim I’m an expert golfer. There are people all around me who can prove to me, in their scores, that they are far better than I am. But rather than get me discouraged, their scores serve as a model for me, and they motivate me to get better.
I was intrigued and excited to see Google announcement of their second operating system effort today, Google Chrome OS. I’ve been thinking about how client operating systems will evolve ever since I began struggling with having data spread across multiple PCs. I finally gathered together my thoughts on the future of client OS in the The Personal Cloud, published just two days ago.
My working title for this report was “Death of the PC OS” because I believe that the industry needs to rethink and expand the role of PC and device operating systems.