- Is AT&T really a global player? We think it does little for CSC in global terms. AT&T may have networks with global reach but it is not really a global player in that its in-country reach is limited. It has to be said though that that few network companies are truly global - in spite of the industry's marketing hype.
- The AT&T alliance announcement talks about the integration of cloud services. How does the cloud integration play with the Infochamp acquisition?
- Further reading on this subject can be found here:
- A positive point is that the alliance will probably be well received in USA Federal and Defence circles which will enhance business opportunities in the USA.
- Outside the USA CSC seems to have done little to build business from a corporate level. Although we note a modest $2.5mln investment in cyber security and cloud services in the BHP based facility at Wollongong south of Sydney Australia. Apart from that the story outside the USA seems to be one of reducing staff and disposal of businesses rather than investment, leading us to conclude that CSC is retrenching back to home.
- We note the comment about not having to invest capital in networks. In some ways this is a good thing. But it could mean that CSC, and its clients, may pay more for network usage since AT&T will need its full service margin. If CSC were to use its own capital, of which it said to "have a pile", it could create its own without compromise. We are confused about the benefits and suggest these need to be clearly spelt out.
- Does AT&T takeover CSC's current networks? If so does it pay for what has been invested to date?
- In order to reap the benefits of a new network alliance there will be a need for a joint CSC/AT&T global networks consolidation project. This will take time, money, and may cause some disruption. How much time? How much money? How much disruption?
- What are implications for CSC's own network technology people? Do they join AT&T?
- One final point. Does the AT&T alliance pave the way for a full scale take over of CSC by AT&T?
In conclusion, there are lots of open questions to be answered about the acquisitions and alliances CSC is seeking. We assume they will be answered in the coming weeks.
Changing the subject; CSC sells cyber crime and security services across the globe and is proud of its expertise in this area. So how come its major data centre in Copenhagen Denmark where it processes work for the Danish government can be hacked by outsiders? https://torrentfreak.com/pirate-bay-founder-will-be-extradited-to-denmark-130618/