Friday, 17 January 2014

B******t Baffles Brains? Not this time

One of our correspondents is so het up about CSC's latest pronouncements that he offers this posting for consideration.

CSC has announced it is working with HCL on providing combined solutions to achieve the much needed growth that evades them. Silicon Angle has many good comments on it in the following LINK
I also have a take on it, and comment on some of CSC's own statements.

A. CSC is bailing out of outsourcing so goodbye all the support staff in that area of the business.  
B. What the hell is 'a cloud agnostic platform' a building by of Richard Dawkins? Bullshit or what? 
C. Multi vendor cloud solutions! Give me a break. It means no one can do it so we are scrambling to cobble together bits and pieces. Bullshit or what? 
D. 'Service mashups'! Bullshit or what? 
E. 'Modernize cloud applications at scale'! Since cloud is relatively new where are the old cloud apps that need modernising at scale. 

 This all takes me back to the early days of IT when IT departments and professionals were accused of not talking sense by using IT Nerd Speak. Many tried to use this goobledigook to pull the wool over the eyes of company management, or didn't really know what they were talking about. Eventually they got found out and Company managements put in their own business experienced managers to run IT depts. Do they never learn? 

 Bottom line is, as has been discussed many times by Cassandra; IT services, apps services, and business services are changing fast (going through a revolution in fact) due to new technology, client experience and increased capability, along with new opportunities from in built intelligence in many devices that were once stand alone and are now integrated and digital. So rather like the way old IBM thought everything needed a main frame and only after IBM nearly collapsed and became service oriented did it become credible. IBM is about to invest $1bln+ in cloud solutions. CSC seeks an alliance, whoopee! I think that CSC sees everything as needing 'integration' and its high price consultants and won't put its money where its mouth is.

Thus CSC is trying to false fit a failed past onto a new shape future. Or to put it another way, to the man with hammer every problem is a nail that needs bashing.
Good luck to them.

For a BS antidote try this link.
author. Mexican Pete


Anonymous said...

> What the hell is 'a cloud agnostic platform'

aka ServiceMesh - it can use vCloud or AWS or many other cloud hosting IaaS provider under the covers. In that sense the SaaS running on top is cloud agnostic and could be brokered to the provider with the lowest cost profile for the apps characteristics.

> 'Modernize cloud applications at scale'! Since cloud is relatively new where are the old cloud apps
> that need modernising at scale

From what I've read its not modernising cloud apps, its modernising legacy apps and then cloud hosting them. Diffferent slant.

I share some of your scepticism - for example, if the announcement is to be believed, app modernisation to cloud is a huge market so how much revenue was the existing CSC A.C.E modernisation/enablement business unit delivering?. Though on the specific bullets/quotes above I think you've been just a tad harsh ;)

Anonymous said...

This is a logical consequence of CSC's consistent sales failures in outsourcing. But how can one expect the sales force to sell vapourware?

I wonder if CSC has kept a record of sales campaigns which collapsed when the customer realized that CSC could not demonstrate or reference the capabilities they were trying to sell. The lack of investment in delivery capability over the years has come back to bite them.

CSC needs to look urgently at its Healthcare capabilities before they are forced into getting out of that market too. After the NHS fiasco, CSC is now being sued by healthcare providers in Norrh Carolina over the alleged failure of its NCTracks system. With customer "references" like those, which client will believe anything CSC says about its Healthcare portfolio.

Anonymous said...

Here's the link to the news about yet another CSC failure.
CSC may be restructuring but it is by no means working very well.

Anonymous said...

That's not the funniest thing about the whole HCL deal.... the best bit was where Mikey boy used the term "BizCloud(tm)" when actually he should have said "BizCloud (probably someone else's TM)":

Anonymous said...

Hey Mikey Boy - Brilliant strategy my boy!! First let's build our future business model around Cloud Services. We do many things poorly, but Cloud is one area where we do a pretty good job. Next, let's fire the executive that build the Cloud business. After all, She was a "She" and we can't have that in our club, now can we?. Let's follow that up by partnering with a well run India company. You can lift the kimono show HCL all our tricks. As soon as they learn everything of value and get a list of our customers, HCL can say "FU" CSC and steal our Cloud Customers. Way to go Mikey Boy! Way to go!!

Anonymous said...

This is a BS strategy. People who knows HCL knows their history as well. Starting with HP, then Answerthink, their list of JVs and partnerships evaporated in no time, the moment they learnt something from their partner. Mike will learn this soon despite his fondness and affection for Shiv Nadar. BTW, what has been CSC's business in modernization?? So far it is zilch..Even if a customer signs up for Cloud, the great brains running that business do not deliver..Way to go..

Anonymous said...

deliver dynamic methodologies, revolutionize vertical deliverables, deliver distributed synergies... exactly as any other IT consulting company, but ours is unfornately worst.

Anonymous said...

Mike Lawrie did the right thing with this move.
It is no surprise that CSC is withdrawing from outsourcing. Lawrie was left with little choice given CSC’s accumulation of mistakes and errors of strategic direction going back 15 years. These were always going to come back and bite CSC and they did. The surprise is that CSC succeeded in managing down major problems in outsourcing for so long. The good news is that they have now found an exit strategy before outsourcing losses and failure to win new business brings the company to its knees as NHS did a couple of years ago.
The strategic errors included initially keeping so many small data centers that came with outsourcing wins, leading to lack of scale and islands of inefficiency; the profit models which created high profits in the early years of a contract but little or no profit in later years; the permanent need to sign up more and more (doubtful quality?) new business to mask the profit shortfalls in the later years of older contracts; the unachievable “cost challenges” factored into the profit models which kept pushing problems into the future; the failure or refusal by CSC top executives to understand the changes in the outsourcing market; a stubbornly persistent focus on trying to win mega deals when it was clear that the era of the big infrastructure and apps deals was over; and then the recurring cancellation of investments to compensate for the shortfalls in “this quarter’s profit” .
The tragedy is that CSC could have been one of the pioneers and leaders in Cloud, as it had been in the 1990s in infrastructure and apps outsourcing. Things could have been different if a decade ago it had analyzed objectively the changes in market and client needs, the advances in technology, and the company’s capabilities and market position. This could have led them to what we now know as “Cloud”. But this would have required strategic vision at a time when CSC was led by a CEO whose focus and priorities were detail, numbers, cost cutting and “this quarter’s profit”. So it did not happen.
Mike Lawrie deserves criticism for many things, but on this one he deserves credit for defusing a potential time bomb.