Monday, 23 May 2016

Why there is not much to say about CSC

News about CSC is thin on the ground and what there is is just replays of what went before. That is why we are not writing much about events there. We do note that with yet more news of staff reductions the addiction to slimming down continues. It seems that CSC is anorexic and needs some psychological support.

If anyone watches the Sopranos they will know that previous episodes are always worth watching without having to start the series again at Episode One. With that in mind here is Cassandra Greatest Hits Volume 1. 


A new model - again

"History repeats itself, First as Tragedy, Second as Farce."


Anonymous said...

This is like a trailer for a new blockbuster moving.

The Rise And Fall Of The CSC Empire

Looking towards next installment.

Anonymous said...

Theres a freeze on any sort of rises, they only do falls

Anonymous said...

Change the headings and blog description to include CSC news. There are search optimisation teams to ensure your blog will never be on the first page.

Anonymous said...

Csc hp merge

Anonymous said...

Don't worry though, Mikey is still in charge and he's now got a bigger pot to cull from.

Anonymous said...

More redundancies.. mikey will fit in well

Anonymous said...

A billion in saving.. so now hr accounts sales legal vendor relationship... all in the meat grinder. I reckon just before xmas people will be flying.. I mean pushed out the door. How depressibg for csc and hp employees alike

Anonymous said...

Whitman and Lawrie - how do they sleep at night? They really are scum.

Anonymous said...

"The 50/50 control of the new entity, split evenly between HPE and CSC, was another cause for concern. “It’s always going to be run by a committee,” Enderle said. Mike Lawrie, head of CSC, will be chairman, president and CEO of the new company.

The proposed spinoff may look good short-term for investors, who will also get a $1.5 billion dividend payout as part of the tax-free combination. But the complex structure of the spinoff/merger, also referred to as a Reverse Morris Trust, is evidence that it is the financial engineers — not the computer engineers — who are running this half of the old HP. But financial wizardry is not the road to long-term growth."


More cash for Wall Street, so they won't complain.

Its a bit like one of those toxic banks... a vehicle for lay offs and destruction of families only, not an actual functioning company.

With a revenue of "26 billion dollars" it sounds like CSC is the minnow in that pond too. I am guessing but I'd imagine about 40% of HPE's 240,000 employees will be coming over and fed into Mikey's hand cranked meat grinder - about 96k employees to add to CSC's about 70k.

Shall we have a sweepstake on the new company name? CSC-HPE or HPE-CSC or maybe just "Satan ate my career"

Anonymous said...

That's really funny. I laughed until I cried. Then I just cried....

Anonymous said...

Good luck to them all. They need it.

I doubt a coincidence.

Anonymous said...

don't look at the ordinary results - look over here at the miraculous deals we are making with IT market lossleaders - brilliant misdirection if ever there was.

Anonymous said...

Read the last comment, possibly 65000 roles to go and two bad companies don't make one good one.

Anonymous said...


CSC to merge with Hewlett Packard Enterprise

The announcement of CSC’s Q4 FY16 results were overshadowed by the announcement of the company’s merger with the Enterprise Services segment of Hewlett Packard Enterprise.
Here are the headlines from the CSC news release:
• CSC and the Enterprise Services segment of Hewlett Packard Enterprise (HPE) to create leading pure-play global IT services company, uniquely positioned to lead clients on their digital transformations;
• New company expected to have annual revenues of $26 billion and more than 5,000 clients in 70 countries, covering every major global region;
• Combined company expected to produce first-year synergies of approximately $1 billion post-close, with a run rate of $1.5 billion by the end of year one;
• CSC and HPE shareholders each will own approximately 50 percent of shares in the new company;
• Agreements between HPE and the new company to ensure ongoing beneficial relationship; and
• Mike Lawrie to become chairman, president and CEO of combined company; Meg Whitman to join the new company’s board; board appointments will be split equally between nominees of HPE and CSC.

How much of a surprise is this? Not as much as it would have been three or four years ago! Neither HPE nor CSC are the powerhouses they used to be, and it was difficult to see how either of them was going to turn things around as more agile and focused competitors overtook them.

The news releases about the merger refer to growth, benefits for customers, world-class capabilities, technology leadership , innovation and so on. However, neither company has a stellar record in getting real value out of its acquisitions; does anybody remember what happened to EDS, which is what HP Enterprise Services is based upon? And this merger is going to be tricky for the new company to keep the best talent from both sides of the house.

We shall wait and see how the merger planning plays out, but with Mike Lawrie as its helm, we fear that there will be far more focus on restructuring and cost cutting than on building. How long will it take for Mr Lawrie to drive the revenue level from US$26billion to US$20 billion? Especially as CSC and HPE’s competitors have just been given 10 months to attack them while the CSC/HPE management are too pre-occupied with their positions, remunerations and stock options in the new company to worry about today’s customers and staff!

By the way, CSC’s Q4 FY16 results were pretty much as expected! Revenue showed a Year-on-Year decline of almost 6% while Earnings per Share of US$0.73 beat Analyst estimates by US$0.05.

Anonymous said...

Always thought CSC + UXC should be called SUX so how about HESUX?

Anonymous said...

I think you'll find they sleep well, people with a lack of empathy always do.
One of the rumors is that Lawrie will do a year or so as CEO of the new organization where he can be the hatchet-man to achieve the $1.5 billion cost savings then will hand over to Mike Nefkens.

Anonymous said...

Knowing how CSC operates, the Executive Management (aka Oxygen Thieves) will start laying off Revenue Generating staff in even greater numbers and employ more non-revenue generating management to try and manage the inexplicable increase in major Service level failures. Soon it will be a company with a 1000+ to 1 ratio of Management to workers.

To slightly paraphrase from The Hitchhikers Guide to the Universe by the late great Douglas Adams: The Executive Management of the Computer Sciences Corporation are "a bunch of mindless jerks who'll be the first against the wall when the revolution comes,”.

Sorry, I should not have said Computer Sciences Corporation, we were after all explicitly instructed by upper management a number of years ago to use "CSC" as "CSC no longer stands for anything".

Me, I describe modern executive management as simply like locusts. They travel from company to company, or move from line of service to line of service, ravaging everything they touch simply to get their bonus. They do this without any regard for the consequents to the company, the employees, the "market" or the clients. And they quickly move on before the whole house of cards comes tumbling down and before having to take on any accountability. (Or they just merge with another company before both them come tumbling down.)

Anonymous said...

If you read the transcript of the FY end analysts call there is some interesting stuff in the questions piece:

HPE has a large number of Federal contracts - in fact many say that the one place they were successful was Federal. CSC of course have just binned NPS to CSRA and in doing so presumably agreed not to return to Fed...

Of course all of us who know and love Mikey could easily imagine that just being ignored.... on the other hand, splitting off a large chunk of HPE before you even start - I noted the analyst didn't ask just how much of the $18 billion was Fed...

Anonymous said...

no-compete clauses between CSC and CSGov.
Values the HPE fed unit at $3bn, so approx 16% of HPE $18bn

Anonymous said...

I'll grant it to him: Lawrie is either a genius or incredibly lucky.

There is no juice left to suck from CSC, so now he's got HPE.

The strategy is simple: Outsourcing business - multiyear contracts, hard for customers to get out from. Reduce headcount/cost. Reinvest savings into: 1) buying your own stock, 2) dividends 3) small acquisitions to create marketing hype.

Stock stay high, shareholders happy, Mike is happy.

Once the all juice has been squeezed from HPE, IBM is the next target.

Anonymous said...

Happy I left that place... It's just another cash cow for upper management to bleed dry. And it's only a matter of time, before either it's sold.. or Mikey leaves and someone will save it.. but for now.. CSC is loosing ground. But the stock holders are happy...