Posted on 06/13/2016 7:37:21 AM PDT by Cronos
Hewlett Packard Enterprise Co. plans to spin off most of its technology services operations and merge them with those of Computer Sciences Corp., in an $8.5 billion transaction that marks HP Enterprise’s latest adjustment to a shifting landscape that is roiling the market for corporate technology.
HP Enterprise will shed a business that accounts for roughly 100,000 employees, or two-thirds of the Silicon Valley giant’s workforce.
The deal, a blockbuster follow-up to the breakup of Hewlett-Packard Co. last fall, will create a corporate technology services specialist that will be led by Computer Sciences executives and have roughly $26 billion in annual revenue, the companies said. The remaining HP Enterprise operations will concentrate mainly on software, server systems, networking and storage hardware.
The move is evidence of ongoing turmoil in the corporate computing market as business spending tightens and traditional data centers give way to cloud computing. HP Enterprise faces increasing competition from cloud-computing vendors including Amazon.com Inc. and Microsoft Corp. that sell metered access to raw computing power over the Internet. Customers must decide whether to opt for cloud services, maintain conventional data centers, or build their own private cloud-like facilities—a business especially targeted by HP Enterprise.
..The combined spinoff and merger, which will focus HP Enterprise more tightly on hardware sales, represents a doubling down by Chief Executive Meg Whitman on a breakup approach to the shifting landscape in contrast to the merger strategy taken by Dell Inc. and EMC Corp.
(Excerpt) Read more at wsj.com ...
This is due to the increasing move to the cloud with public, private or hybrid clouds. There is less need for integrators or upgrades when you have SOAP all over the place.
My buddy works for HP.
He was sent to Vietnam on business for them.
He was warned not to leave the hotel at night.
He left the hotel at night.
Hijinks ensued, but not good hijinks, and he had to buy his way out of trouble for several hundred dollars.
Life changes for 100,000 employees....that will leave a skidmark on the economy.
An analogy I’ve seen is that manufacturing facilities used to all have their own power plants. Early on, they’d run systems of pulleys and belts to power equipment. Later, they’d be local electrical power plants to run the electric motors making things happen on the plant floor.
As time went by, central station power plants became more efficient economically, and manufacturers dropping having their own local electrical power plants at their factories.
Similarly, central computing resources (”the cloud”) are getting to the point where it works, due to higher network availability/reliability and cheaper costs for the raw computing power managed centrally.
The middle-skilled ones (60% to 80% of the job market) will die out. Scary
Sounds like they are basically selling/dumping EDS.
Yup. I spent about 30 years at EDS; thankfully all but a few months were during the pre-HP days. My friends that are still there are glad for the employment, but it sure isn't the company it used to be.
#2 Did he pick up any women? Does he scratch himself constantly now? : )
Here is a link to the same story. I do not subscribed to WSJ so had to do a search.
http://www.usatoday.com/story/tech/2016/05/24/hpe-announces-spin-off-enterprise-services-business/84710052/
Silicon valley is gonna have a few more unemployed people after this.
Sounds like something straight out of a Warren Zevon song.
I have a few overarching and all-encompassing rules to guide my life.
The one I got from my friends’ experience is “Never try to buy pot from a guy on scooter in an oppressive communist country, and if you do, don’t actually GET ON THE SCOOTER AND GO WITH HIM”.
I live in Vietnam. I assume your buddy went out, got drunk, and managed to put himself in a compromising position that required payment to remedy. But come to think of it, nothing should require a few hundred dollar payment—so I assume a police officer assumed (correctly, it seems) that your buddy was a chump and could be milked for a significant markup over the typical fee. Tell your buddy to work on his negotiation skills!
My buddy wanted pot. A guy on a scooter pulls up in front of hotel and says “I can get pot. Hop on, friend!”
Scooter takes buddy to bad part of town. Buddy was told to wait in a room for the pot. “In the meantime, listen to this here music” scooter guy says.
My buddy is not interested in the karaoke, but OK, he says.
“Pot not here yet. Observe the dancing girls!” the scooter guy says as 2 girls enter room and begin to dance. By buddy is not into the girls. He just wants pot and is getting antsy.
“Hungry? enjoy our great food!” the scooter guy says.
An hour has elapsed and still no pot. My buddy decides it is time to go, but is informed that before he is allowed to leave he must pay for the music, the food, and the prostitutes. $400 will cover it.
He now notices several very large men in the doorway. Vietnamese muscle!
My buddy is scared. He has no idea where he is, only that he crossed “several bridges” while on the back of the scooter, and he is in an impoverished section of town several miles from his hotel.
He makes a deal w/ scooter guy: My buddy will give him $100, scooter guy takes him back to hotel, and my buddy will get the remainder of his “bill” from his hotel room and pay then.
And that is exactly what happened.
No police were involved that night!
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