According to report of Teskostudio in the business community, best IT services in Toronto and products company Hewlett Packard Enterprise Co said it would merge its struggling IT services business with computer science Corp. This they stated was for the sake of focusing on developing their cloud based services and other better performing areas. The whole situation where a company like HP would take on merging its It services with computer science was a strategic decision. The prevailing situation is how this will inevitably affect businesses of both in days to come?
Well for starters the giant Silicon valley IT company has had immense success over the last couple of decades in developing systems and service across the whole IT sector. But with recent assessment of matters has shown that some of their IT services division are a hindrance to growth due to the redundant nature, hence management has taken a bold step to slim down for a more thimble company.
The merger of HP Enterprise Co to Computer Science Inc. is worth $8.5 billion for stake holders of the two companies. The main aim is to help drive focus of HPE in delivering better corporate computers and software and hiving off billions of assets that may yet prove useful to computer Sciences.
But despite all these efforts more need to be done to ensure the success of the merger on all fronts. These includes management reshaping the business aspect of HPE to boot growth and rival competition from growing IT new comers. Its business in Cloud services is proving especially lucrative and if it want to stay ahead of the pack especially from rival Amazon.com it needs to refocus it attentions.
The merger includes CSC leaving the information technology outsourcing business creating space for HP. In turn CSC will concentrate on developing and selling hardware from servers, hard disks to networking cabling solutions and technologies. Furthermore it needs to become more pronounced in developing specific software since they rake in better returns. Through the deal HP will save at least a billion in cost from operations in these divisions.
All this comes in the backdrop of HPE decision to take on more IT services solutions after purchase of Electronic Data systems back in 2008. When the new divisions continued to underperform and produce lack lustre results HPE took radical steps to resolve the situation. Here it is about eight years later and while there have made a neat turn around consequences of the purchase have led to the meagre with CSC. That with this merger they can consequently grow other key sectors of their business.
According to Meg Whitman, HPE CEO, the move is aimed a benefiting their customer from better and versatile service business to a much stronger and more adoptive company. The two companies recognise there abilities to help each other grow despite the immense and considerable share of the pie in the IT sector globally. With A better, versatile and global technology business, both companies intend to spring board to position themselves as innovative, competitive and adaptive to ever changing IT sector landscape.