Hewlett Packard Enterprise to spin of Enterprise Services BU adn Merge is with CSC.


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Hewlett Packard Enterprise Announces Plans for Tax-Free Spin-Off and Merger of Enterprise Services Business With CSC

 

Announced just before it's Q2 results call, Hewlett Packard Enterprise (HPE) is going to spin off its low margin Enterprise Services (ES) business unit, the currently provides managed IT services to companies.

It will be spun off and merged with Computer Sciences Corp (CSC) to create a new company currently known only as SpinCo.

 

HPE will own half of the new company, HPE CEO Meg Whitman will be on the new company's board and current ES head Mike Nefkens will join new company's executive team.  HPE and CSC will each nominate half of the board members. CSC's current CEO, Mike Lawrie, will become CEO of the new company.

 

"The 'spin-merger' of HPE's Enterprise Services unit with CSC is the right next step for HPE and our customers," said Meg Whitman, president and chief executive officer of Hewlett Packard Enterprise. "Enterprise Services' customers will benefit from a stronger, more versatile services business, better able to innovate and adapt to an ever-changing technology landscape."

 

The transaction is expected to be completed by March 31, 2017.

 

The remaining HPE will continue to sell servers, storage, and network gear, along with it's consulting services, with annual revenue of around $33 billion.

 

Source: https://www.hpe.com/us/en/newsroom/news-archive/press-release/2016/05/2062989-hewlett-packard-enterprise-announces-plans-for-tax-free-spin-off-and-merger-of-enterprise-services-business-with-csc.html

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Heard about this last night and was discussing with a friend. Ballsy move, but the new company will become the biggest managed services provider. 

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If csc is http://www.csc.com, then I used to work for them through a contracting company. They were the WORST company ever. I threw CSC under the bus when I left because of how crap they were. They hired people that had ZERO business being in charge of an IT division. My boss took on projects that we had no experience or knowledge in. He closed down a data center, and hired 60% of the IT guys to the local one, which screwed with everyone. Absolutely a horrible company to work for.

 

I work for another now, and it's equally as bad. I'm looking for a different employer when I finish my certifications.

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1 minute ago, BinaryData said:

If csc is http://www.csc.com, then I used to work for them through a contracting company. They were the WORST company ever. I threw CSC under the bus when I left because of how crap they were. They hired people that had ZERO business being in charge of an IT division. My boss took on projects that we had no experience or knowledge in. He closed down a data center, and hired 60% of the IT guys to the local one, which screwed with everyone. Absolutely a horrible company to work for.

 

I work for another now, and it's equally as bad. I'm looking for a different employer when I finish my certifications.

The one and the same, they've been through massive changes over the 5 years, pretty much since Lawrie took over, they trimmed off a lot of the fat (middle managers). They're by no means perfect, but a lot better than a few years back.

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10 minutes ago, dipsylalapo said:

The one and the same, they've been through massive changes over the 5 years, pretty much since Lawrie took over, they trimmed off a lot of the fat (middle managers). They're by no means perfect, but a lot better than a few years back.

Dunno about that. They hired my boss who managed to screw up an entire school district network. He has absolutely no right to step inside a data hall or touch an electronic device. They hired him based on lies and experience from the 80s and 90s. They offered me a job there recently as a Level 1 Network Tech, they offered me a $15,000  raise on top of what I'm making now, which is about $52k / year. I told them to go to hell. Wasn't worth my time or my effort, and the fact that they offered ME a job, says a lot about how desperate they are. Not to mention, when I left, others did too. They went from a 8 man team in Phoenix to 4. It was great watching my former boss turn pasty white. They hired two people, both are former security guards, one has a degree in law, no it experience other than what he can Google. The other actually has her bachelor's in IT, but they wouldn't hire her at first because she's a woman. Wasn't until I busted his balls about it, to his church mate of his. Sorry for the rant, I hate CSC with a passion.

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1 minute ago, BinaryData said:

Dunno about that. They hired my boss who managed to screw up an entire school district network. He has absolutely no right to step inside a data hall or touch an electronic device. They hired him based on lies and experience from the 80s and 90s. They offered me a job there recently as a Level 1 Network Tech, they offered me a $15,000  raise on top of what I'm making now, which is about $52k / year. I told them to go to hell. Wasn't worth my time or my effort, and the fact that they offered ME a job, says a lot about how desperate they are. Not to mention, when I left, others did too. They went from a 8 man team in Phoenix to 4. It was great watching my former boss turn pasty white. They hired two people, both are former security guards, one has a degree in law, no it experience other than what he can Google. The other actually has her bachelor's in IT, but they wouldn't hire her at first because she's a woman. Wasn't until I busted his balls about it, to his church mate of his. Sorry for the rant, I hate CSC with a passion.

Haha I can tell, maybe it's the UK and US businesses are different. 

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Just now, dipsylalapo said:

Haha I can tell, maybe it's the UK and US businesses are different. 

I believe they are sub-sections. CSC split awhile back. Public/Private, essentially anything non-government contracted is private, while public is everything else. Then it's split by location, from all the people I've worked with, the UK guys were probably the nicest. Though, one did tell me I'd better shut my pork hole before he pours hot tea and shoves a crumpet down my throat. I did deserve it, I said only ###### drink tea, real men drink coffee.

 

It was amusing being on calls with them.

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Seconding BinaryData's view on CSC

 

I worked on a project with a customer in which CSC managed the customers IT infastructure and help desk etc - OMG they were terrible. I cannot count how many times we'd have to repeat "can you do XYZ..." to them and have them do it wrong or not even bother at all.

 

I remember having an issue with the laptop they provided me for remote access and it took them days to resolve it.

 

@philcruicks I assume you're under the consulting side so you'll stay on the side that knows what they're doing?

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Hah seems to be that I'm the only person that's had positive experience with them :p Don't get me wrong they're not perfect, but I'm yet to find a company/firm that is, they do have some great people working for them.

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2 hours ago, Skiver said:

Seconding BinaryData's view on CSC

 

I worked on a project with a customer in which CSC managed the customers IT infastructure and help desk etc - OMG they were terrible. I cannot count how many times we'd have to repeat "can you do XYZ..." to them and have them do it wrong or not even bother at all.

 

I remember having an issue with the laptop they provided me for remote access and it took them days to resolve it.

 

@philcruicks I assume you're under the consulting side so you'll stay on the side that knows what they're doing?

I am indeed on the consulting side that actually know what they're doing haha :rofl: (so to cover my self all comments are my own personal opinions).

 

Interesting thing for us in consulting will be that we currently do a fair bit of work though ES, as well as our own projects with our own customers, so will be interesting to see how that dynamic changes (my current project is one through ES).

 

All in all I'm pleased with the move, splitting to HPE and HP Inc last year you can already see the renewed focus in the business, and ES has always been a bit odd, some left over ideals and attitudes from when it was EDS, and I've never felt ES fully integrated into HP/HPE, though the restructuring over the last few years has seemed to improve them a lot.

 

But probably a good move for them as well, should enable both companies to be far more focused on what they want.

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57 minutes ago, philcruicks said:

I am indeed on the consulting side that actually know what they're doing haha :rofl: (so to cover my self all comments are my own personal opinions).

 

Interesting thing for us in consulting will be that we currently do a fair bit of work though ES, as well as our own projects with our own customers, so will be interesting to see how that dynamic changes (my current project is one through ES).

 

All in all I'm pleased with the move, splitting to HPE and HP Inc last year you can already see the renewed focus in the business, and ES has always been a bit odd, some left over ideals and attitudes from when it was EDS, and I've never felt ES fully integrated into HP/HPE, though the restructuring over the last few years has seemed to improve them a lot.

 

But probably a good move for them as well, should enable both companies to be far more focused on what they want.

I work in a DC, we've cycled almost all our HP products out for Dell stuff. Dunno why, HP can be a lot better at times, more umpf for space.

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6 minutes ago, BinaryData said:

I work in a DC, we've cycled almost all our HP products out for Dell stuff. Dunno why, HP can be a lot better at times, more umpf for space.

We've pretty much done the exact opposite - Dell Laptops and Servers are now making way for HP Laptops and Servers :)

 

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Just now, Skiver said:

We've pretty much done the exact opposite - Dell Laptops and Servers are now making way for HP Laptops and Servers :)

 

We use Lenovo Laptops that are SO outdated that modern HW doesn't work with it. We got these new docks for work. They only work for T431 and up. Ours are all T430s. I looked at my boss and was like "Did you even bother to research this or did you just buy it?" He went silent and back to his office. :p

 

We've speculated that the reason why we switched, is because someone up is on the board for Dell, and we got a cheap deal. Only explanation.

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