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Central gov spent £6.3bn on IT. Nearly half handed to just 3 suppliers

Central government splashed £6.3bn with IT suppliers for the year 2014/15 – with 42 per cent going to just three suppliers, according to government data shared with The Register. Sixty-five per cent of the total figure was hoovered up by 10 suppliers, with HP coming top at £1.2bn, followed by Capgemini at £861m, and BT at £ …
Kat Hall, 29 Apr 2016

Security market to exceed $170 billion by 2020, analysts say

The information security market will hit US$170 billion (£120 billion, AU$227 billion) by 2020, a growth projection of some US$100 billion (£70 billion, A$134 billion) from current figures according to analyst firms. India-based firm MarketsandMarkets says the 2020 total includes security technologies like data leak prevention …
Darren Pauli, 10 Mar 2016
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Accenture leans back, receives £86m Met Police contract

The Metropolitan Police has inked a £86m deal with Accenture to manage its applications, the latest contract award in the force's plan to shave £200m from its IT budget over the next three years by carving up its existing Capgemini contract. The deal will last for five years, with the option of a three year extension. The …
Kat Hall, 08 Mar 2016
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Met Police hands £250m to CSC in IT outsourcing carve-up

The Met Police has handed £250m in contracts to CSC, part of its potentially risky plan to carve up large chunks of its IT in the hope that outsourcers can do a better job. The contracts are for a £155m end user computing deal to provide managed desktop services, storage over the next five years; and a £95m hosting deal to …
Kat Hall, 24 Feb 2016
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CSC boss Gossain is now an ex-exec

CSC UK chief Sanjiv Gossain has joined the not-so-selective club of ex-execs, leaving the ailing integrator less than two years into his tenure. In a wonderful blurt of business-speak, CSC sent us a statement on his departure, confirming Gossain is leaving to “pursue other opportunities as he transitions to the next chapter of …
Paul Kunert, 01 Feb 2016

CSC beats off Capita, snaps up Xchanging for £480m

Computer Sciences Corporation is to snap up business processing outfit Xchanging for £480m, having beaten off its rival suitor Capita. The move appears to be part of plans to split CSC into two publicly traded companies: one for commercial and government clients globally and one to serve public sector clients in the US. Mike …
Kat Hall, 09 Dec 2015
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NHS IT projects worth £5bn at 'high risk' of failure, warns HSCIC

The NHS currently has £5bn in IT projects deemed at “high risk of failure”, according to the latest board minutes from the Health & Social Care Information Centre. The ratings (PDF) are based on gateway reports assessing the risk of four IT projects this year. All are related as “red” or “amber/red” meaning successful …
Kat Hall, 08 Dec 2015
hands waving dollar bills in the air

Capita holds out for Xchanging, extends offer for a second time

Outsourcing giant Capita has extended the window by two weeks for business processing outfit Xchanging's investors to accept its £412m offer for the outfit. The outsourcer had originally slapped 160 pence per share on the table to tempt investors by 30 November. However, two weeks ago rival CSC offered a 170-pence-per-share …
Kat Hall, 01 Dec 2015
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CSC trumps Capita bid for Xchanging by a whole 10 pence

CSC has confirmed it has thrown its hat into the very small ring of firms bidding to take over Xchanging, offering six per cent more than rival bidder Capita. Capita was left the only bidder for Xchanging earlier this month, when private equity outfit Apollo upped and left the negotiating table. Capita’s 160p per share offer …
Joe Fay, 13 Nov 2015
HP Logo splitting in two

The $53bn 'startup': Hewlett Packard Enterprise begins life

The UK country chief of $53bn “startup” Hewlett Packard Enterprise might have had a number of concerns on his mind this morning but retail stock levels or a huge separation task weren’t among them. For HP, the grand old lady of Silicon Valley, has split in two a year after going public about plans to hive off the PC and print …
Paul Kunert, 02 Nov 2015
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CSC beefs up public sector biz with $390m merger deal

Soon-to-be split CSC is merging its government services biz with US public sector IT outfit SRA for $390m (£254m). The acquisition will add around $1.4bn (£911m) in revenue and 5,000 staff to CSC's public-sector outfit, creating combined annual sales of $5.5bn (£3.6bn) and a workforce of nearly 19,000 employees. Mike Lawrie, …
Kat Hall, 01 Sep 2015

Outsourcing tanker CSC sales growth torpedoed

Leaky outsourcing tanker CSC saw sales growth drift off on the horizon for yet another quarter – the first of its fiscal 2016 – but the services slinger is back in the black, without the help of tax benefits. The fact CSC slashed costs and expenses by nearly half a billion dollars had nothing to do with bottom line beefiness, …
Paul Kunert, 12 Aug 2015

NetApp sees IBM/Cisco VersaStack as 'huge' threat to FlexPod

NetApp has inadvertently leaked competitive intelligence documents to a community newsfeed, and the contents reveal it worries that IBM and Cisco's VersaStack will threaten its FlexPod business and that SolidFire has emerged as a threat. Several documents penned by the “NetApp Competitive Advantage Team” have reached a public …
Simon Sharwood, 30 Jul 2015
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

CSC insiders: 800 job cuts will hit service delivery for punters

CSC is pressing ahead with plans to axe hundreds of workers, brushing aside concerns from some employees that customers are already feeling the pinch of past cost cutting actions. In what has become an annual ritual for CSC, almost 800 employees were put at risk of redundancy in May, with their roles earmarked to be sent to …
Paul Kunert, 23 Jun 2015

UK NHS IT supplier CSC coughs up $190m fine, three execs in the dock

Computer Science Corporation has paid its $190m (£122m) fine, levied by US watchdog the Securities and Exchange Commission over charges the Virginia-headquartered biz fudged its financial reports. And now some senior executives have agreed to hand back millions of dollars in pay and bonuses as a result of the SEC's probings. …
Iain Thomson, 05 Jun 2015
Titanic sinking

IaaS is OVER, ladies. Time for OpenStack to jump clear

Data. Was ever such a single word filled with such promise – and heartbreak – for IT firms? In the cloud, succeeding in getting hold of people’s data means these people are incentivized through inertia to stay with you. That’s the promise, at least. The rub? Actually making a successful business from people’s data. The act of …
Gavin Clarke, 20 May 2015

CSC picks up axe, takes aim at its own profitable bits

CSC confirmed last night it is to split the US public sector biz from the rest of the group – the only division last quarter where sales aren’t dropping and which generates the highest operating profit. As expected, the hard-pressed integrator is to hive off the operation into a separately listed company, with sales of $4.1bn …
Paul Kunert, 20 May 2015
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

Unite: CSC using staffers' profitability to shape the future

The Unite union reckons some of CSC’s highest-paid Brit staff could be headed for the chopping block in the company's latest job purge, as it enters consultation with local management. The beleaguered integrator is bundling 800 workers out of the door to cut costs, with a proportion of those roles to be off- and near-shored, El …
Paul Kunert, 18 May 2015
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Splitters! CSC to break itself into pieces following job cull

The break-up craze among the largest tech vendors may have reached the channel, with talk that CSC will separate its North America government unit from the rest of the private-sector sales organisation. The split could come as early as next week, according to Reuters, when the loss-making company takes the covers off its latest …
Paul Kunert, 15 May 2015
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CSC picks up the axe yet again, eyes 800 staffers' quivering necks

Exclusive CSC is preparing to axe almost 800 staff in the UK and Ireland in what it is calling a "Get Fit" phase, with current proposals to transfer some of these positions to near-shore and offshore centres. Bloodletting is a seemingly annual custom for the scandal-hit ailing integrator. It is just over a year since CSC put 750 workers …

CSC confirms top exec suspended over Australian bank scandal

CSC has confirmed that one of its top brass – Eric Pulier – has been suspended, while it investigates allegations he gave kickbacks in the multi-million-dollar Commonwealth Bank of Australia IT contract fraud scandal. Police in the Australian state of New South Wales (NSW) recently charged a former employee of the Commonwealth …
Kat Hall, 01 Apr 2015

£100 MILLION poured down drain on failed UK.gov IT projects - in just ONE YEAR

Whitehall mandarins have wasted more than £100m on failed or cancelled IT projects in the last 12 months. That’s according to the Taxpayers’ Alliance, which has collated losses across all departments for 2013 – 2014. The Alliance uncovered £107m lost as projects were scrapped, gains weren’t realized or unnecessary costs were …
Gavin Clarke, 16 Feb 2015
Scrooge McDuck

Oracle data centre offers its back end to banking upstart

Oracle is becoming a British banking back end, with its data centres about to start holding the money and details of some of the UK’s wealthiest citizens. Hampden & Co, due to launch in the first quarter of 2015, has picked Oracle’s Flexcube as its core banking platform, the database giant said Tuesday. Unlike other Flexcube …
Gavin Clarke, 15 Jan 2015
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US tech titan CSC slapped with $190m penalty

IT giant CSC has been slapped with a $190m (£122m) penalty by US regulator the Securities and Exchange Commission following a probe into the firm's accounting practices. The investigation was opened in 2011, mainly into the firm's European outsourcing unit - including revenue from its troubled NHS contract negotiations between …
Kat Hall, 30 Dec 2014

Are CSC's mega-costly NHS contracts finally turning a profit?

CSC's troubled billion-pound NHS contracts finally appear to be turning around, chief executive Mike Lawrie revealed in a conference call. However, it is unlikely the firm will ever recoup its money from the defunct systems, which have cost the company close to £2bn. In a conference call for CSC's second quarter earnings Mike …
Kat Hall, 11 Nov 2014
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CSC set for ANOTHER re-org but no redundancies involved

Re-arranging the UK deck chairs on good ship CSC is the strategy the integrator has chosen after shelving plans to make further redundancies, according to numerous sources. The US-owned business does not generally shy away from making redundancies, axing 750 people from its Brit operation in late April and parting company with …
Paul Kunert, 10 Nov 2014

Revenue drops at IT giant CSC... 'Good progress' says chief

Revenue at CSC fell by 3.4 per cent to $3.08bn for the firm's second quarter as "transformation efforts" took hold at the IT giant. Meanwhile, operating income fell 3.3 per cent compared to the same period last year – to $340m. Half-year net income fell by $112m to $307m, compared with the first six months of 2013. Sales were …
Kat Hall, 07 Nov 2014

HDS launches compute-as-a-service in Equinix bit barns everywhere

Hitachi Data Systems (HDS) has come up with a new way to keep selling hardware in the cloud age, by creating a compute-as-a-service service that will live in Equinix's 32-nation-strong bit barn network. HDS is most often characterised as a storage vendor and has offered storage-as-a-service for some years. The company also re- …
Simon Sharwood, 27 Oct 2014

A beheading in EMC's ViPR lair? Software's big cheese to advise CEO

Analysis The head of EMC's Advanced Software Division – the man behind the storage giant's ViPR technology – has become an advisor to EMC CEO David Goulden. We'll explain why this is a big deal. Amitabh Srivastava headed EMC's Advanced Software Division (ASD) after coming over from Microsoft in 2011; we wrote about his arrival to run the …
Chris Mellor, 12 Aug 2014
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US titan CSC: Our numbers are going nowhere this year

US titan CSC – you remember, the firm that botched the £10.1bn National Programme for IT – is bleeding out slowly, with revenues dwindling and income growth stalling. The bad news for investors and staff respectively is that things are not forecast to get better any time during this fiscal year, and the company is again …
Jasper Hamill, 08 Aug 2014

Serco welcomes former CSC boss to run gov unit

Gardening leave is almost over for former CSC UK bigwig Liz Benison, who is set to rock up at Serco to run its Brit and European local and regional government division from the start of next month. As revealed by The Channel back in April, Benison was replaced at the CSC helm by ex-Cognizant veep Dr Sanjiv Gossain, at the same …
Paul Kunert, 08 Aug 2014
big droplets falling from rain cloud

Amazon's cloud reign may soon come to an end, says Gartner

The worshipers of Gartner's famed Magic Quadrant have shuffled forth from their back-office tomb clutching jeweled calculators and have proclaimed Amazon the One True Cloud, although they added that it now faces strong competition. The workers of the analyst firm announced Amazon's dominance in a new "Magic Quadrant for Cloud …
Jack Clark, 28 May 2014
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Your legacy app sniffs the cloud cauldron and retches ... time to try another recipe

The battle between Amazon Web Services, Google and Microsoft for the public cloud gets a lot of attention, but global managed services provider Dimension Data has thrown its hat into an adjacent ring with a new hybrid Windows Server cloud. DiData's service uses Microsoft's Cloud Platform and Hyper-V everywhere, which means a …
Simon Sharwood, 05 May 2014

CSC: Brits, say hi to your new UK boss – say bye to 750 coworkers

On the day stumbling US giant CSC named the latest person to sit in its UK hot seat, it also told 750 of its workers in Blighty they are at risk of redundancy, The Channel can reveal. The mega-integrator, which presided over a good chunk of the bungled £10.1bn NHS National Programme for IT, confirmed former Cognizant senior veep …
Paul Kunert, 29 Apr 2014

Big 20 cash hoovers: Slurp. Floop. Darn. Sluurrrp. Where's our public sector IT dosh?

Half of the top 20 software and IT services (SITS) suppliers to UK.gov saw their public sector biz decline last year as Cabinet Office Minister Francis Maude and his merry band of axemen waged war on the oligopoly. The names on the list collated by TechMarketView remains unchanged on a year ago but the proportion of revenues …
Paul Kunert, 21 Feb 2014
A US Army M1A1 Abrams tank heads out on a mission from Forward Operating Base MacKenzie in Iraq on October 27, 2004

Microsoft rallies channel troops: Sell, sell, sell our spanking new 'Cloud OS'

Microsoft has flexed its on-premises software expertise and armed 25 IT service providers with Redmond technology – so they can snatch back customers lured by siren calls emanating from Amazon Web Services. The new "Cloud OS Network" involves Microsoft dispersing its "Cloud OS" technology among a slew of resellers, distributors …
Jack Clark, 12 Dec 2013

Every man, woman and child in the UK paid HP £21 last year

The government spends billions of pounds on IT every year. While individual projects often make the news when investigated by auditors and select committees, the overall picture is less well-known. But it IS big business – both because of how much is spent, but also because just a few big businesses suck up very large amounts of …
SA Mathieson, 12 Nov 2013
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Microsoft CEO shortlist down to EIGHT ... appropriately enough, perhaps

Microsoft's search committee has reportedly drawn up a shortlist of eight candidates to replace Steve Ballmer. Reuters reports the list includes three internal candidates: prodigal returner Stephen Elop, former Skype leader Tony Bates and cloud and enterprise supremo Satya Nadella. The one outsider Reuters mentions as having …
Simon Sharwood, 06 Nov 2013
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CSC straddles clouds with ServiceMesh gobble

The worst thing about the cloud for users tends to be the built-in policy tools that are either very expensive or too broad in scope to fit the peculiarities of any one organization. So providers of private and public clouds have been busily buying up firms that make it easier to layer a specific set of rules and allocations …
Jack Clark, 31 Oct 2013
Houses of Parliament in night-time

MPs: This paperless health service plan isn't worth the paper it isn't written on

MPs doubt that the Health Secretary's plans to make the NHS paperless by 2018 will be on time and budget, based on Whitehall's shambolic handling of the abandoned electronic health care record system. The widely derided National Programme for IT (NPfIT) was first signed off by ministers in 2002 under the previous Labour …
Kelly Fiveash, 18 Sep 2013

HP UK boss sent down ... under (yes, he's going to Australia)

Centuries after some of Britain's less-law-abiding sorts started settling in Australia, the good folk down under are ready to welcome another Pom to their ranks. HP UK and Ireland boss Nick Wilson is set to emigrate. Staff were today told that Wilson is leaving for pastures new and from 1 November will be HP's general manager of …
Paul Kunert, 16 Sep 2013

CSC boss post-NHS IT flop, Ford CEO 'pitched' as the next Steve Ballmer

Three top Microsoft shareholders have apparently recommended the CEOs of car-maker Ford and IT giant CSC as possible replacements for chief exec Steve Ballmer - because both bosses are in the middle of trying to turn around their companies' fortunes. It's claimed the three investors want the Microsoft board to consider Ford …
Gavin Clarke, 10 Sep 2013
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Total cost of that axed NHS IT FIASCO to taxpayers: £10.1bn

The shambolic nationwide NHS patient record computer system, abandoned by Whitehall in 2011, will ultimately cost UK taxpayers a staggering £10.1bn. US-headquartered Computer Sciences Corporation (CSC), alongside UK telecoms giant BT, failed to fully implement the massive project, sparking widespread derision before the plug …
Kelly Fiveash, 22 Aug 2013

CSC enslaves Infochimps to create army of big data monkeymen

In an announcement so garbled that our Big Data Translator had to be coated in Hadoop-based lubricant to spew out some sense, analytics company Infochimps has been acquired by outsourcer-extraordinaire CSC. The data-analytics company announced it had been acquired on Tuesday alongside CSC's earnings, during which CSC reported a …
Jack Clark, 07 Aug 2013
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Hundreds of UK CSC staff face chop, told to train Indian replacements

Computer Science Corporation (CSC) workers heading for the chopping block in Britain have been asked to train their replacements in India and the Czech Republic. Some 750 staff in the UK have been threatened with redundancy under the IT giant's global workforce shakeup, and roughly 200 roles will be moved offshore. CSC - …
Paul Kunert, 02 Aug 2013
Rusty rail wagon

Network Rail axes hundreds of tech suppliers

Network Fail Rail has canned more than 260 IT suppliers after wrapping up all its tech requirements in a single framework with five hefty integrators. Places within the agreement were handed to Accenture, BAE Systems Detica, Cognizant, CSC and TCS, allowing them to bid for contracts as they are tendered. Network Rail operates …
Paul Kunert, 06 Jun 2013

No M&S vouchers for CSC staff as awards scrapped to save costs

Cash strapped CSC is scrapping the Recognising Excellence (RE) award for its top workers as it looks towards another year of austerity. The RE was based on a token system which awarded successful contenders £25, £50 or as much as £100 - those lucky staffers - which could be traded in for M&S, John Lewis and other store vouchers …
Paul Kunert, 07 Mar 2013
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Oracle, Dell, CSC, Xerox, Symantec accused of paying ZERO UK tax

Tech giants Oracle, Xerox, Dell, CSC and Symantec paid no corporate tax in the UK last year despite pocketing nearly £500m from public-sector IT contracts, it was claimed last night. According to a study undertaken by Charlie Elphicke, Conservative MP for Dover, the five US behemoths banked taxpayers' cash and had a combined UK …
Paul Kunert, 08 Jan 2013

CSC pops its cork after slashing costs faster than expected

The CEO at lumbering integrator CSC says its turnaround strategy is ahead of schedule despite a sales blemish on an otherwise improved set of fiscal Q2 numbers. Revenues for the three months ended 28 September dipped 2.8 per cent year-on-year to $3.85bn (£2.41bn) with declines posted across its three operating units. The sales …
Paul Kunert, 07 Nov 2012

Cornwall chokes on £300m local gov deal with IT kingpins

Cornwall Council has stalled a £300m ten-year deal to outsource its call centres and other IT systems to the private sector. The county's councillors voted 93-0, with seven abstentions, to put the brakes on the contract, snubbing BT and CSC which had each put in bids for the huge cash pot. The move came after 6,000 people signed …
Anna Leach, 26 Oct 2012

Opinion

Walking on water, image via Shutterstock

Chris Mellor

IDC stats reveal who's who in the backup appliance bearpit
Carry on Cleo

Gavin Clarke

Infamy, infamy, Amazon and Microsoft have all got it in for me!

Tim Anderson

Also signals stronger cross-platform tools, access to new markets

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers