Industry News

HP Enterprise’s technology services to merge with CSC

Hewlett Packard Enterprise Co. (HP Enterprise) plans to merge its technology services operations with Computer Sciences Corporation (CSC),a Virginia based company. The deal is closed at $8.5 billion transaction.HP Enterprise will spin off operations that have approximately 100,000 employees. The aim of the merger is to focus closely on a narrow set of business or operations.

After the merge, HP Enterprise strategy is to focus on software, networking, server systems and storage hardware. The company is planning to focus more on hardware sales across the globe.

TechSci Research analyses that the merger is the result of on-going hyper-competition in cloud computing market globally. As the cloud computing dynamics is changing globally, customers are opting for cloud computing and shedding off the methods of traditional data centers and developing the private cloud infrastructure -which is targeted by HP Enterprise as it specialises in providing hardware and server systems.

TechSci Research, a global consulting and market research firm closely analyse the development in the cloud computing market worldwide and has recently published a report on India cloud computing market; as India is one of the key geographies for cloud computing players for HP, Dell, IBM, Cisco and so on.  According to a recent report published by TechSci Research, “India Cloud Computing Market Forecast & Opportunities, 2020”, the market for cloud computing services in India is projected to grow at a CAGR of over 22% during 2015-2020. Increased government spending on National Optical Fibre Network (NOFN) and various e-governance portals, coupled with growing acceptance of cloud services in SME segment is expected to drive the market for cloud computing. SaaS is set to top the charts as the largest cloud service segment, occupying over 40% share in the market by 2020. However, cloud services are likely to face stiff challenges pertaining to data security, vendor lock-in period and less availability of quality IT hardware infrastructure in semi-urban regions across the country.

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