Scale, reach, portfolio for 21st century
Rachael Stormonth, executive vice president of analyst group Nelson Hall, was upbeat about the fresh proposition that DXC offers, born of the evolutionary pains of CSC and Enterprise Services. “DXC has scale, it has global reach,” she said. The creation of a new IT services company – “the largest in my career” – is about more than scale though, she pointed out. “Both CSC and HPE ES have emerged leaner and fitter from their own broad-based turnarounds.”
Their respective evolutions reflected the market shift from a traditional asset-intensive outsourcing deals base, stripped-out costs, addressed problem contracts and rationalized portfolios, adapting them to cater for 21st century business requirements. “Both have a refreshed sales force – both have been through a break up and done the tidying up of structures and systems this demands. Both are leaner and fitter as a result.”
Satya Nadella, CEO of Microsoft – itself a premier partner of DXC – summed up the prevailing sentiment when he congratulated the DXC team on the successful formation of the IT services super giant. “At Microsoft our mission is to empower every person and organization on the planet to achieve more. Pursuing our mission means forging strong relationships with leading partners such as DXC,” he stated in a welcome video posted on YouTube.
“Clients are already seeing benefits of this partnership, particularly with DXC’s managed services in industrial machine learning solutions built on Azure, providing real-time insights with advanced learning capabilities,” he continued. In addition, DXC is building industry solutions in healthcare, insurance and retail, for example, on Azure Office 365 and Dynamics 365. This provides the broadest platform for productivity, collaboration and business process on global trusted hybrid cloud infrastructure, while meeting regulatory requirements, Nadella added.
Partner confidence in digital scale of DXC
Another tier one partner, Amazon Web Services (AWS), was similarly upbeat. “We’ve built a strong foundation of customer success with CSC over many years, based on the valuable managed services and operational support they provide many of our enterprise customers,” explained Mike Clayville, AWS vice president of worldwide commercial sales. “This expanded alliance enables DXC to immediately deliver those same enterprise-grade AWS offerings to former HPE Enterprise Services customers.”
Other voices in the services ecosystem commented that DXC – effectively a super start-up – is well-positioned through its merged capabilities and scale to deal with rapid digital change. Alex Klose, head of marketing of cloud communications software and solutions provider IMImobile, said, “This [DXC] merger heralds a new chapter for the IT services industry. It’s a rapidly evolving market, experiencing a tsunami of technological changes over recent years. There’s a real opportunity to offer a fully managed end-to-end service as companies struggle to navigate increasing complexity.”
Luxoticca praises end-to-end digitization
From an enterprise user perspective, integrating and managing the various digital facets of a rapidly expanding supply chain is a major challenge, and any new party that assists in provisioning this capability is welcome, according to Roberto Gennaccari, supply chain director at Luxottica Group. “The merger between the HPE Enterprise Services and CSC is a good way to keep the business of digitalization – something that each company nowadays is facing as a ‘must-do’ – seamless and without fragmentation,” he remarked.
“A customer can potentially deal with a single entity (DXC) in the building of the infrastructure, the offer of the software/cloud solution, the experience specific for the market in which the client operates (financial service, hospital, industries, commerce),” added Gennaccari. The icing on the cake is for a services provider to supply the necessary coaching and training as well as implementation. “[DXC] definitely has a big repository of knowledge and experience and skills.”
User-centricity praised, personalization desired
Prashanth Elangovan (@Prashanth3591), system administrator at RSA, echoed Gennaccari’s approval of the prospect of provisioning for the end-to-end scenario: “We believe DXC would offer solutions to clients from all standpoints (cloud, analytics, etc.), which will improve their legacy infrastructure and help transfer to a user-centric digital workspace – will take time to see how clients benefit from this merger! We’re hoping for the best!”
It’s worth noting, however, that Gennaccari’s endorsement came with a word of warning to all IT service providers: there’s a danger that the dominant players may try to impose a standardized solution on the market. “In the long run this could limit a client’s competitive advantage. In future digitalization, the key point is that a solution should be able to enhance a customer’s competitive position, not limit it through a standardization of services available to the entire market.”
Employee excitement at the power of 170k brains
Peppering Twitter, LinkedIn and Facebook throughout the day were tweets and memes from new DXC employees, who were savouring the potential of their combined brainpower and digital technologies. As Chanchal Verma (@chanchalverma06) summed up: “170K brains feel excited today!!… It’s not about ideas. It’s about making ideas happen!” While Paul Colmer, (@MusicComposer1) , enterprise architect at DXC, enthused: “Opportunities everywhere for everyone: growth, mentoring, fun and being recognized as a world class leader in IT Services.”
Employees from every continent posted on the #HelloDXC and #DXC hashtags, and tweets included flash mobs and videos of celebrations in black and white, the new DXC brand colours. Personnel, including Jim B. Glenn (@jimbglenn), software developer manager at DXC, were explicit about their goals: “To continue to build awesome solutions with a great expanding team for a larger customer base.” Lisa Braun (@LisaAnneBraun), communications and writing principal at DXC tweeted the company’s new mantra: ‘Thrive on change’.
@BVEx_DXC Increased synergies with SDDC & App architectures will be the obvious outcome. I also think DXC = Architectures + Cloud Mgmt + Development
— CloudMakerBrian (@CloudMakerBrian) April 3, 2017
Industry spectator Brian Senior (@CloudMakerBrian), global solution architect at VMware, stated his hope for increased synergies: “SDDC [software-defined data centres] and app architectures will be the obvious outcome. I also think DXC equals architecture s and cloud management and development,” while Steve Prentice (@StevenPrentice), tech keynote speaker, writer and author, expressed a broader ambition for the newly merged company. His words are a fitting conclusion to our crowdsourced piece on the new DXC.
@BVEx_DXC 3 of 3-Management must open the doors of communication wide, internally and with customers. They must listen as well as speak. #DXC
— Steven M. Prentice (@StevenPrentice) April 3, 2017
“Mergers allow for cross-pollination of ideas – essential in this economy. New teams, new ideas. Keep the communication flowing, allow some time, and remember Bruce Tuckman’s model: forming–storming–norming–performing. Management must open the doors of communication wide, internally and with customers. They must listen as well as speak.”
Please share your own thoughts and expectations for the new DXC on the BVEx community LinkedIn thread.
Author: Helen Beckett
Helen Beckett is the Community Manager of the Business Value Exchange. She has been a writer and editor for over 20 years and takes a particular interest in the challenges facing the CIO in today’s business climate.