Dell agreed to buy Perot Systems for $3.9 billion, undertaking its biggest purchase ever to compete with International Business Machines and Hewlett-Packard in computer services. Dell, the second-biggest maker of personal computers, offered $30 a share in cash, about 68% more than Perot’s closing price September 18. The acquisition probably will boost profit in fiscal 2012, Round Rock, Texas-based Dell said in a statement on Monday.
Chief executive officer Michael Dell is pushing into computer services as consumers and companies curb PC purchases to cope with the economic slump. Larger services units helped IBM and Hewlett-Packard withstand the recession better than Dell, whose sales slumped 22% last quarter. The new services business would have annual sales of about $8 billion.
“This significantly expands Dell’s enterprise-solutions capabilities,’’ CEO Dell said in the statement. “The acquisition makes such great sense because of the obvious ways our businesses complement each other.’’
Once the transaction is complete, Perot Systems, based in Plano, Texas, will become Dell’s services unit. The purchase price is more than twice what Dell paid last year for EqualLogic, which was the computer maker’s biggest acquisition until now.
Perot Systems jumped as much as $11.89, or 66%, to $29.80 in trading before US exchanges opened. Dell, which ranks second to Hewlett-Packard in PC sales, fell as much as 5.6% to $15.75.
The acquisition of Perot, founded by former presidential candidate H Ross Perot, mirrors Hewlett-Packard’s purchase of Electronic Data Systems for $13.2 billion last year. EDS, the world’s secondlargest computer services provider after IBM, helped Hewlett-Packard increase services revenue 93% last quarter. Sales in the PC unit fell 18%.
Dell has relied on cost reductions to help prop up profit amid the recession. The company, aiming to save $4 billion a year, has farmed out 40% of manufacturing. Still, profit dropped 23% last quarter. Perot, which sells services to industries including health care, reported an 11% drop in sales and a 3% gain in net income last quarter. The company expects to benefit from the US government’s plans for electronic health records, Peter Altabef, CEO of Perot, said in an April interview. IBM’s sales fell 13% last quarter, while Hewlett-Packard’s total revenue dropped about 2%.
The companies have benefited from long-term services contracts to maintain corporations’ computers and networks. The Perot acquisition, while not subject to a financing condition, will need government approvals and the satisfaction of other conditions, Dell said. Dell to acquire x for $3.9bn.
Agencies
Wednesday, September 23, 2009
Tuesday, September 22, 2009
Twenty seven lose job every hour in America
Despite the US economy showing indications of recovery, the global job market remains gloomy, with companies laying off at least 27 employees every hour to cut costs.
With companies continuing to reduce their headcount in their efforts to tackle the downturn, around 13,000 jobs have been slashed so far in September by some of the leading global firms most of them headquartered in the US.
Job losses of about 12,900 have been witnessed in just 20 days of this month, translating into an average of 645 people being laid off per day. In turn, the toll comes to at least 27 people losing jobs per hour.
The lay-offs are happening across almost all the sectors from pharma to software to refinery, among others.
Most of the job cuts happened in the United States, which has already seen a staggering 5,50,000 Americans filing for unemployment benefits in the first week of September.
Last week, US Federal Reserve chairman Ben Bernanke said the recession is “very likely over,” while America’s retail sales data strengthened on hopes that recovery from the economic downturn was progressing.
Bernanke, however, said that recovery would be slow and it would take time to create jobs.
September’s job cut wave was led by pharma major Eli Lilly & Company, which will slash around 5,500 jobs globally by 2011.
While in terms of numbers, diversified technology leader Danaher came next with 3,300job cuts followed by agricultural company Monsanto, which would reduce its headcount by 8% of its total workforce or about 1,800 people.
Defence major BAE Systems is also planning to cut 1,116 jobs across plants in the country and may shut down one of its facilities by the end of 2012.
Moreover, US-based computer maker Dell is eliminating 500 people while Deere & Company is reducing its workforce by 367 manufacturing employees.
Other companies which announced job cuts include — Valero Energy, which slashed the jobs of 150 employees and 100 contractors, HJ Heinz’s frozen food arm fires 65 workers in Idaho.
Agencies
With companies continuing to reduce their headcount in their efforts to tackle the downturn, around 13,000 jobs have been slashed so far in September by some of the leading global firms most of them headquartered in the US.
Job losses of about 12,900 have been witnessed in just 20 days of this month, translating into an average of 645 people being laid off per day. In turn, the toll comes to at least 27 people losing jobs per hour.
The lay-offs are happening across almost all the sectors from pharma to software to refinery, among others.
Most of the job cuts happened in the United States, which has already seen a staggering 5,50,000 Americans filing for unemployment benefits in the first week of September.
Last week, US Federal Reserve chairman Ben Bernanke said the recession is “very likely over,” while America’s retail sales data strengthened on hopes that recovery from the economic downturn was progressing.
Bernanke, however, said that recovery would be slow and it would take time to create jobs.
September’s job cut wave was led by pharma major Eli Lilly & Company, which will slash around 5,500 jobs globally by 2011.
While in terms of numbers, diversified technology leader Danaher came next with 3,300job cuts followed by agricultural company Monsanto, which would reduce its headcount by 8% of its total workforce or about 1,800 people.
Defence major BAE Systems is also planning to cut 1,116 jobs across plants in the country and may shut down one of its facilities by the end of 2012.
Moreover, US-based computer maker Dell is eliminating 500 people while Deere & Company is reducing its workforce by 367 manufacturing employees.
Other companies which announced job cuts include — Valero Energy, which slashed the jobs of 150 employees and 100 contractors, HJ Heinz’s frozen food arm fires 65 workers in Idaho.
Agencies
Saturday, September 19, 2009
500+ BPO jobs to move from Australia to India: Vodafone
Vodafone Hutchison has announced that it will be offshoring 450 call center jobs from Australia to Tasmania and India. A spokesman for Vodafone Hutchison Australia said that company would transfer an unspecified number of positions to a call centre in Mumbai and about 100 jobs to Kingston, Tasmania.
Service Stream, the company that was running Vodafone contract confirmed the telecom operator's plans to end the contract employing 450 in customer service and support roles starting in October to February. Michael Doery, Managing Director of Service Stream says that the company would try to find new roles for the affected employees, but was unlikely to accommodate them. "We're trying to do the right thing for our staff but not give them false expectations. Call centre people are unlikely to suit the other sort of work we do, which is technically-based or based on outdoor civil activities. If a company we're providing services to makes a decision to in-source call centre jobs to Tasmania and India, that's not our decision," Doery said.
The decision to transfer call center jobs out of Australia comes three months after Vodafone Australia and Hutchison 3G Australia formed a 50:50 joint venture. Speaking on the current development Nigel Dews, Australia Chief of Vodafone Hutchison said, "The opportunity to use our combined scale to enhance our customer service capabilities is an important outcome for the Vodafone Hutchison Australia merger."
Agencies
Service Stream, the company that was running Vodafone contract confirmed the telecom operator's plans to end the contract employing 450 in customer service and support roles starting in October to February. Michael Doery, Managing Director of Service Stream says that the company would try to find new roles for the affected employees, but was unlikely to accommodate them. "We're trying to do the right thing for our staff but not give them false expectations. Call centre people are unlikely to suit the other sort of work we do, which is technically-based or based on outdoor civil activities. If a company we're providing services to makes a decision to in-source call centre jobs to Tasmania and India, that's not our decision," Doery said.
The decision to transfer call center jobs out of Australia comes three months after Vodafone Australia and Hutchison 3G Australia formed a 50:50 joint venture. Speaking on the current development Nigel Dews, Australia Chief of Vodafone Hutchison said, "The opportunity to use our combined scale to enhance our customer service capabilities is an important outcome for the Vodafone Hutchison Australia merger."
Agencies
$2 tn in revenues for green businesses by 2020
Global revenues from climate-related businesses such as energy efficiency rose by 75% in 2008 to $530 billion and could exceed $2 trillion by 2020, HSBC Global Research estimated.
In the 2006 Stern Review on the economics of climate change, climate-related revenues were forecast to climb to $500 billion by 2050. “We can see that this seemingly huge figure has already been surpassed well ahead of time as more and more businesses adapt their business model,” said Joaquim de Lima, global head of quant research for equities at HSBC.
The climate sector has surpassed the size of the global aerospace or defence industry, with the United States, Japan, France, Germany and Spain accounting for 76% of global climate revenues, the report found. For revenues to rise to $2 trillion, the way energy is generated and used needs to change and continued government support is needed.
The four core investment pillars will be low-carbon energy production, energy efficiency, control of water, waste and pollution and climate finance, the report said. Energy efficiency recorded the highest investment returns in the year to date at 30%.
“This is a very significant trend given the substantial share of climate stimulus funds that have been directed at energy efficiency and energy management by governments across the globe,” HSBC analysts said.
Agencies
In the 2006 Stern Review on the economics of climate change, climate-related revenues were forecast to climb to $500 billion by 2050. “We can see that this seemingly huge figure has already been surpassed well ahead of time as more and more businesses adapt their business model,” said Joaquim de Lima, global head of quant research for equities at HSBC.
The climate sector has surpassed the size of the global aerospace or defence industry, with the United States, Japan, France, Germany and Spain accounting for 76% of global climate revenues, the report found. For revenues to rise to $2 trillion, the way energy is generated and used needs to change and continued government support is needed.
The four core investment pillars will be low-carbon energy production, energy efficiency, control of water, waste and pollution and climate finance, the report said. Energy efficiency recorded the highest investment returns in the year to date at 30%.
“This is a very significant trend given the substantial share of climate stimulus funds that have been directed at energy efficiency and energy management by governments across the globe,” HSBC analysts said.
Agencies
Friday, September 18, 2009
Co-founder of Netscape, Andreessen now joins HP board
Two years after selling his software company to Hewlett-Packard, Marc Andreessen has joined the PC giant's board of directors.
HP announced the appointment, effective immediately, on Thursday. In a statement, HP's chairman and CEO Mark Hurd described Andreessen as "a software pioneer whose leadership has helped shape the Internet...Marc's entrepreneurial background and industry expertise will be a welcome addition to the HP board of directors."
Andreessen and HP's relationship goes back several years, culminating with HP's purchase of Opsware for $1.6 billion in 2007. Since then, Andreessen, best known as the co-founder of Netscape, has helmed social network creation service Ning, and a new venture capital firm Andreessen-Horowitz. He also sits on the boards of eBay and Facebook.
Agencies
HP announced the appointment, effective immediately, on Thursday. In a statement, HP's chairman and CEO Mark Hurd described Andreessen as "a software pioneer whose leadership has helped shape the Internet...Marc's entrepreneurial background and industry expertise will be a welcome addition to the HP board of directors."
Andreessen and HP's relationship goes back several years, culminating with HP's purchase of Opsware for $1.6 billion in 2007. Since then, Andreessen, best known as the co-founder of Netscape, has helmed social network creation service Ning, and a new venture capital firm Andreessen-Horowitz. He also sits on the boards of eBay and Facebook.
Agencies
Rs 700 crore govt business is Wipro's target
Wipro is eyeing about Rs.700 crore from government projects in the current fiscal. It intends to nearly triple this in three years. The move comes at a time when the Centre is clearing the decks for a slew of projects under the National e-Governance Plan (NeGP), reports a media.
"The targets for this year represent a 100-per cent growth over the previous fiscal," said Ranbir Singh, Head, Government, Wipro. The export-oriented Indian IT industry has been facing headwinds in its traditional strongholds such as the US and Europe, and though things seem to be looking up, Nasscom's annual projections have pegged software exports growth at 4-7 percent for FY10.
In contrast, the domestic market is expected to grow at 15-18 percent during the year. Projects such as MCA-21, e-passport and eBiz - which were handed out in the past, have whet the appetite of IT firms that are now looking to leverage opportunities closer home. The Unique Identification (UID) project has created quite a stir among vendors and every IT player; Indian and MNC are hoping to participate in the ambitious effort; the other large projects waiting to take off include eDistrict, eCourt, eOffice, Income-Tax and Central Excise.
"While the opportunity is large, it is also important to remember that the lead and the closing timelines tend to be longer for Government contracts. But, clearly, this is a space that every company wants to play in," an industry observer pointed out. Naturally, no one wants to be left behind in the race. Wipro's Joint CEO, Suresh Vaswani, told Business Line recently that the company was 'revisiting' its strategy and game-plan on government business. The company has already clinched a Rs.1,200 crore multiple-year contract floated by the Employees' State Insurance Corporation (ESIC).
The project relates to computerisation of the ESIC and to provide smart cards to around 1.5 crore industrial workers across the country. The contract brought its own share of controversies when rival firm TCS wrote to the Labour Ministry against the procedures adopted in awarding the contract.
Agencies
"The targets for this year represent a 100-per cent growth over the previous fiscal," said Ranbir Singh, Head, Government, Wipro. The export-oriented Indian IT industry has been facing headwinds in its traditional strongholds such as the US and Europe, and though things seem to be looking up, Nasscom's annual projections have pegged software exports growth at 4-7 percent for FY10.
In contrast, the domestic market is expected to grow at 15-18 percent during the year. Projects such as MCA-21, e-passport and eBiz - which were handed out in the past, have whet the appetite of IT firms that are now looking to leverage opportunities closer home. The Unique Identification (UID) project has created quite a stir among vendors and every IT player; Indian and MNC are hoping to participate in the ambitious effort; the other large projects waiting to take off include eDistrict, eCourt, eOffice, Income-Tax and Central Excise.
"While the opportunity is large, it is also important to remember that the lead and the closing timelines tend to be longer for Government contracts. But, clearly, this is a space that every company wants to play in," an industry observer pointed out. Naturally, no one wants to be left behind in the race. Wipro's Joint CEO, Suresh Vaswani, told Business Line recently that the company was 'revisiting' its strategy and game-plan on government business. The company has already clinched a Rs.1,200 crore multiple-year contract floated by the Employees' State Insurance Corporation (ESIC).
The project relates to computerisation of the ESIC and to provide smart cards to around 1.5 crore industrial workers across the country. The contract brought its own share of controversies when rival firm TCS wrote to the Labour Ministry against the procedures adopted in awarding the contract.
Agencies
Thursday, September 17, 2009
Can indigenous systems address IISc's security?
To improve the internal security, the Indian Institute of Science (IISc), Bangalore is set to tap indigenous technology and advanced surveillance systems. "We have about 15 proposals from people and organizations across the country," N. Balakrishnan, Associate Director, IISc, Bangalore told Mint.
Balakrishnan also said that the project would cover four broad areas: Materials detection, information security, video analytics and large-scale data mining. The Department of Science and Technology (DST) tasked the Indian Institute of Science to identify specific technologies and coordinating organizations for the security project. This security project would basically involve with collecting a wide range of data such as travel history, educational qualifications, biometrics from a large number of people and preparing risk profiles of them.
Although the Centre has earmarked Rs. 35 crore for the project, Balakrishnan emphasizes that funds will to be a problem. "This is a large project, where civil and defence agencies are closely going to work with each other. T. Ramasami (the incumbent DST Secretary) will even provide Rs. 3,500 crore if needed," he said.
According to Balakrishnan, this specific project would contribute to fundamental change in the next five years, in the way technology is harnessed to boost up the internal security. "After Mumbai, there's a much greater level of seriousness across the government that will pull this project a long distance," he said.
Mint
Balakrishnan also said that the project would cover four broad areas: Materials detection, information security, video analytics and large-scale data mining. The Department of Science and Technology (DST) tasked the Indian Institute of Science to identify specific technologies and coordinating organizations for the security project. This security project would basically involve with collecting a wide range of data such as travel history, educational qualifications, biometrics from a large number of people and preparing risk profiles of them.
Although the Centre has earmarked Rs. 35 crore for the project, Balakrishnan emphasizes that funds will to be a problem. "This is a large project, where civil and defence agencies are closely going to work with each other. T. Ramasami (the incumbent DST Secretary) will even provide Rs. 3,500 crore if needed," he said.
According to Balakrishnan, this specific project would contribute to fundamental change in the next five years, in the way technology is harnessed to boost up the internal security. "After Mumbai, there's a much greater level of seriousness across the government that will pull this project a long distance," he said.
Mint
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