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ECT News Community   »   E-Commerce Times Talkback   »   Re: IBM Grabs PwC Consulting for $3.5B

Re: IBM Grabs PwC Consulting for $3.5B
Posted by: Teri Robinson 2002-07-31 15:35:50
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In a deal that might ultimately shift the balance of power among computer vendors, IBM
will pay $3.5 billion in cash and stock for PricewaterhouseCoopers Consulting. Pascal
Matzke, a senior analyst at Giga Information Group, told the E-Commerce Times that
the acquisition is "actually a good match" that will give IBM a strong position in
high-end projects against the likes of EDS and Accenture. The deal could have long-term
ramifications, particularly for IBM competitors Hewlett-Packard and Sun.

Re: IBM Grabs PwC Consulting for $3.5B
Posted by: Horus 2002-07-31 15:41:20 In reply to: Teri Robinson
IBM is buying the strategic consulting skills it could not grow internally. I worked for IBM for 20 years, and every time they would launch a project to develop the kind of intellectual property needed for strategic consulting, the funding was pulled right around the time the proof-of-concept phase was completed. Most of IBM's Global Services revenues are from very-low-margin outsourcing, installation, and programming services. IBM wants the kind of stratgic consulting - like Accenture and EDS have (EDS also bought theirs, but have done a good job integrating it). IBM is generally poor at integrating acquisitions, so this PwC deal should be a boon to its consulting competitors.
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What was your initial reaction to news of the Colonial Pipeline cyberattack?
It demonstrates that all critical infrastructure sectors are at high risk of disruption by cybercriminals.
Everyone will be paying for this attack in the form of higher energy costs.
Governments need to work more closely with private industries to protect networks for the sake of public safety.
It's a global problem. An international alliance must be formed to hold the perpetrators accountable and prevent future attacks.