Takeover and consolidation

After over 2 years of contraction and no turnaround I wonder when Mikey will be replaced.

On the plus side he has done a good pr job making it look like he is steadying the ship, and staff are engaged, but no actual progress on the ground.

His brought in a few of his friends of which most haven't delivered much, so likely HR lady probably be replaced soon before Mike as nothing has been sorted on pay.

Atos, and Kyndral (new ibm outfit) all going for cloud with new chief executives. It can't be long before DXC need to make some exec changes as the $5million execs aren't producing the goods or winning any new business. The only business bieng won is "we will cloud that for next to nothing for you".

The bigger players eg Accenture etc are managing to pay staff and win business. So means some part of DXC, Atos,and Kyndral are on the wrong strategy or aren't big enough.

This cloud strategy sounds the buzz, but maybe its not all what is cracked out to be, especially the public clouds which become expensive.

There needs to be some consolidation as the share prices are at lows. Expect a merger or contract prices being raised as constant under bidding is causing a loss in the industry.

In short with inflation at highs outsourcing prices need to go up, some consolidation has to happen (remember eds,csc,hp, and others) and might be the end of the road for Michael and or some of his pals.

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This is so glaringly obvious Dxc, Atos, or Kyndryl one or more of them is going to get bought out or merge.

Atos is the strongest in the pack as they have been buying other companies, even bought 2 more in the last month. They have booted out their Chief a couple of months ago, new guy starts in the new year, so there will be a period to get up to speed.

DXC still on the downward trend with staff morale rock bottom and customers skepital of giving large business to them. Chief has been in place for 2.5 years but the company is still shrinking so will be looking for a new guy shortly.

Kyndryl went through a period when they weren't winning new business as the de-merger from IBM took place and clients were waiting to see the new company. That's now been sorted and things are on the go again.

There's 3 companies all in the same segment with overpaid execs and the share prices have tanked so are ripe for a takeover. DXC have still to boot the chief out so they are behind the other 2 by 6 months to a year.

If a company eg Accenture took over DXC it could save $60 million in exec salaries, plus other savings of $100 millions so that's already worth paying $3 to $4 billion for the run rate.

Dxcs current market cap is $7.8billion so Accenture would only have to pay $4 billion for the full Company.

Either way MK2 will be walking off with big bucks like MK1.

Watch this space something is about to happen.

Lol @4vxi+1e0BBqW0

M1 wasn't buying skill, he was buying contracts. The skill was just cost he wanted to get rid of.

And when you do what he did its just a temporary pump of the share price. By the time you've hollowed it out you've got no skill or contracts left.

Think of it as buying furniture factory and chopping it up for firewood.

Accenture share price drop only a fraction of the smaller players eg from $371 to $ 363 a drop of 2%, something they are doing right.

The market cap/size of Accenture is just under $240billion and Dxc's is $7billion, makes Accenture 32 times bigger, so to buy dxc would be loose change for Accenture.

Remember Atos with a $4billion capitalization nearly took out dxc this year.

Even m2 may need to think, share price in the 20's now.

Atos gone from $18 to $8 drop of 60%

Kyndryl gone from $40 to $15 drop of 60% in 1 month.

Dxc gone from $100 to $29 down 70%+

Got to be a buyout/merger as the markets due for further falls.

I don’t think M1 was buying companies up. He was buying the skills inside those companies which he then destroyed once they were acquired. Shame really.

One thing is for sure, if M1 was still here he'd be buying Atos/Kyndral (maybe even both) - with predictable results.

We've all seen what happens with a large scale merger - and it isn't pretty for either the employees involved, the clients or ultimately the business itself.

I'd like to hope that M2 has learnt that lesson...

BTW has anyone actually read the Accenture board on this site? If that's what success looks like I'm certainly not signing up.

What are you talking about the stock price up 30.98 USD +9.07 (41.40%)past year , Mike S will not get fired for that. Somehow he has fooled the financial markets and the stock is up. YTD its up too 19.52%.

They are all reading from the same text book see below, consolidation will happen as the stock prices of Atos, dxc, and kyndryl all at lows so someone with a balance sheet will pick up cheap. All "move everybody to the cloud and sell the stack"

Kyndryl has roughly 4,000 customers globally and will focus on selling managed services for multi-cloud environments; zCloud services; application, data, and AI services; network and edge services; security services; and digital workplace services.

Just as happened with HPE Enterprise Services, Kyndryl hopes that by flying the IBM nest, this will indicate to customers they can buy more than just IBM stuff from Kyndryl. This is something the senior leadership team is betting on. They expect revenue to start growing again in 2025.

If the exec team can pull off a miraculous transformation, their winning strategy will likely be taught in business schools for years to come. The alternative? Let's not go there yet

This is the last quarter for mikey to produce some goods, the markets won't like further declines in revenue after 2.5 years.

The overpaid millionaire execs need to work for their money, there's still not enough push for growth and sales, it's all backward looking cuts.

He needs to have some emergency meetings and start calling customers, sure he can sell tech refresh, and other "stack" products quickly.

It's make or break time for the share price which is about to go under $30, after the Cfo talked it up.

Not a chance of becoming attractive until a change of 'tack'... being tied to ITO with Indian GSI dominant and growing 15-20% YOY.

They have debt to grease a buyout, but what's to buy? No assets or IP (the secret is out) DXC customer's can be picked up without buying anything.

Severe consolidation, split, breakup - whatever its called is the next and only route available! I think the Guy will have planned or be planning his exit as I type.

Worthless piece of hype!

Didn't they hire a bunch of d-mb bulldogs from Honeywell and their buddy Scull Hunters from Accenture. What wealth of talent. Will sit back and watch them rob customers blind with their antics while eating my popcorn.

Atos? Is that the same atos with the free falling share price?

IBM? The giant share buy bsck ponzi scheme?

I'd hardly hold up either as examples of businesses I'd want to be a part of or for the one I work for foolishly aping.

Besides which it was too late for M1 to chase "cloud" when he first came to CSC, let alone M2 now.

Cloud is low margin commodity, you clearly need to offer to help people do it but there's little profit there.

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Takeover and consolidation

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