Thread regarding Sungard Availability Services layoffs

New owners are in it to make money first and foremost

The troublesome issue at SGAS is that there was no change in direction. SGAS was too late to the cloud game that includes AWS. These services simply are not selling at a rate to sustain the product. Trying to compete with AWS, Azure and Google for private and public cloud is not a good strategy. Indicating that the product strategy is solid and no changes are needed is tough to understand. If the strategy is solid why are things not selling? Products not resonating with potential customers. If Sungard AS is a valued partner of AWS, why is that not resulting in any sales? Lots of questions that should have made a shift in strategy that didn't.

The new owners will likely sell off as many of the data centers as possible along with the customer base. Allow those sales to provide cash and reduce expenses. In turn that will move headcount to the new data center owners or release them outright, reducing expenses further.

New owners have to take a real close look at the products and k--l the ones that do not sell and are costing the company money.

Don't kid yourself, the new owners are in it to make money first and foremost. They will liquidate what they can and develop a strategy to get products to be sold and then when profitable sell off Sungard AS to someone. Big question is, what products sell or have the potential to be sold (and implemented/supported) to generate revenue? Most of the offerings are ancient and the cloud products are in a very crowded space with big players.

I do not see how Andy Stern stays with Sungard AS. The question really is when and who replaces him. I would say that this time next year, Sungard AS name will cease to exist and possibly bought and absorbed into another company, if the profitability can be achieved in a year.

Well said, @YQcku1D-qlg. I thought it deserved its own thread.

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| 1643 views | | 3 replies (last May 4, 2019) | Reply
Post ID: @OP+YRBOHGy

3 replies (most recent on top)

@YRBOHGy-1foi

DCO - yeah - having been there, have to feel for you guys - you're where the rubber meets the road. Hang in there as long as you can, man - really - it's gotta s---.

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Post ID: @2dif+YRBOHGy

DCO/DCE minions are already at minimum staffing levels without going to 8-5 operations. Can they do that (losing 24x7 staff)? We need the tech guys to be there for reboots, support, etc. We can't get out of our contract for another year.

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Post ID: @1foi+YRBOHGy

Andy, OPG (Price), Lynch, Binford and the rest are gone as of today, they've been following whatever direction they had too in order to not violate the terms of the agreements to fund their severance packages until the May 2 hearing on the proceeding. The next CEO has already been chosen as is the case in these situations. If they show up with any experience in the industry, there may be hope, if they show up and they have no industry experience and their background is in "winding down" companies, it's over. Don't kid yourself, the next few months will most likely be about downsizing to minimum support levels, selling off anything of worth, and other financial companies looking to make a profit on the "wind down"

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Post ID: @mgb+YRBOHGy

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