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Hewlett Packard Enterprise rises after shedding services unit

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Harvey Ayers
May 25, 2016 13:37
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The deal with CSC means Whitman is now exiting the market for information technology outsourcing, which helps customers manage and upgrade their systems, leaving her to concentrate on selling hardware that covers servers, storage and networking, along with software and some specialized services.

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Hewlett Packard Enterprise stock rose as much as 13 percent early Wednesday, while CSC stock surged 28 percent to $45.50.

That compares with an average estimate of 48 cents.

There's not a lot of client overlap, Lawrie said, with less than 15 percent of shared customers among top accounts.

"Together, as an agile technology independent services pure play, we will be better positioned to innovate and compete and win against both emerging and established players," he said on the call.

Mark Hurd, who was CEO from 2005 to 2010, led the purchase of EDS to broaden the company's services business.

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Harvey Ayers
May 25, 2016 13:37
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