Accenture Completes Acquisition of Corliant, Expanding Enterprise Networking Services and Capabilities

NEW YORK–(BUSINESS WIRE)–Accenture (NYSE: ACN) has completed its acquisition of Corliant, Inc., a privately held technology consulting firm that helps clients deploy and support advanced Internet protocol (IP) networks.

Providing Accenture with specialized skills, methodologies, tools and Cisco-specific network technology expertise, Corliant strengthens Accenture’s networking services and enhances Accenture’s capabilities and market presence in the network technology space.

“This acquisition helps Accenture strengthen our networking services and skills, particularly around implementing advanced, next generation IP network solutions for our clients,” said John Kaltenmark, head of Accenture Technology Consulting. “Accenture’s experience combined with Corliant’s Cisco-based technology specialists will enable us to help our clients achieve high performance.”

The transition of Corliant’s approximately 150 employees to Accenture will enable the company to meet growing client demand for networking consulting services.

Terms of the deal were not disclosed.

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IBM to Acquire Arsenal Digital Solutions

Combination to Provide Clients a Complete Range of Information Protection Solutions

ARMONK, NY–(Marketwire – December 6, 2007) – IBM (NYSE: IBM) today announced a definitive agreement to acquire Arsenal Digital Solutions, a privately held company based in Cary, North Carolina. Financial terms were not disclosed. The acquisition is subject to regulatory approvals and other customary closing conditions. Upon completion of the acquisition, Arsenal will become part of the Business Continuity and Resiliency Services (BCRS) business unit in IBM Global Technology Services. The transaction is expected to close in the first quarter of 2008.

An emerging worldwide leader in on-demand data protection, Arsenal delivers a comprehensive suite of information protection solutions. Arsenal’s scalable on-demand services architecture provides customers with automated infrastructure management and gives Arsenal the unique ability to provide solutions to all segments of the marketplace.

IBM and Arsenal serve small and mid-market businesses as well as large enterprises that need to achieve data resiliency in light of increasing regulatory requirements, explosive data growth and evolving technology requirements. With the acquisition of Arsenal, IBM will provide global clients with security-rich information protection services designed to handle increasing data retention requirements. Arsenal brings unique capabilities in the on-line data protection market, complementing IBM Tivoli’s flagship data protection offerings and IBM System Storage solutions designed to deliver the industry’s most comprehensive portfolio for addressing enterprise information protection needs.

“Information protection is not optional for businesses today. Continuity of data, applications, and infrastructure means survival in a world that operates around the clock, regardless of a company’s size or industry,” said Philippe Jarre, vice president, IBM Global Business Continuity and Resiliency Services. “IBM’s leading business continuity and resiliency services, combined with managed services from Arsenal, give IBM the most comprehensive range of information protection services, and provide clients the ability to back up and protect their information in a way that is integrated with their business continuity plan.”

“As organizations grapple with stringent government regulations and the continuing explosion of business information, they seek a trusted provider of products and services that will meet their needs on a global scale,” says Frank Brick, chairman and chief executive officer of Arsenal Digital Solutions. “Arsenal delivers a comprehensive information protection portfolio that is adaptable to address businesses of all sizes. Our on-demand capabilities, together with IBM’s global reach and industry-specific knowledge, position us as a strong competitor in this rapidly growing market.”

Arsenal’s services are already used by thousands of clients in a wide range of industries including healthcare, hospitality and manufacturing. Arsenal’s strategic business partnerships with the world’s leading telecommunications providers have helped the company become an industry leader in the on-demand data protection marketplace.

With forty years of global experience in the business continuity space and more than 150 BCRS recovery centers worldwide, IBM has deep industry-specific knowledge and a broad range of major clients and leading services, for an unmatched end-to-end portfolio. Together with Arsenal, IBM will be a leading provider of information protection services for clients of all sizes.

IBM plans to make Arsenal solutions available worldwide through IBM’s BCRS services business, through Arsenal’s existing channel partners, including telecommunications providers, as well as direct through IBM.com and from select business partners.

The acquisition of Arsenal will bolster IBM’s strategy to blend software, hardware, and research into replicable, asset-based standardized services that can be used with multiple clients to help them transform their businesses.

More information about IBM and Arsenal is available at www.ibm.com or www.arsenaldigital.com.

IBM and the IBM logo are trademarks or registered trademarks of International Business Machines Corporation. Arsenal Digital Solutions is a trademark of Arsenal Digital Solutions USA, Inc. All other company and product names and service marks may be trademarks or registered trademarks of their respective companies.

Media contact:
Tim Willeford
IBM
914-766-4618
twilleford@us.ibm.com

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HP Announces Data Center Consultancy Acquisition

On Monday HO announced the successful acquisition of EYP Mission Critical Services, a specialist in the field of designing data intensive facilities where the probability of failure of critical services has to be extremely low.

This follows from their recent purchase of Opsware (OPSW) and positions them for greater revenue generation from the growing market space of data intensive facilities. (From trading floors to storage hubs)

Data centers have been growing in importance for the last five years continually as companies become more and more focussed on the value of their transactional and corporate data as a corporate asset.

IBM acquires Cognos

With Cognos the last of the big Business Intelligence technology offerings now off the table, what will this mean for consulting within the Enterprise technology landscape.

On Monday, Ottawa based Cognos (COGN) formally announced that it would be recommending to its shareholders to accept a $5 billion proposal from IBM (IBM) to acquire the company. This is IBM’s biggest acquisition to date and follows from the successful purchase and integration of MRO Software (MRO) into the IBM technology portfolio of products.

This will give IBM the ability to leverage additional services income from the technology, the ability to deliver one-stop solutions for clients when linked with their Tivoli (MRO Software) offerings, and access to a mature and well-developed distribution channel. (Cognos’ clients include Lufthansa, Home Depot, Amazon.com and Manpower)

The IBM move into Business Intelligence means that companies offering comprehensive Enterprise Management technology solutions have purchased all three of the sector leaders. Oracle purchased Hyperion Solutions for $3.3 and SAP AG (SAP) recently dropped $7 billion on the table for Business Objects. (BOBJ)

The Business Intelligence industry is booming, Sarbanes-Oxley, Asset Performance Management, Business Analytics and the continuing success of Balanced Scorecard Initiatives have breathed a lot of life into this sector recently. Put bluntly The Dashboard is shaping up to be the killer enterprise app of the early 21^st century.

What will this mean for consultants around the world? It may be too early to tell, but there are some easy predictions to make.

On one hand, VAR’s around the world will suddenly have access to a larger portfolio of products that they could represent if they desired, increasing the potential for IBM, say, to find additional distribution channels for their Tivoli technologies (MRO Software) increasing overall revenues.

However, service only consultancies, offering Cognos consulting and training only, will suddenly find themselves faced with competition from gigantic and immensely successful service consultancy like IBM; squeezing their markets and potentially forcing out some of the smaller players.

One of the problems immediately facing IBM is that Cognos is not unique to MRO Software, but with many different Enterprise packages. Large scale consultancies such as Accenture, CapGemini may be less willing to work with technology whose IP is owned by one of their main competitors. This potentially opens up a third unintended consequence in this consolidation; namely the growth of other smaller players in the market such as CorVu, MicroStrategy and SAS.

On balance, the entry en masse into this area by three giants in service delivery and Enterprise technologies is undoubtedly a wise move. In the past, their clients often noted SAP, Oracle, and other ERP systems, were “great for putting information into – but terrible for getting it out again!” So better technology, the ability to increase service sales, and tapping into existing distribution channels are all key benefits.

It will also be good for client organizations; they can now get everything from one source, maybe in one project, enabling them to leverage cost savings out of their Enterprise technology implementations. Lastly, it will generally be good for VAR’s providing everybody with additional avenues to increase earnings.

The ones caught in the middle will be those delivering services, within these areas there are three options open to them.

1) Expand their service offerings by taking themselves into some of the business process work and data analysis work that underlies successful Business Intelligence, thus pushing themselves further into the client company and creating a barrier to entry of the giants such as IBM, SAP and Oracle.

2) Look to develop relationships, and grow their services portfolio, with smaller competing Business Intelligence providers; giving them additional revenue sources alongside the services they already deliver on the big three Business Intelligence products.

3) Alternatively, they can look for other means to deliver additional value through developing add-in software, technologies or templates; or through new pricing or service delivery models.

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Transfield capitalizes on growth in services demand

Australian maintenance contractor Transfield Services (ASX:TSE) continues to go from strength to strength.

Bloomberg recently reported that Transfield Services were considering offering up to $A529 million for GRD, with particular interest in its Minproc engineering group and the waste recycling technologies it boasts.

GRD is a recognised supplier of technology and services within the mining sector and also has significant contracts in the UK and Europe with local councils and other industry sectors.

Just one of a trail of good decisions by the team of Transfield Services. I worked for this company before it was separated from Transfield in Australia where we were providing turnaround management services to BHP at the time. (Many moons ago)

Their success since that time is a testament to just how strong the market is for quality services and technologies in the areas of maintenance and asset management.

In recent press releases they have announced facilities management tie ups in Qatar, they already are into their second year of a maintenance contract there with RasGas, opening an office in Calgary to take advantage of the boom there, renewed contracts with Shell in Malaysia, and the acquisition of Intergulf giving them an additional 400 workers and an even greater beachhead in the Gulf states.

Dubai Aerospace Enterprise takes a stake in US Aerospace

The mergers and acquisitions market in the field of maintenance outsourced providers stepped up a notch this week with Dubai Aerospace Enterprise (DAE) announcing a $1.9 billion acquisition of engine maintenance firm Standard Aero and aviation maintenance company Landmark Aviation.

The integration of these companies within their Middle Eastern operations under DAE Engineering will further develop the company’s capacity to deliver services for commercial engines such as the the General Electric CF34, the Rolls-Royce AE3007 and Model 250, and Pratt & Whitney Canada’s PW100 and PT6 as well as a range of propellers and auxiliary equipment.

The purchase shows the growing interest in asset maintenance companies by large investors such as the state backed DAE, and is part of the increasing trend towards further consolidation within the industry. This is particularly true of the burgeoning aerospace industry within the Middle East as providers scramble for position to provide the services the industry will be requiring.

As the prize continues to increase and more companies lean towards outsourced maintenance providers, we are expecting to see even further consolidation in the area of services and technologies as companies try to cash in on the need for reliability in process, infrastructure, aviation and utility industries particularly.

However it also shows another uncomfortable side to the acquisitions feast. The Middle East has made a lot of progress but it is still a long way from what commentators would call a fair and open marketplace. Nepotism, national associations (often family assets of the local royalty), and the “mens club” tend to determine who will walk away with what part of the pie, rather than the best value for money.

This means that companies backed by state funding and entrenched discriminatory practices will be able to stride through the worlds markets taking advantage of open markets and lax ownership laws within the developed world.

Interesting times for investors looking for the next take over target. The recently rebuffed offer by Transfield Services for GRD in Australia, the recent takeover of Maximo by IBM, the private purchase of Aladon by Ivara are all signs of that the market is heating up as even small and mid size firms strive to be a part of the bigger picture.