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As Big Blue Gets Bigger, Do Its Services Rivals Get "Smaller'? Deal "Changes Everything' Hewlett-Packard, others face questions after IBM unveils plans to buy PwC.(INTERNET & TECHNOLOGY)
Byline: J. BONASIA and MURRAY COLEMAN
It's Bigger Blue, and some analysts says that means it's lesser HP, EDS, Accenture and most anyone that wants to compete with the big boys in the huge, potentially lucrative tech services field.
IBM Corp. cemented its perch atop the services heap late Tuesday when it revealed plans to buy PricewaterhouseCoopers Consulting for $3.5 billion.
"This changes everything," said Linda Cohen, an analyst with research firm Gartner Inc.
A number of analysts say the merger strikes a serious blow to IBM's services rivals. IBM Global Services already is by far the largest tech services provider.
IBM's strength is in dealing with chief information officers and other technology-based buyers, working on the nitty-gritty of maintaining and running computer systems. PwC's focus is as a management consultant, working with CEOs and top executives to solve business problems.
"This is an industry-changing play," said Greg Brenneman, chief executive of PwC Consulting. "It means IBM is the only firm to offer end-to-end services by adding our process consulting techniques to their outsourcing business."
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