Well, Well What do we have nowadays, Large Hardware firms gobbling IT services firms across the world, We would have heard about the HP-EDS deal of 13.2 Billion US dollars that had sent waves in the IT services segment. The latest mover and packers for today is Dell acquiring Perot Systems for 3.9 Billion US Dollars. A much sought after deal during the recession time it may trigger a string of acquisition and mergers in the coming quarters. Perot Systems which was more into IT services like application development, System Integration. Dell the direct-2-customer sales model company which pioneered the customized computer to the customer was facing loosing revenue to its life time rival HP which was aggressive in the market in the past 8 quarters. However much needs to be seen as this transition would lead to better valuation in the industry.
According to Economictimes.com Dell is to acquire Perot Systems for 3.9 Billion US Dollars. The transaction is to completed by November – January quarter.The company’s shares fell 79 cents, or 4.7 percent, to $15.90 in premarket trading, while Perot’s stock shot up $11.79, or 66 percent, to $29.70.
What is this for the Indian IT firms and their peers in this country needs to be seen as India is said to be emerging as the second point of IT revolution for the World. As the great saying “Time and Tide” don’t wait for anyone. The first movers have the instinct and killer advantage over their rivals.
Written by Anand.G
The writer is founder of a cricket website Crickick.com, a IT-ITES Professional, an startup enthusiast