in the banking space. ‘We have shared views on banking and the state of the market, plus very complementary portfolios as well as banking customers,’ stated John Grosshans, GVP and GM, global financial services and banking at SAP. Together, the two parties ‘will be able to lower cost, time and risk associated with transformation and modernisation at the banks’. The ‘multi-channel go-to-market approach’ meant that either party could now act as prime or sub contractor when it came to services and either party could lead in the case of co-selling, he added.
On the core banking side, ‘CSC has been actively
discussing modernisation of its core banking footprint over the last few years’, observed Grosshans. The uptake of Celeriti had been less than enthusiastic. Aside from First Tennessee Bank, followed by another institution in the US, and Westpac in Australia, IBS was not aware of any other Celeriti users. Now, Hogan users would be offered an upgrade path to
SAP’s core banking suite. Celeriti would be positioned (on a case-by-case basis) as a ‘migration solution’ to assist in the transition from Hogan to SAP for Banking, said Grosshans. SAP and CSC had identified around five different options of migration routes for Hogan users, using various approaches (e.g. regional, functional) and applying Celeriti’s components. The offering was voluntary for the banks, he emphasised. ‘CSC will continue to support and maintain Hogan as per agreements and obligations that the vendor has with its existing customers.’ Celeriti would continue to be developed
DXC Technology
In April 2017, CSC merged with the Enterprises division of HP, to form the $25 billion company, DXC Technologies. This announcement come over a year later, after Hewlett Packard split its business into two entities: HP Inc. focused on PCs and printers and HP Enterprises or HPE, concerned with commercial technology. The new company that would be focused on offering end-to-end IT and digital transformation services, began with about 6,000 public and private sector clients and 250 global partners across nearly 70 countries, and started trading on the New York stock exchange under the ticker symbol ‘DXC’. Former CSC chairman, president, and CEO, Mike Lawrie, who assumed the position of CEO and Technology chairman of DXC Technologies stated that “DXC would provide opportunities to both companies who barely had a 15% overlap in their customer accounts”. In its second quarterly performance, DXC Technologies reported strong growth and revenue of $6.62 billion. The company also announced the spin-off of its United States Public Sector (USPS) business, and subsequently merged the same with Vencore Holdings and KeyPoint Government Solutions. Going ahead, DXC Technology may be seen making strategic acquisitions to enhance portfolio.
and marketed, although it was questionable how much of a priority this was for the supplier. There were around 30 users of Hogan worldwide by this time, primarily in the mid and upper-tier space, with the majority residing in the US. The partnership would give an opportunity for SAP to finally gain a foothold in the core banking software space in the country, something that had eluded the vendor so far. The SAP partnership remained the focus for CSC at the end of 2013. It was centered on building out services around the SAP for Banking core, in four areas. These were data migration services, independent testing services, enterprise services and application management. All these areas previously existed, from past engagements with SAP for Banking customers in Europe. With regards to the Hogan users, the most progress was in data migration, where an un-named bank was piloting the migration of data from Hogan to SAP for Banking. No new takers transpired in the course of 2013. On a
corporate level at CSC there was some effort to make the split between its banking and insurance businesses clearer. Mike Steinharter, formerly of Xerox, joined in November 2013 as a new worldwide general manager of banking and capital markets. There was further cost-cutting, described by Lawrie as ‘an aggressive $1.2 billion cost takeout programme to get fit’ and a divesting of some businesses. Revenues in 2013 were $14,993 million ($15,364 million in 2012) with net income of $961 million (compared with a 2012 loss of $4,242 million).
US Financial Services Technology Market Report |
www.ibsintelligence.com
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