Ben Pring

Editor in Chief, IT Services

12 August 2002

The news that IBM intends to acquire the consulting arm of PricewaterhouseCoopers (PwC) has sent a shock wave through the IT services industry, if not the entire IT industry.

While many were either stumbling head down through the current malaise or slumbering head down on some far-flung beach, IBM caught everyone unaware with a deal that, although not the largest in revenue terms, is one of the most significant in some time in terms of market dynamics.

For a relatively low price, IBM will acquire a broad range of highly prized skills, development methodologies and business process templates. But more importantly, IBM has purchased an even more valuable set of little black books … or little gray PDAs as they are these days.

PwC Consulting's contacts and relationships - even the occasional personal friendship — will bring significant new opportunity to IBM in its core businesses and open doors into new arenas that IBM has decided it must operate in, if not dominate.

In this Special Report, Gartner outlines the implications of this deal for customers and prospects of both companies, for the two companies themselves, and for their competitors. Analysts from across the different constituencies within Gartner discuss how IBM will change, how dealing with IBM will change, how IBM can win its competitive wars and how IBM can be beaten.

The acquisition of PwC Consulting fundamentally changes the DNA of the world's largest — and still one of the most important — IT companies. This Special Report dissects what the new IBM will look like and how its changes affect you.   
Read more

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IBM's Plan to Acquire PwCC Tips the Competitive Scales
12 August 2002
Ben Pring

With the acquisition of PricewaterhouseCoopers' consulting practice, IBM solidifies its transformation into a services-led technology company. Services no longer is simply a channel for product; it is the product.

image   PwC Consulting Catapults IBM Into the Executive Suite
9 August 2002
Bruce Caldwell   Michele Cantara   Allie Young

IBM is an application and infrastructure services market leader. Its acquisition of PwC Consulting brings IBM to the forefront of high-value-added business solutions and business transformation services.

image   IBM to Acquire PwC Consulting: IBM Corporate View
12 August 2002
Thomas Bittman

IBM's acquisition of PricewaterhouseCoopers Consulting fits its overall strategy of providing total solutions for the enterprise and strengthens its growth capability in cross-platform middleware and servers.

image   IBM to Acquire PwC Consulting: Advice to Service Buyers
9 August 2002
Frances Karamouzis

The transition and integration related to IBM's acquisition of PwC Consulting will likely continue through 2004. Clients must evaluate their existing deals and understand the options and risks presented by this new entity.

image   The IBM/PwC Consulting Merger: A European View
9 August 2002
Nicole France   Peter Dueck   Robert Brown   Ian Marriott   Claudio Da Rold

From a European perspective, IBM's acquisition of PwC Consulting is a merger of equals in consulting and integration. Together, the companies will lead the European project services market.

image   HP Needs Strong Allies to Counter Big Blue
9 August 2002
Michele Cantara

IBM's planned acquisition of PwC Consulting widens the gap between IBM and HP in services. HP needs strong technology and business solution provider alliances to win against a post-acquisition IBM.

image   The Auctioning Off of the Big Five Consultancies: Diminishing Returns
8 August 2002
Martin Lee   Cathy Tornbohm

Gartner Dataquest reflects on the "going rate" of consultancies in light of IBM's acquisition of PwC Consulting. IBM's acquisition looks like a great deal for IBM and PwC.

image   Proposed PwCC Deal Threatens to Damage IBM's SMB Channel
9 August 2002
Ted Kempf   Mika Krammer   Raymond Laracuenta   Michael Haines   Whit Andrews

IBM's intention to purchase PwC Consulting holds potentially damaging consequences for IBM's business partners, particularly those belonging to the Consultants and Integrators program.

image   Business Process Outsourcing: What PwCC Brings to IBM
9 August 2002
Rebecca Scholl   Robert Brown

The acquisition of PwC Consulting will boost IBM's ambitions in BPO.

image   Are PwCC's Expertise and Thick Rolodex Enough to Fortify IBM's Vertical Market Strength?
9 August 2002
Geraldine Cruz   Venecia Liu   Susan Cournoyer   Robert Goodwin   Suresh Gunasekaran   Cynthia Moore   Jeffrey Roster   Rishi Sood

IBM's acquisition of PwC Consulting will boost its business process expertise and revenue outlook in several vertical markets. But potential conflicts could erode IBM's leadership position.

image   IT Services Consolidation Opens Gaps for New Entrants
8 August 2002
Alex Soejarto

Though IBM is gaining share in the IT services market with the acquisition of PwC Consulting, big is not always better. Past lessons remind us that new entrants are a threat to established consultancies.

image   IBM/PwCC Fallout: IT Service Providers Can't Afford to Sit on the Fence
7 August 2002
Christine Adams

IBM's proposed PwCC acquisition is the latest blow to nonexclusivity in IT services alliances. Service providers must make bets on technology providers and coalitions that can compete effectively with IBM/PwCC.

image   A Gartner Conference Call with Analysts: The IBM Acquisition of PwC Consulting
7 August 2002

Listen to Gartner analysts discuss IBM's proposed acquisition of PricewaterhouseCooper's (PwC's) global consulting business PwC Consulting.