No surprises if HP buys CGNZ

No surprises if HP buys CGNZ

WHILE both Hewlett-Packard and CGNZ remain mum on speculation that the vendor may snap up the consulting firm, industry experts say the move would make sense.

An article in Computerworld on Monday said CGNZ is a probable target for acquisition by HP.

But both companies still refuse to confirm or deny this, saying they do not comment on industry rumours.

Nevertheless, buying CGNZ would make sense for HP, or any other large IT services operation, says Jenna Griffin, analyst at research firm IDC.

In addition to IT services, CGNZ also provides business consulting, which is a field other players such as HP, IBM and Unisys are keen to expand into, says Griffin.

“Consulting work can be used as an advantage to win implementation work,” she says.

As an independent consultancy, CGNZ could be seen as a threat by larger organisations.

In fact Griffin points out HP’s standing in IDC’s annual Mindshare report was down across the board this year.

Other industry sources believe HP is on the acquisition wagon as it has been losing services business to the larger Gen-i group, which now incorporates Telecom Advances Solutions and Computerland.

Meanwhile, Griffin says the industry would lose an objective consulting practice if CGNZ is acquired.

“There are, however, other players without vendor affiliation looking at entering IT services. There is a market for what CGNZ offers,” she says.

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