(CWFA) Corporate Waste Fraud and Abuse Inc.

The name has not yet  been announced for the planned  CSC/HP Joint Venture.   We suggest “CWFA” as the two companies now join forces in a $26 Billion annual revenue mega monster IT venture with a history of ripping off the public. 

CSC Portrait of a Crooked Contractor    HP POGO FCMD Data Base

“WALL STREET JOURNAL”

“Hewlett Packard Enterprise Co. plans to spin off most of its technology services operations and merge them with those ofComputer Sciences Corp., in an $8.5 billion transaction that marks HP Enterprise’s latest adjustment to a shifting landscape that is roiling the market for corporate technology.

HP Enterprise will shed a business that accounts for roughly 100,000 employees, or two-thirds of the Silicon Valley giant’s workforce.

The deal, a blockbuster follow-up to the breakup of Hewlett-Packard Co. last fall, will create a corporate technology services specialist that will be led by Computer Sciences executives and have roughly $26 billion in annual revenue, the companies said. The remaining HP Enterprise operations will concentrate mainly on software, server systems, networking and storage hardware.

HP Enterprise said its estimate of the value of the services unit includes a 50% stake in the new venture created with Computer Sciences, valued at about $4.5 billion, as well as a cash dividend of $1.5 billion and the assumption by Computer Sciences of about $2.5 billion of liabilities.

The move is evidence of ongoing turmoil in the corporate computing market as business spending tightens and traditional data centers give way to cloud computing. HP Enterprise faces increasing competition from cloud-computing vendors including Amazon.com Inc. and Microsoft Corp. that sell metered access to raw computing power over the Internet. Customers must decide whether to opt for cloud services, maintain conventional data centers, or build their own private cloud-like facilities—a business especially targeted by HP Enterprise.
The combined spinoff and merger, which will focus HP Enterprise more tightly on hardware sales, represents a doubling down by Chief Executive Meg Whitman on a breakup approach to the shifting landscape in contrast to the merger strategy taken by Dell Inc. and EMC Corp.
“We are creating two great companies that are going to be more focused on a narrower set of businesses,” Ms. Whitman said in an interview.”

http://www.wsj.com/articles/hp-enterprise-to-spin-off-merge-services-business-1464121433