Computer Sciences Corporation’s Focus on Cloud and Big Data


Mar. 27 2015, Published 3:16 p.m. ET

CSC’s new focus on cloud and big data

Computer Sciences Corporation (CSC) provides information technology and professional services, including:

  • application services
  • big data and analytics
  • business technology and consulting
  • cloud solutions and services
  • cybersecurity
  • infrastructure services

The company currently focuses on cloud services, big data, and analytics. We’ll look at how the cloud and big data markets are expected to grow.

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Private cloud market to contribute less to total cloud

According to Cisco Systems (CSCO), overall cloud workloads are expected to grow at a compound annual growth rate (or CAGR) of 24% from 2013–2018. By 2018, 69% of the cloud workload is expected to be private cloud, which should grow at a CAGR of 21% through 2018.

In 2013, the private cloud contributed 78% to the total cloud workload. In the private cloud space, Software-as-a-Service (or SaaS) should grow at a CAGR of 37% and would contribute 64% of the total cloud workload, up from 35% in 2013.

The Infrastructure-as-a-Service (or IaaS) workload will grow at a 3% CAGR to contribute 22% of the total cloud workload, down from 49% in 2013. In 2018, 14% of the total cloud workload is expected to be Platform-as-a-Service (or PaaS) workload, down from 16% in 2013. PaaS would grow at a CAGR of 16%.

If CSC is able to keep pace with the continually changing cloud technology, then it would expect good growth in its cloud business in its NPS and Commercial segments. This segment growth is also evident in CSC’s industry counterparts such as Microsoft (MSFT), Box Inc., and Salesforce.com (CRM).

Big data market

According to International Data Corporation (or IDC), the global big data technology and services market is expected to grow at a CAGR of 26.4% to reach $41.5 billion in 2018. IDC predicts that the individual segments in big data would start slowing down as the “technologies are maturing.”

With the number of acquisitions, CSC is trying to focus more on cloud and big data services. The industry growth in big data can help CSC and its counterparts such as Oracle (ORCL), Teradata Corporation (TDC), and Hewlett-Packard (HP). CSC is a part of the Technology Sector SPDR ETF (XLK), and it also accounts for 0.20% of the iShares S&P Global Information Tech ETF (IXN).

In the next part of this series, we’ll discuss how CSC creates value for its shareholders.


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