CSC’s Cloud Services Qualified Pipeline Reaches $900 Million
At Computer Sciences Corp. (NYSE: CSC), a commercial cloud services strategy sounds like it’s starting to gain momentum. Indeed, CSC recorded more than $200 million in cloud services wins during fiscal 2012, and the company has more than $900 million in its qualified cloud services pipeline for fiscal 2013.
Mike Lawrie, president and CEO of CSC, made those disclosures and other cloud-related comments during a May 17 earnings call with investors.
During the call Lawrie stated:
“…things like our cloud offerings are beginning to gain traction in terms of adoption. In fiscal ’12, we recorded $203 million in wins for our commercial cloud services, and we have over $900 million in our qualified pipeline for fiscal ’13. So clearly, getting some traction around cloud, and we’ve recently received some awards in our leadership, so I think that is a very important positive point.”
On the one hand CSC’s potential cloud services revenue stream looks promising. And it’s rare for big, publicly held IT companies to drill down into their cloud business forecasts. Giants like IBM and Microsoft (NASDAQ: MSFT) talk big cloud games but they never really discuss specific cloud revenue figures.
Still, it’s important to keep CSC’s cloud statements in proper perspective. Lawrie did not mention potential profit margins from cloud services.
CSC has extensive experience with recurring revenue customer engagements. But not all of those engagements have gone well. CSC stumbled a bit in the managed services market during 2011 but seems to be regaining its footing now.