The bad news just keeps piling up for HP’s Enterprise Services business, which CEO Meg Whitman is trying to turn around.HP runs Commonwealth Bank of Australia’s IT department.
What should have been a routine patch to some PC software has turned into a disaster for the bank, which is one of HP’s biggest outsourcing customers in that country.
A software patch intended for a few internal desktops was mistakenly applied to a much wider set of PCs and servers. Net result: about 95 of the bank’s branches were taken at least partially offline, and only able to offer limited services, such as access to automatic teller machines reports Renai LeMay at Delimiter, an Australian tech news site.
The bright spot for the bank was that it wasn’t worse. The bank has over 1,000+ branches.
But it’s bad news for HP. So bad that Whitman personally met with Commonwealth Bank’s CIO to try and smooth things over, reports Arik Hesseldahl at AllThingsD.
Commonwealth was a longtime customer of EDS, the services business HP bought for $13.9 billion in 2008. But the bank’s contract is just about up, says AllThingsD. Given how much uncertainty there is surrounding HP’s Enterprise Services business—the unit that absorbed EDS—the timing of this snafu couldn’t be worse.
Earlier this week, HP announced that it was taking an $8 billion writeoff from the EDS merger and firing the unit’s leader, John Visentin. Visentin was appointed by previous HP CEO Léo Apotheker. He had only been in the job for a year. Tom Iannotti held the post before him for about 18 months.
The Enterprise Services unit is also the target of a large chunk of HP’s 27,000 layoffs.
There are other contracts at stake, too. HP is in a battle to keep its lucrative Navy-Marine Corps Intranet contract, another EDS customer.
Sources have told Business insider that HP has had a string of short-lived managers overseeing that contract, too.
But HP got some good news last week when NMCI agreed to extend the contract to spend up to an additional $2.1 billion to cover a time gap before its next intranet goes live.
But the Navy is getting close to that next version. Bids on it were due last month and it expects to award the five-year, $4.5 billion contract in February. HP is trying to win the new contract. It formed a team to bid on deal. But it has competition—a team lead by Computer Sciences Corp.