Unisys

Unisys Corporation is an American multinational information technology (IT) services and consulting company headquartered in Blue Bell, Pennsylvania. It provides digital workplace solutions, cloud, applications, and infrastructure solutions, enterprise computing solutions, and business process solutions for organizations around the world.

Unisys Corporation
TypePublic
  • NYSE: UIS
  • S&P 600 component
  • Russell 2000 component
IndustryInformation technology
Consulting
Outsourcing
PredecessorBurroughs Corporation
UNIVAC
Sperry Corporation
Founded1986 (1986)
Headquarters
Blue Bell, Pennsylvania
,
United States
Area served
Worldwide
Key people
Peter Altabef (CEO)
Revenue $2.054 billion (2021)[1]
$154 million (2021)[1]
-$448.5 million (2021)[1]
Total assets $2.41 billion (2021)[1]
Total equity (-$113.7 million) (2021)[1]
Number of employees
16,300 (2021)[2]
Websitewww.unisys.com

History

Founding

Unisys was formed in 1986 through the merger of mainframe corporations Sperry and Burroughs, with Burroughs buying Sperry for $4.8 billion.[3] The name was chosen from over 31,000 submissions in an internal competition when Christian Machen submitted the word "Unisys" which was composed of parts of the words united, information and systems.[4]

The merger was the largest in the computer industry at the time and made Unisys the second largest computer company with annual revenue of $10.5 billion.[5] Michael Blumenthal became CEO and Chairman.[6] Soon after the merger, the market for proprietary mainframe-class systems—the mainstream product of Unisys and its competitors such as IBM—began a long-term decline that continues, at a lesser rate, today. In response, Unisys made the strategic decision to shift into high-end servers (e.g., 32-bit processor Windows Servers), as well as information technology (IT) services such as systems integration, outsourcing, and related technical services, while holding onto the profitable revenue stream from maintaining its installed base of proprietary mainframe hardware and applications.[7]

In 1988, the company acquired Convergent Technologies, makers of CTOS.[8]

In 1990, Blumenthal resigned.[6] James Unruh (formerly of Memorex and Honeywell) became the new CEO and Chairman after Blumenthal's departure and continued in that role until 1997, when Larry Weinbach of Arthur Andersen became the new CEO.[6]

Unisys Facilities
Salt Lake City, USA
Sydney, Australia
Bangalore, India
Fox Milne, Milton Keynes, UK
São Paulo, Brazil
Irvine, California, USA
Toronto, Ontario, Canada
Leeds, UK

Product development and CEO changes

Joseph McGrath served as CEO and President from January 2005, until September, 2008. On October 7, 2008, J. Edward Coleman replaced J. McGrath as CEO and was named Chairman of the board as well.[9] On November 10, 2008, the company was removed from the S&P 500 index as the market capitalization of the company had fallen below the S&P 500 minimum of $4 billion.[10]

In 2010, Unisys sold its Medicare processing Health Information Management service to Molina Healthcare for $135 million.[11]

On October 6, 2014, after six years as CEO and chairman, Unisys announced that Coleman was stepping down effective December 1, 2014.[12]

On January 1, 2015, Unisys officially named Peter Altabef as its new president and CEO, replacing Edward Coleman. Paul Weaver, who was formerly Lead Independent Director, was named Chairman.[13]

2020–present time

In February 2020, SAIC announced plans to acquire Unisys Federal, the company’s federal defense contracting operation, for $1.2 billion.[14][15] The company’s federal customer list included over a dozen military and civilian agencies.[14] As part of the acquisition, Unisys has a licensing agreement with SAIC to continue providing its software to the federal clients.[15]

In June 2020, Australia’s Home Affairs’ biometric identification system, built in part through partnership with Unisys, was launched.[16]

In August 2020, Unisys Corporation reported that for the third straight year, NelsonHall has listed the organization as the regional market sector leader in the Evaluation & Assessment Tool (NEAT) Vendor Analysis report for Advanced Digital Workplace Services.[17][18]

In June 2021, the company announced the acquisition of Unify Square.[19] Unify Square provides software and services which help companies manage collaboration and communication platforms like Zoom and Microsoft Teams.[19] In November, Mobinergy, a mobile device management software company, was acquired;[20] and in December, Unisys acquired CompuGain, an Amazon Web Services Advanced Consulting Partner.[21] The company partners with Rubicon Technologies to deliver business process solutions.[22]

In July 2021, Unisys partnered with Vodafone to help the company boost its IT services.[23] The two launched “Vodafone Digital Factory,” and Unisys helped Vodafone clients with technologies like AI, virtual and augmented reality, and blockchain.[23]

In May 2022, the company joined the Plug and Play Enterprise Tech program.[24] This allowed Unisys to source and partner with technology startups to access and use early-stage emerging technology.[24]

In 2022, the company was named a Forbes’ America’s Best Employers For Women and a Leader in Advanced Digital Workplace Services Assessment.[25][26]

Products and services

Unisys offers outsourcing managed services, systems integration and consulting services, application management and device management software, high end server technology, maintenance and support services,[27] and cybersecurity services.[28]

In line with larger trends in the information technology industry, an increasing amount of Unisys revenue comes from services rather than equipment sales; in 2014, the ratio was 86% for services, up from 65% in 1997.[29] The company maintains a portfolio of over 1,500 U.S. and non-U.S. patents.[30]

In 2014, Unisys phased out its CMOS processors, completing the migration of its ClearPath mainframes to Intel x86 chips, allowing clients to run the company's OS 2200 and MCP operating systems alongside more recent Windows and Linux workloads on Intel-based systems that support cloud and virtualization.[31] The company announced its new ClearPath Dorado 8380 and 8390 systems in May, 2015. These new systems allowed the company to transition its ClearPath server families from proprietary CMOS processor technology to a software-based fabric architecture running on Intel processors.[32]

Unisys operates data centers around the world.[33]

  • Cloud, Applications, and Infrastructure (CA & I)[34][28]
    • California State University used Unisys’ CloudForte and Managed Security Services to integrate its hybrid-cloud environment.[34]
    • After acquiring Compugain, Unisys furthered its cloud capabilities, including hybrid cloud and cloud optimization, agile cloud migration, cloud-native capabilities, and data governance.[35]
    • Cybersecurity
      • In November 2020, Unisys updated its Stealth platform to include visualization and dashboard tools to make it easier for an organization to track security in real-time.[36] The new version made it possible for cybersecurity teams to see relationships between all network endpoints, including multiple clouds and edge computing platforms.[36]
  • Enterprise Computing (ECS)[28]
    • In 2013, Unisys won a $650 million Enterprise Computing Center Support contract to support the computer systems used by the Internal Revenue Service.[37]
    • Unisys was the first to develop a server architecture that supported four operating environments to run simultaneously on the same computer system in a single virtualized partition.[38]

Unisys’ company partnerships include the following:

  • VMware[39]
  • Oracle[40]
  • British Telecomm[41]
  • Dell Technologies[42]
  • Amazon Web Services (AWS) MSP Partner and an AWS Government Competency[43]
  • Microsoft Azure Expert MSP partner and a Microsoft Gold Partner[44][45]

Clients

Unisys clients are typically large corporations and government agencies, such as the New York Clearinghouse, Dell/EMC, Lufthansa Systems, Lloyds Bank, SWIFT, state governments (e.g., for unemployment insurance, licensing), various branches of the U.S. military, the Federal Aviation Administration (FAA), numerous airports, the General Services Administration, U.S. Transportation Security Administration, Internal Revenue Service, Nextel, and Telefónica of Spain.

Clients include Bank ABC,[46] Hershey,[46] the Bank of China,[47] Somos,[46] Henkel,[48] Flowserve,[49] The Philippine Statistics Authority (PSA),[50] MASkargo (the cargo division of Malaysia Airlines),[51] Nutreco,[52] California State University (CSU),[15] Air India,[53] RAMS Home Loans,[54] and the Georgia Technology Authority.[46]

Unisys systems are used for many industrial and government purposes, including banking, check processing, income tax processing, airline passenger reservations, biometric identification, newspaper content management, and shipping port management, as well as providing weather data services.

Projects

Additional projects include the following:

Consumerization of IT

A study sponsored by Unisys and conducted by IDC revealed the gap between the activities and expectations of the new generation of "iWorkers" and the ability of organizations to support their needs.[55] The results showed that organizations continue to work with standardized command and control IT models of the past and are not able to profit from the widespread use of newer networked technologies.[56]

Cloud 20/20

Cloud 20/20 is an annual technical paper contest for tertiary students from India in October 2009. The contest allows students to explore the possibilities and complexities of cloud computing in areas such as automation, virtualization, application development, security, consumerization of IT and airports.[57] The contest has drawn participation from universities across India, with over 570 institutes taking part in 2009 and more than a thousand in 2010. The contest culminates in an event where five finalists present their papers before a panel of judges that comprise academicians and technologists. Prizes include the latest technology gadgets, internship projects and career opportunities with Unisys.[58]

Controversies

In 1987, Unisys was sued with Rockwell Shuttle Operations Company for $5.2 million by two former employees of the Unisys Corporation, one a subcontractor responsible for the computer programs for the space shuttle.[59] The suit filed by Sylvia Robins, a former Unisys engineer, and Ria Solomon, who worked for Robins, charges that the two were forced from their jobs and harassed after complaining about safety violations and inflated costs.

Unisys overcharged the U.S. government and in 1998 was found guilty of failure to supply adequate equipment.[60] In 1998, Unisys Corporation agreed to pay the government $2.25 million to settle allegations that it supplied refurbished, rather than new, computer materials to several federal agencies in violation of the terms of its contract. Unisys admitted to supplying re-worked or refurbished computer components to various civilian and military agencies in the early 1990s, when the contract required the company to provide new equipment. The market price for the refurbished material was less than the price for new material which the government paid.

In 1998, Unisys was found guilty of price inflation and government contract fraud, with the company settling to avoid further prosecution.[61] Lockheed Martin and Unisys paid the government $3.15 million to settle allegations that Unisys inflated the prices of spare parts sold to the U.S. Department of Commerce for its NEXRAD Doppler Radar System, in violation of the False Claims Act, 31 U.S.C. § 3729, et seq. "[T]he settlement resolves allegations that Unisys knew that prices it paid Concurrent Computer Corporation for the spare parts were inflated when it passed on those prices to the government. Unisys had obtained price discounts from Concurrent on other items Unisys was purchasing from Concurrent at Unisys' own expense in exchange for agreeing to pay Concurrent the inflated prices".[62]

Unisys was the target of "Operation Ill Wind", a major corruption investigation in the mid-to-late 1980s. As part of the settlement, all Unisys employees were required to receive ethics training each year, a practice that continues today.[63]

In October 2005, the Washington Post reported that the company had allegedly overbilled on the $1-to-3-billion Transportation Security Administration contract for almost 171,000 hours of labor and overtime at up to the maximum rate of $131.13 per hour, including 24,983 hours not allowed by the contract. Unisys denied wrongdoing.[64]

In 2006, the Washington Post reported that the FBI was investigating Unisys for alleged cybersecurity lapses under the company's contract with the United States Department of Homeland Security. A number of security lapses supposedly occurred during the contract, including incidents in which data was transmitted to Chinese servers.[65] Unisys denies all charges and said it has documentation disproving the allegations.[66]

In 2007, Unisys was found guilty of misrepresentation of retiree benefits.[67] A federal judge in Pennsylvania ordered Unisys Corp. to reinstate within 60 days free lifetime retiree medical benefits to 12 former employees who were employed by a Unisys predecessor, the Burroughs Corporation. The judge ruled that Unisys "misrepresented the cost and duration of retiree medical benefits" at a time "trial plaintiffs were making retirement decisions" and while it was advising them about the benefits the company would provide during retirement.

Also in 2007, Unisys was found guilty of willful trademark infringement in Visible Systems v. Unisys (Trademark Infringement).[68] Computer company Visible Systems prevailed over Unisys Corp. in a trademark infringement lawsuit filed in Massachusetts federal court. In November 2007, the court entered an injunction and final judgment ordering Unisys to discontinue its use of the "Visible" trademark, upholding the jury's award to Visible Systems of $250,000 in damages, and awarding an additional $17,555 in interest. Visible Systems claimed Unisys wrongfully used the name "Visible" in marketing its software and services. The jury found the infringement by Unisys was willful. Visible Systems appealed the final judgment, believing the court wrongly excluded the issues of bad faith and disgorgement of an estimated $17 billion in unjust profits from the consideration of the jury.

In 2008, Joe McGrath stepped down after a no confidence vote from the board, and was replaced by J. Edward Coleman, former CEO of Gateway Incorporated. The president of the federal sector, Greg Baroni, was also fired.[69] Unisys announced on June 30, 2008, that the Transportation Security Administration (TSA) had not selected the company for Phase 2 of procurement for the Information Technology Infrastructure Program.[70] In July, Unisys announced its plans to file a formal protest of the TSA decision with the Government Accountability Office (GAO).[71] On August 20, 2008, the TSA announced it was allowing bidding from all competitors including Unisys and Northrop Grumman, who both filed formal protests with the GAO and protested TSA's decision to the Federal Aviation Administration's Office of Dispute Resolution, after not initially being selected.[72]

In 2010, Unisys Hungary terminated the local Workers' Union representative Gabor Pinter's employment contract with immediate effect for raising concerns on the company's practice about the overtime payments and the non-respect of the health regulations in its local Shared Services Center. According to the verdict of the Labour Court of Budapest, Unisys' act was illegal and the Company must reimburse all damages of the Workers' Union representative.[73][74]

In 2012, Unisys Netherlands censured computer security expert Chris Kubecka for an anti-censorship talk at the Hackers on Planet Earth Number Nine, a conference which focused on highlighting censorship with a talk titled: The Internet is for Porn. Unisys responded to the news story by quoting its policy on public talks by staff.[75]

See also
  • Burroughs Corporation
  • CANDE
  • Convergent Technologies
  • Eckert–Mauchly Computer Corporation
  • Elliott ALGOL
  • ES7000
  • USAS (application)
  • HOLMES2
  • Internet censorship
  • J. Presper Eckert
  • LINC 4GL
  • List of UNIVAC products
  • MAPPER
  • NEWP
  • Remington Rand
  • Robert S. Barton
  • Sperry Corporation
  • System Development Corporation
  • TeamQuest
  • UNIVAC
  • Whitpain Township, Pennsylvania
  • Work Flow Language
  • Prémio Pessoa - a prize created by Unisys and the Portuguese newspaper Expresso

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