Giant Sucking Sound ! HP Buys EDS. Is this the *new* IBM ?

[cbelt3]

Yowza ! Buying a multi-$Billion consulting / services firm seems to put HP firmly into the IBM corporate zone, and puts HP in the position to 'out-IBM' them. Will they continue to focus on their corporate customers to the detriment of their consumer users ? Is Hp's "Personal Computer" line going to continue to lag behind Apple and Dell ?

Or is Apple dooooooomed again ?

[M A V I C]

LOL. Leaving out specifics... someone I know worked for a company that was purchased by HP about 10 years ago. It went downhill so he left. A couple years ago he ended up at EDS. Now he's been bought by HP again. He can't escape!

[DharmaDog]

Hmmm. I think HP needed to do something like this, although it was doing very well without a larger services business. HP generated about $17 billion in revenue last year from services. This represents about 16% of HP's total revenue. HP has about 172,000 employees and the company as a whole generated over $100 billion in revenue last year, yet EDS's approximately 139,000 employees only generated $22 billion. Yes, yes, I know I'm leaving out margin, but I can't see how higher margin % on the $22 billion is better than the volume of margin $ on $100+ billion. HP is obviously going to use EDS as a vehicle to get more high profile customers for its other business, like EDS's Navy Marine Corp Intranet deal, which currently uses Dell desktops, servers, and (rolling eyes) storage.


I was at Dell when they were awarded this contract along with EDS, this was also about the time that HP and Compaq merged, which at the time I agreed with the description of the merger as two dinosaurs fraking. In the end, that merger has turned out well, but didn't bear any real fruit until Mark Hurd took over. Hopefully, HP can move a little quicker this time. It should bump HP into the Fortune 10; they're currently 14.

[cbelt3]

I just worry that EDS will suck HP down with it. They were leg-humping GM for so long that I'm afraid they have no idea how to work efficiently. IBM went through HUGE bloodletting in their services areas to get rid of the benchwarmers and paperwork whores.

[SDGuy]

[quote cbelt3]I just worry that EDS will suck HP down with it. They were leg-humping GM for so long that I'm afraid they have no idea how to work efficiently.
Just ask any user of NMCI...
http://www.nmcistinks.com/

[rz]

NMCI: Non Mission Capable Internet

[Racer X]

[quote M A V I C]LOL. Leaving out specifics... someone I know worked for a company that was purchased by HP about 10 years ago. It went downhill so he left. A couple years ago he ended up at EDS. Now he's been bought by HP again. He can't escape!
I have a co worker that has been bought and sold 6 times in 10 years. Now he is back owned by the same people who sold him 10 years ago. He is african-american, and he proclaims his people are STILL being bought and sold. I presume he is reffering to hydrazine fueling specialists, who are few and far between.