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EDS era ends

Ian Brown | Sept. 28, 2009
Change of brand completes the formalities of the EDS acquisition

To be fair, HP CEO Mark Hurd never concealed the fact that he viewed EDS as a premium channel for HP technology and solutions. HPs reasons for wanting to acquire EDS included the desire to match or rather beat IBMs share-of-wallet at Fortune 1000 customers. If the seven-year deal technology and services that HP has just announced with mining company Vale SA is anything to go by then the force-feeding has started with a vengeance: Vale gets everything from PCs to data centres wrapped in with management, mainframe and disaster recovery services.

Internally, the name change represents the passing of the old guard. Ron Rittenmeyer, EDS CEO at the time of the acquisition, retired in December 2008. EDS European General Manager Bill Thomas will leave the company at the end of October 2009. Meanwhile, HP Enterprise Services stays part of the renamed Enterprise Business (formerly TSG) under Anne Livermore and HP leadership.

Internally, the message is also that EDS is now assimilated with HP. Any more job losses and cost-cutting to bring EDS margins in line with HP margins will be HP cuts and hidden to the outside world. EDS is no longer an HP Company its now HP. 

Ian Brown is a senior analyst in Ovum's IT Services Practice. Ian's research focus is on IT infrastructure services and he is a contributor to Outsourcing@Ovum.


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