HP to Take On IBM with Acquisition of EDS
According to the Financial Times Hewlett-Packard, commonly known as HP, is in the process of acquiring Electronic Data Systems (EDS) for $13 billion. EDS is one of the biggest IT services company in a market that is dominated by IBM and was also a pioneer being that it was formed in the 1960s it had a head start in the IT outsourcing which gave it a big hand in getting big lucrative contracts.
With so much happening in web sphere a lot of people have forgotten the other side of technology, IT services:IT outsourcing, design and maintenance of enterprises computer systems, custom building enterprise software and infrastructure. In a Microsoft-Yahoo discussion on a Gillmor Gang podcast Michael Arrington of TechCruch was kind of surprised or shocked to hear that IBM are still a leader in their market.
This move signals the desire of HP to expand the company’s market and try to take on IBM and the way the web is evolving and lines between desktop apps and the Internet (cloud computing) it does make sense to get into the IT services market now. HP needing EDS is like Microsoft needing Yahoo in the search game.
