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HP targets biggest IT buyers

HP will target the biggest spenders in IT after it completes its purchase of EDS later this month.

HP's UK managing director, Steve Gill, said HP will be meeting with the top 500 biggest users of IT around the world over the next year. Steve Gill has a list of 50 companies to target. Some might have completely outsourced to IBM.

Gill added: "No-one has the breadth of products we do."

HP's $13.9 billion purchase of EDS is due to be completed at the end of August. It will create the largest supplier of IT products and services in the UK public sector. The company is expected to compete with BT and IBM for business in the public and private sectors.

EDS will form an integral part of HP's plans to transform IT in end-user businesses and public sector organisations around the world. Speaking to Computer Weekly this morning, Francesco Serafini, HP's vice-president for EMEA, said: "EDS will boost our software business, which is the fifth biggest software company in the world."

Businesses usually outsource their IT to big suppliers like EDS to cut the operating costs associated with their IT department. Francesco Serafini said the acquisition of EDS along with the software it acquired with Mercury in 2006, will enable HP to offer users tools, services and outsourcing.

HP's software business began with its popular OpenView network and system management suite, and grew with the $4.5bn acquisition of Mercury in 2006. This gave the company an

enterprise resource planning (ERP) product designed to help IT directors run their departments better. Serafini said he wanted to grow the software business over the next 12 months "as fast as possible".


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