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HP EDS deal completed: competition for Big Blue

Cliff Saran

HP has completed its acquisition of Electronic Data Systems Corporation (EDS), creating a company that will provide hardware, software, services and outsourcing to both private and public sector IT departments, in competition with IBM.

The $13.9 billion acquisition provides HP with EDS' capabilities in health care, government, manufacturing, financial services, energy, transportation, consumer and retail, communications, and media and entertainment.

Businesses who have previously bought outsourcing services from HP's Technology Solutions Group (TSG), will now be managed by EDS in Texas, HP said.

TSG will focus on servers, storage, software and technology services, such as installing, maintaining and designing technology systems, plus consulting and integration services.

HP is looking to target the largest users of IT - both existing HP customers and non-HP customers - with a suite of products and services.

Speaking to Computer Weekly last week, Stephen Gill, UK managing director of HP, said, "We have invested in our sales organisation and will be targeting the top 5,000 companies that spend the most on IT. HP UK will be looking at the top 50 businesses."

HP will continue to offer hardware, software and services to users. Ian Severn, general manager of HPUG, the HP user group, said that it would be looking at ways to improve its technical education seminars to reflect the changes taking place at HP. Today it sent an email to members asking for input and feedback on the type of information they wanted from HPUG.

Shane Mills, interim head of ICT at Newham Borough Council, which has a strategic partnership with HP, said, "It is encouraging to see that HP is going to be able to offer software and other things to help Newham achieve its strategic objectives."


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