Eye Current

EDS To Become HP?

HP is currently in talks to buy Electronic Data Systems Corp. for the modest price of $12.6 billion in cash. HP takes the lead when it comes to manufacturing personal computers for the world but teamed up with the technology services of EDS they are hoping that they can start a company to rival the all knowing IBM.

Even with this goal unachieved HP is expected to come close to doubling their revenue with this acquisition. In 2007 EDS alone had $22.13 billion while HP brought in a good $16.6 billion. HP has gone on to say that the business would have its home office in Plano, Texas at EDS Headquarters and led by the chairman and Chief Executive Ronald A. Rittenmeyer.

Seeing as it is HP’s biggest deal in six years it is understandable that they have big plans for EDS if the deal is closed. HP sees this as an opportunity to challenge the IBM Corp. basically at its own game in technology services (IT). As companies expand and see the need for faster better and more technology their need for a great IT service grows, but at the end of the day whom are you going to choose HP or IBM?

posted by James B. @ 6:59 AM