HP and EDS: A Convenient Marriage

5/13 - "HP will be able to compete head-to-head with IBM Global Services, particularly in the outsourcing market...HP will be in IBM’s face in many of IBM’s mainframe site, whose data centers EDS runs. This is going to help HP sell some of its enterprise software...Dell has a strong partnership with EDS and it will surely suffer because of this merger. HP will simply get all the associated server business. I’ve no idea how to estimate the size of this, but it’s not peanuts...Industry trends are running in favor of outsourcing and managed service provision in many areas. HP can ride this trend."

"In summary, the synergies abound for increased sales of HP hardware and software and HP has proved it can strip cost out of its own operation, so it ought to be able to do the same for EDS. And let’s not forget the fact that it’s primary goal will be to grow the combined c...