What does EDS bring to the table for HP?
“In a word — big revenues,” says Ben Pring, research vice president at Gartner.EDS is the No. 2 vendor in IT services (behind IBM), reporting US$22.7 billion in revenue for fiscal 2007, according to Pring, who says by acquiring EDS, HP will immediately more than double its revenue for services. HP reported its fiscal 2007 services revenue at US$16.6 billion. While Big Blue brings in about US$54 million in services revenue, the EDS acquisition will enable HP to quickly accelerate its position in the global technology services market.”IT services are a big and strategic part of the marketplace and they influence technology purchases downstream,” Pring says. That means if IBM Global Technology Services is working with a client at the services level, there is more of a chance the customer will buy IBM technology. If HP can get its foot in the door with more services customers, hardware and software sales could follow.”If HP had a bigger professional services umbrella and footprint, they w
