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EDS assimilation into HP is complete
Filed in archive Market Perturbations by Scott Wilson on September 23, 2009
EDS assimilation into HP is complete
Or so HP is signaling with their announcement today that the EDS division, acquired last year, is to be re-named HP Enterprise Services.

HP has reaped dividends from the acquisition in very little time; EDS was the most profitable division in the company during the 2nd quarter this year, and has proven to be a shot in the arm for a company whose main hardware business was, and will probably continue, to ail. On the public relations front, the deal has been more problematic, resulting in confusion and layoffs at a particularly bad time as CEO Mark Hurd was otherwise attempting to forestall other RIFs by mandating across-the-board pay-cuts for HP staff. As the economy evens out again, however, and services continue to grow as a percentage of the market at the expense of hardware, the rapid acquisition and assimilation will likely continue to serve HP well, leaving competitor Dell to play catch-up, and leaving industry giant IBM on the menu in the coming years.

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