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Market Perturbations
by Scott Wilson on August 27, 2008

One of the largest mergers in the industry, and a close second for HP behind it's purchase of competitor Compaq, the EDS deal positions the company as a significant threat to more traditionally focused hardware and services firms, IBM being the most notable. HPs gamble is that it can sufficiently integrate the businesses and cultures to match Big Blue's long-practiced services in this realm. It's a bold move but quite possibly a winning one as the enterprise hardware market faces the dual threats of SaaS and cloud based fulfillment (rendering the utilization of server hardware over the breadth of the industry far more efficient than it has been, and therefore requiring in the long term fewer machines to the task) and virtualization on the horizon.
Permalink: HP seals EDS deal
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Mr Wong
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