36 thoughts on “HP-EDS: It's About The Clouds, Baby!”

  1. Interesting article 🙂
    EDS acquisition also provides HP with a gazillion EDS consultants/BPO Services too (EDS bought Mphasis a while ago) & EDS has some good clients like BlueCross/GM which outsource a large chunk of IT services to EDS.

  2. Excellent analysis Om, right or wrong. I believe you may be right and you’re the only person I’ve seen address the cloud possibility here.

  3. Insightful Om. It makes a lot of sense. Makes HP look proactive. Consulting is so “2005” – it’s all about the cloud, baby.

  4. Pingback: johnvickers.ca -
  5. Om,

    I don’t think HP was after some datacenter space. In 2006 they announced its intention to reduce from 85 datacenters to 6 . Unless they sold all the datacenters and are now regretting, HP was after some business to strenghten the holes in their offering.

    But with the new paradigms, it’s hard to know HP’s intentions.

  6. In the long run Om is absolutely right and this acquisition reinforces a potential offering from HP for Cloud computing. In the short term, most business from EDS is outsourcing infrastructure and it will not change that quickly.

  7. I think your comment on the possible $3bn BT Data Center buy looks forward to something happening in a few more years… a BT & HP merger!

    Wild?? maybe! but HP used to have BT provide only its european data networks.. with this acquisition, it will also provide Worldwide data networks.

    Also go and look at the recent HP Datacenter consolidation from 85 worldwide datacenters into 6. For HP its about providing the servers/switches through the reseller channel, but some enterprise customers want to lose the responsibility of looking after there own IT. If HP Can put there OWN servers / switches in these new Datacenters ??

    This looks like a good buy. More to it than meets the eye!

  8. @ Jez

    I think it wouldn’t surprise me if there is a HP-BT merger though I think it be a disaster. I think HP can buy BT’s outsourcing business in India, though I am not sure the British Government will approve the sale of telephone company.

    @ All. My theory is that HP is trying to become the GE of Silicon Valley. Highly diversified and betting big on future technologies. Any thoughts?

  9. It is a very smart and future oriented move by HP which will yeild huge benefits in a slow release manner to the combined behemoth. I think given the mega size and mega real estate and Data Centres EDS owns,the deal appears a good bargain for HP. HP may now become a first among equals with IBM. I predict that some counter move from IBM can be expected sooner than later.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.