EDS, acquired by Hewlett-Packard
EDS, acquired by Hewlett-Packard is a company.
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Key people at EDS, acquired by Hewlett-Packard.
EDS, acquired by Hewlett-Packard is a company.
Key people at EDS, acquired by Hewlett-Packard.
Key people at EDS, acquired by Hewlett-Packard.
Electronic Data Systems (EDS) was a pioneering global technology services company that founded the IT outsourcing industry over 45 years ago, delivering IT and business process outsourcing to clients across manufacturing, financial services, healthcare, communications, energy, transportation, consumer retail, and governments worldwide.[1][2] Based in Plano, Texas, EDS was acquired by Hewlett-Packard (HP) in 2008 for $13.9 billion at $25 per share, creating the world's second-largest IT services provider behind IBM, with HP pushing its hardware portfolio into EDS's vendor-neutral services model.[1][3][4] The deal aimed to bolster HP's competition against IBM in IT services, combining HP's $107.7 billion revenue with EDS's outsourcing expertise, though integration challenges arose from cultural and vendor differences.[1][3][5]
EDS was founded in 1962 by H. Ross Perot, who built it from a startup into a leader in data processing and IT services.[2][5] Perot, after leaving IBM, identified demand for outsourced computing amid rising mainframe costs, securing early contracts like one with Frito-Lay that fueled rapid growth.[2] Key milestones included Perot's leadership until 1986, when General Motors acquired EDS for $2.5 billion in 1984—then the largest for a computer-services firm—requiring it to operate independently while tripling revenues in the first year through GM business and expansions into telecom and automation.[2] Post-Perot, leaders like Morton H. Meyerson and Lester M. Alberthal diversified into energy and manufacturing, evolving via a leadership council; by 2008, declining growth led to the HP sale at a discount from its 2001 peak.[2][7]
EDS rode the 1960s-2000s wave of corporate IT outsourcing as businesses shifted from in-house mainframes to specialized providers amid cost pressures and complexity.[1][2] The 2008 HP acquisition timed with HP CEO Mark Hurd's push to rival IBM's dominance (10% market share vs. the new entity's 7%), marking the outsourcing sector's largest deal and second-largest IT transaction ever.[3][4][5] Market forces like vendor consolidation favored it—HP integrated its hardware to cut costs and compete with nimbler rivals—but challenged EDS's neutral partnerships (e.g., Sun, Xerox), influencing ecosystem shifts toward bundled hardware-services models.[3] Post-merger, it shaped HP's services arm, though HP's later woes partly traced to integration struggles, underscoring M&A risks in maturing IT services.[5]
Post-2008 acquisition, EDS fully integrated into HP (later Hewlett Packard Enterprise for enterprise services), evolving into legacy IT outsourcing amid cloud shifts that diminished traditional models.[6] Trends like AI-driven automation and hybrid cloud will pressure remaining services, but HP's scale positions it for modernization contracts in regulated sectors. Its influence may wane as startups disrupt outsourcing, yet EDS's foundational role endures in enterprise IT foundations—echoing Perot's vision that outsourced the world's data processing revolution.[1][2]