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HP: The New Services Powerhouse?

HP is aiming to scoop up EDS for a cool $14 billion or so. HP is already cleaning up in servers, and has a sweet PC and laptop business. And no one can touch it in printers. But today's complex market requires services -- lots of services.

IBM's service business is the biggest and most influential by far. It can help companies take a top-to-bottom look at its infrastructure and redo the datacenter with a more flexible and power-saving architecture. HP can do the exact same thing, but lacks the sheer muscle of the IBM group.

EDS could change all that in a heartbeat. My only concern is in blending the cultures which, given Ross Perot's legacy -- he may have sold EDS to GM in 1984, but his influence lingers on -- are very different.

Posted by Doug Barney on May 14, 2008


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