Speculation: HP acquisition of EDS true culprit behind John McHugh leaving HP ProCurve

By Brad Reese on Wed, 06/11/08 - 4:00am.

It is pure speculation by yours truly, but nonetheless quite intriguing that HP's acquisition of EDS could in fact be the cause of John McHugh leaving as vice president and worldwide general manager of HP ProCurve.

In HP's June 6th, 2008 Form 10-Q filing with the Securities and Exchange Commission, ProCurve networking financial results were lumped under Corporate Investments (page 40). Not exactly robust profitability at $14 million on Net Revenue of $448 million for the six months ended April 30, 2008.

Meanwhile, EDS had net income of $716 million on revenue of $22 billion for the fiscal year 2007 (See page 12).

Why yours truly is speculating that the HP acquisition of EDS is the true culprit behind John McHugh leaving HP ProCurve.

The smoking gun so to speak is the EDS February 27th, 2008 Form 10-K filing with the Securities and Exchange Commission - Page 4:

The EDS Agility Alliance is our most strategically significant set of alliance relationships.

Through this series of alliance relationships with leading technology companies, we are able to integrate our alliance members' products and services into the EDS portfolio.

We jointly go to market with EDS Agility Alliance members by engaging in operational business planning and other initiatives related to new and existing clients.

Cisco owns the networking business of EDS and in one swift move, the HP acquisition of EDS kicks the years of hard work and toil by John McHugh to make ProCurve successful, right to the curb:

"The alliance between Cisco and EDS provides customers with a competitive and strategic advantage through our jointly developed global network solutions," said John Chambers - Cisco President and CEO.

"EDS is a trusted advisor, and together we manage today's most advanced global networks while delivering cost savings and advanced capabilities for greater competitive advantage."

"Cisco Systems is a trusted alliance partner," said Ronald Rittenmeyer - EDS President and CEO.

"We work side-by-side to create an innovative, next generation of network services for EDS and our clients."

"Together, we deploy and manage many of today's most advanced global networks that deliver cost savings and superior capabilities to our clients."

Do YOU agree with yours truly, that the success of John McHugh at ProCurve was sacrificed by HP in order to make room for the acquisition of EDS?

http://www.BradReese.Com


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