HP closes EDS deal, preserves leadership team
By Chris Kanaracus
,
IDG News Service
, 08/26/2008
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HP said Tuesday that it has completed its $13.9 billion purchase of massive systems integrator Electronic Data Systems, and
it also revealed that EDS' top-level management structure would remain largely unchanged.
HP had already made it clear that EDS president and CEO Ron Rittenmeyer, would continue in a leadership role. On Tuesday,
it confirmed that Rittenmeyer's direct reports would include key executives from EDS continuing in their roles as vice presidents
overseeing various regions of the world as well as functions such as global sales, transformation, outsourcing and marketing.
HP's senior vice president of HP Outsourcing Services, Andy Mattes, will now report to Rittenmeyer in the role of senior vice
president of applications services. Executives in other roles, such as finance, IT, human resources and legal, will report
to HP executives.
The lack of a top-level management shuffle or purge did not surprise one industry observer.
"No real surprises here so far," said Forrester Research analyst Paul Roehrig, via e-mail. "It's very much in line with the
original strategy to fold much of the legacy HP services capability into the EDS management framework."
EDS will handle outsourcing services previously provided by HP's Technology Solutions Group, which will focus instead on designing,
installing and maintaining systems for customers, HP said.
HP plans to reveal more about its plans for EDS on Sept. 15, when CEO Mark Hurd appears at a meeting Webcast for securities analysts.
The massive deal -- which sets up a pitched battle between HP and IBM for dominance in the services arena -- created a combined
services business with nearly $40 billion in annual revenue and more than 200,000 employees as of the end of fiscal 2007,
according to HP.
The IDG News Service is a Network World affiliate.
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Comments (1)
mergerBy Anonymous on September 26, 2008, 6:03 pmIf HP is wise, it will use this opportunity to leverage the excellent workers of EDS and rid EDS of the absolutely awful mid management team. This team is notorious...
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