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HP Seals the Deal, Buys EDS For $14B

timothy posted more than 6 years ago | from the the-same-only-different dept.

HP 214

netbuzz writes "Following yesterday's spate of heated rumors, the announcement comes this morning that HP has completed a deal to buy EDS for just under $14 billion. The acquisition has been approved by the boards of both companies, according to HP. EDS CEO Ron Rittenmeyer has issued an e-mail to his employees promising that the company brand will continue and, "We are — and will remain — EDS."

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214 comments

So long HP (-1, Troll)

EriDay (679359) | more than 6 years ago | (#23391072)

It's been nice knowing ya.

Heh... (5, Insightful)

leonbev (111395) | more than 6 years ago | (#23391084)

I wonder if Digital's and Compaq's CEO's sent out a similar e-mail when they got bought out by HP :)

Look at the bright point, guys... at least you didn't get bought out by IBM. They would have completely turned the business on it's head in a manner of months!

Re:Heh... (3, Funny)

Gigiya (1022729) | more than 6 years ago | (#23391244)

Why would Compaq's employees want to stay Compaq?

Re:Heh... (5, Informative)

Anonymous Coward | more than 6 years ago | (#23391294)

Compaq's CEO certainly sent out a similar email.

The surviving Compaq portions of the combined company still have a lot of Compaq culture in them, but the HP culture is slowly eating that away.

The CEO's extreme cost cutting is having an effect as well. Compaq employees used to have individual offices and free Cokes in the labs. Now we have cubes and expensive vending machine Cokes. Hell, they even took away the sporks from the break rooms.

So, EDS folk: welcome to the company. Say goodbye to your sporks.

Re:Heh... (4, Funny)

Lord_Frederick (642312) | more than 6 years ago | (#23391438)

'Tis better to have sporked and lost than never to have sporked at all.

Re:Heh... (1, Funny)

Anonymous Coward | more than 6 years ago | (#23391690)

The surviving Compaq portions of the combined company still have a lot of Compaq culture in them, but the HP culture is slowly eating that away.

What? Letting engineers run things, designing interesting equipment with exotic cutting-edge technology, with everybody getting their own key to the stockroom for personal projects? Service manuals written like EE textbooks? Bean counters shot on sight?

Oh, wait, wrong HP.

Re:Heh... (4, Insightful)

spookymonster (238226) | more than 6 years ago | (#23391742)

If your biggest issue is the loss of a few perks, sounds like the cost-cutting was targeted perfectly.

Now if you'd complained about something that actually impacted your job performance (excessive micromanagement, armed guards outside the stationary closets, etc.), I might've felt some sympathy....

Re:Heh... (5, Insightful)

spideysense (822379) | more than 6 years ago | (#23392104)

Yeah because I'm sure the few hundred dollars they spent on coke and sporks in a year cut REAL deep into the $9.6billion profit from last year. Treating people like their actually human and throwing them a few tiny perks here and there goes a long way.

Give me a Cappacino machine (2, Insightful)

kaiwai (765866) | more than 6 years ago | (#23392156)

Reminds me of what I said to my boss - don't give me that pay rise; get a cappuccino machine and free coffee and I'll be happy. He couldn't believe it - the fact I was happy to give up a pay rise for that. As I said to him, if I get free coffee at work, I don't have to pay for it, which means I come back better off in the end :D

Re:Give me a Cappacino machine (2, Insightful)

Cajun Hell (725246) | more than 6 years ago | (#23392318)

No wonder psychology's mysteries have always eluded me!

don't give me that pay rise; get a cappuccino machine and free coffee and I'll be happy. .. As I said to him, if I get free coffee at work, I don't have to pay for it

Except that you paid for it! The difference being that your payment would always be earmarked for coffee (which is fine if you were just going to spend it on coffee anyway (even during financial emergencies)). I guess it's also cool that you end up paying less tax on it.

He couldn't believe it
For once, I share a PHB's disorientation and confusion. It's a strange world.

Re:Give me a Cappacino machine (1)

644bd346996 (1012333) | more than 6 years ago | (#23392534)

If you drink enough coffee, then it is possible to get a net gain out of the deal. You're paying a fixed cost for an unlimited amount of coffee, so you'll probably end up drinking a lot more coffee than you otherwise would. If the raise was going to be fairly small, you can come out ahead by quite a bit.

Re:Heh... (3, Insightful)

Anonymous Coward | more than 6 years ago | (#23392200)

If your biggest issue is the loss of a few perks, sounds like the cost-cutting was targeted perfectly.

Now if you'd complained about something that actually impacted your job performance (excessive micromanagement, armed guards outside the stationary closets, etc.), I might've felt some sympathy....
One of the key elements to the rise of Google has been all the little things it did for its employees to show they value and respect them via perks and giving them time to work on projects of their choice. If employees don't have much to start with in the line of perks and those are taken away it will likely be taken as a great insult to employees.

Put a spork in it, it's done. Not even real silverware. HP essentially said "let them eat cake with their fingers". Trading your office for a cubicle isn't too nice either.

Re:Heh... (5, Interesting)

AchilleTalon (540925) | more than 6 years ago | (#23391900)

Someone can define HP's culture? Compaq's culture? Digital's culture? IBM's culture? And so on? It would be interesting to finally know if they are really so much different.

Re:Heh... (4, Interesting)

Enderandrew (866215) | more than 6 years ago | (#23392160)

I don't know that I can define the above cultures very well, but corporations do have cultures, as do brands. When I worked for Harrahs, Inc. we never said gambling even though we owned casinos. We were about responsible entertainment. We also provided a clear formula to the customers for how much "gaming" meant how many reward points.

When we became Horseshoe, we were all about gambling, gambling and gambling. We couldn't say gambler enough. Our comping system because obtuse and complicated, and seemingly random. We actually comped less, but tried to create the image that anyone could be comped for anything. Employees were also treated better even though we basically had the same management staff all the way up to the GM of the casino, but brand and company cultures were different.

Re:Heh... (4, Funny)

BBandCMKRNL (1061768) | more than 6 years ago | (#23392656)

Someone can define Digital's culture?
Yes.
Digital - The beatings will continue until morale improves. The CEO has a reserved parking spot for his luxury car, eats lunch in his private dinning room, and a 24 x 7 security detail.

DEC - The CEO parks his 10 year old pickup truck, the same one he uses to haul his trash to the dump on weekends, in any empty parking spot because he doesn't have a reserved one, eats lunch in the cafe like everyone else, and only has a security detail when the BoD demands it. He comes down to the hardware labs to not only admire your project but to actually understand it.

Unfortunately, Ken didn't understand business as well as he understood technology. But then Robert Palmer didn't understand either.

Re:Heh... (2, Insightful)

Enderandrew (866215) | more than 6 years ago | (#23392120)

Compaq did in fact send out a similar email, and after the disastrous merger was complete, they also promised not to close down the facilities here in Omaha, despite announcing that they were going to outsource production facilities. Shortly after promising us that all of our jobs were safe, they laid everyone off.

Re:Heh... (1)

thesolo (131008) | more than 6 years ago | (#23392258)

All that high-fructose corn syrup is terrible for you anyway.

HP did you a favour, drink water instead!

Re:Heh... (0)

Anonymous Coward | more than 6 years ago | (#23391878)

IBM wasn't interested in that business to start with, that's how EDS got started. Ross Perot was an IBM salesman at one time and his customers constantly told him they wished they could outsource certain jobs rather then do them in house. Perot seeing an opportunity to sell these services suggested to IBM that they set up to offer them, IBM refused to and Ross Perot left IBM to start EDS. It took him a while to get things started as his company then lacked the stature of an IBM which is why he offered it to IBM in the first place knowing it would be easy sales for him when he went back to those same customers who were asking for the services in the first place. He could leverage economies of scale in the days when main frames were nearly the only option as well as take responsibility handling jobs that CEOs didn't understand and therefore didn't want to have in house.

Re:Heh... (1)

AJWM (19027) | more than 6 years ago | (#23392358)

I wonder if Digital's and Compaq's CEO's sent out a similar e-mail when they got bought out by HP :)

Digital wasn't bought out by HP, it was bought out by Compaq.

But yeah, a moot point in the long run.

Re:Heh... (0)

Anonymous Coward | more than 6 years ago | (#23392410)

I wonder if Digital's and Compaq's CEO's sent out a similar e-mail when they got bought out by HP :)

Look at the bright point, guys... at least you didn't get bought out by IBM. They would have completely turned the business on it's head in a manner of months!
IBM would have shut EDS down.

I hope HP is smarter than GM (5, Interesting)

maurert (515791) | more than 6 years ago | (#23391094)

As an HP employee I hope HP is smarter than GM was. Remember the GM bought EDS in the 80s and EDS milked GM for all it was worth. EDS did great; GM not so. Of course GM thought it was buying a company to outsource its IT to while HP is looking to merge outsourcing operations with EDS.

Re:I hope HP is smarter than GM (2, Informative)

PalmKiller (174161) | more than 6 years ago | (#23391174)

Looks like EDS is still milking that cow: http://www.computerworld.com/managementtopics/outsourcing/story/0,10801,108308,00.html [computerworld.com]

Re:I hope HP is smarter than GM (1)

Creepy (93888) | more than 6 years ago | (#23391938)

But EDS lost some huge contracts like the GM OnStar (to Convergys back in 2004), one of several huge losses for them. I'm not sure if Convergys still runs the contract or not, but I do know it's not run by EDS.

Re:I hope HP is smarter than GM (1)

RetroRichie (259581) | more than 6 years ago | (#23392272)

They also lost some huge contracts to HP. It's kind of amusing to me that GM was doing its best to diversify its global service contracts across vendors, but are ending up, in the end, pretty close to what they had to begin with.

Re:I hope HP is smarter than GM (1)

nurb432 (527695) | more than 6 years ago | (#23392122)

Some of us who where there felt it was the other way around.

Re:I hope HP is smarter than GM (1)

maurert (515791) | more than 6 years ago | (#23392386)

What that EDS "bought" GM?

Re:I hope HP is smarter than GM (1)

nurb432 (527695) | more than 6 years ago | (#23392444)

No, that GM tried to suck EDS dry instead.

And that Ross got forced out due to political reasons, not a nice simple 'buy out' business decision as was being implied.

Yay! (5, Insightful)

Anonymous Coward | more than 6 years ago | (#23391106)

Yay! An alternative to IBM Global Services from the maker of some really good servers. Too bad it's EDS, well at least it's not Accenture!

Go Ross Perot!

Re:Yay! (2, Informative)

morgan_greywolf (835522) | more than 6 years ago | (#23391198)

Go Ross Perot!
Ross Perot no longer has anything to do with EDS. He sold out his stake to GM many, many years ago.

Re:Yay! (1)

Creepy (93888) | more than 6 years ago | (#23392042)

He was still on the board of directors after selling his stake to GM. I checked today and it doesn't appear he is on the current board of directors, though (he is Chairman Emeritus of Perot Systems).

Re:Yay! (1)

darth_MALL (657218) | more than 6 years ago | (#23391606)

What the hey hey! I work for IBM Global Services...while the company culture is nothing stellar - the servers are great at least.

I admit, this amuses me... (2, Informative)

NecroPuppy (222648) | more than 6 years ago | (#23391132)

Seeing as one contract of EDS's, NMCI, just finished (or is real damn close to finishing) a tech refresh of the computers they provide.

We all got new Dells.

Re:I admit, this amuses me... (3, Insightful)

HangingChad (677530) | more than 6 years ago | (#23391356)

NMCI, just finished (or is real damn close to finishing)

About freaking time. NMCI is to technology what Iraq is to foreign policy. A bloody, never-ending contractor boondoggle that cost the taxpayers billions while providing no long term value. You could bury NMCI and SPAWAR in the same hole and the world would be a better place.

NMCI aside I think this is a positive development for both companies. It will provide an alternative to Dell Consulting and a big project support source that isn't married to MS. It's a real foot in the door for HP on a lot of big projects. Nicely done.

Re:I admit, this amuses me... (2, Insightful)

rot26 (240034) | more than 6 years ago | (#23392562)

Better check again. EDS isn't going anywhere. In fact, it's getting an even bigger slice of the NMCI pie to fuck up. I always thought we'd just be better off letting AOL run the NMCI network, and stick advertisements all over everything. I'm pretty happy with my Dell workstations, though... I guess this will mean we'll be using HP's at the next tech refresh.

The Deal will (0)

Anonymous Coward | more than 6 years ago | (#23391138)

continue the outsourcing of jobs from older higher paid employees to lower wage grunts.

EDS is an anti-labor, low pay sweatshop.

Re:The Deal will (5, Insightful)

SimonGhent (57578) | more than 6 years ago | (#23391176)

EDS is an anti-labor, low pay sweatshop.


EDS is an IT services company, what else would it be?

Re:The Deal will (1)

ronbo142 (942105) | more than 6 years ago | (#23391248)

EDS aka Everyone Dresses the Same and the prevayer of the Navy/Marine Corps Intranet debacle. Lucky for HP only two more years are on that contract.

Re:The Deal will (5, Funny)

Anonymous Coward | more than 6 years ago | (#23391258)

EDS are a useless shower of bastards who will be first against the wall when the revolution comes. Utterly incompetent, they have an over-inflated sense of self-importance which is continually bolstered by corporations and governments who continue, against all evidence and logic, to truck huge wads of cash over to the aforementioned useless bastards who then fuck it all up and deliver shit, late.

The UK government has already given the cunts enough of my cash that I should own a couple of EDS offices by now. Instead we've got sweet F.A.

Re:The Deal will (1, Funny)

Anonymous Coward | more than 6 years ago | (#23391396)

Please don't hold back. Tell us what you really think.

So long DELL? (5, Interesting)

Quetzo (753720) | more than 6 years ago | (#23391140)

Looks like HP is moving into IBM/DELL territory ( managed IT services ). I'm not too worried for IBM.

DELL, on the other hand, has a real fight on its hands. So.. umm... Mike.. why don't you forget about your small business services crap and go back to focus on making good machines and providing good customer service.

I don't know if EDS was the best vehicle to use, but its better than trying to setup something new.

Re:So long DELL? (4, Informative)

maxume (22995) | more than 6 years ago | (#23391346)

IBM does $54 billion in services.

EDS does $22 billion in services.

HP does $17 billion in services.

Dell does $6 billion in services.

The deal probably isn't quite about Dell.

Re:So long DELL? (4, Insightful)

UnknowingFool (672806) | more than 6 years ago | (#23391534)

It used to be that Dell sold decent computers for decent prices. They grew because they were cheaper than HP or IBM and used more commodity parts than Compaq. These days parts are getting cheaper and cheaper, and the desktop isn't as profitable due to really low margins. IBM foresaw that and sold off their PC business. That coupled with the fact that most PCs built in the last 5 years are good enough for most consumers who are not gaming so people don't need to replace their PCs anytime soon. Also, Dell has, for better or worse, tied their success to Windows. Vista now constitutes a significant amount of the cost of new PC as hardware prices drop. Even though Dell offers XP on new machines, they've already paid for the more expensive Vista (which includes downgrade rights).

It's ironic that Dell and Apple have switched places from 10 years ago where Apple was in trouble and Dell was riding high. Apple computers are price competitive if you compare them feature for feature; it's that Apple, for most part, focuses their efforts on higher end models and laptops which have better margins and avoided the pricing wars on the low end.

For Dell to remain, they have take some risks. I won't suggest that they sell off all the assets and give the money back to the shareholders that Dell suggested to Apple ten years ago.

Re:So long DELL? (3, Informative)

Fozzyuw (950608) | more than 6 years ago | (#23391998)

Apple computers are price competitive if you compare them feature for feature;

Oddly, every time I price out a Mac Book Pro, it's well over $1,000 more than it's PC counter part. Case in point... the 17" Mac Book Pro 2.5Ghz Core 2 Duo starts at $2,799. I priced out a 17" Dell Inspiron 17" 2.4Ghz Core 2 Duo and it came up to ~$1,700 with 3-year accidental damage warranty. When I configure the Mac Book Pro to have more similar features (4GB ram, 3-year Apple Care Warranty, etc), the price jumps too $3,348.00 So, how are Mac's Price comparable? That's $1,600 more than the Dell laptop.

For that $3,348.00, you can get a cutting edge AlienWare (a Dell acquisition) with multiple video cards, RAID HD's, etc. So, what am I seeing wrong that makes the Dell Inspiron system not comparable, hardware for hardware, to the Mac Book Pro? Easy enough to load Ubuntu on the Dell giving it a "geek" OS.

Serious question. I've been wanting a Mac Book Pro, but the prices are astronomical compared to PC laptops.

Re:So long DELL? (0)

Anonymous Coward | more than 6 years ago | (#23392140)

Dell is usually cheaper than Apple, but there is a range of products that are price comparable. Apple's best products are in the mid-range in terms of price and features. A lowend Mac Pro is priced fairly well for a workstation. iMacs are very competitive if you can stand the form factor. I used to recommend Apple laptops to people because they were so much better and cheaper. Right now it's harder to do that with the stock intel parts. One thing I'm curious about is if the MacBooks have the same battery life that the iBooks did or even close. Most PC laptops seem to go 1-2 hours. My old iBook could easily go 4 hours on one charge with wifi enabled. I'd pay extra for that feature alone.

The answer is it depends with apple. Their servers are overpriced. I can buy like 3 dell servers (1u) for the cost of a single lowend xserve.

Re:So long DELL? (1)

barzok (26681) | more than 6 years ago | (#23392192)

Look at other points on the spectrum. I've been keeping an eye on Dell for a laptop for my wife because I get a discount through my employer. Configured with nearly identical specs to my MacBook, the Dell price is within 10% of the MacBook.

Unfortunately, my wife refuses to use MacOS so I can't just get her a MacBook - I have no idea how she'll cope with the XP to Vista transition.

Re:So long DELL? (1)

CrackedButter (646746) | more than 6 years ago | (#23392424)

Dude, everyone knows that you have to price up the PC to the Mac and not the other way around!

Apple is price competitive (1)

Enderandrew (866215) | more than 6 years ago | (#23392312)

It's ironic that Dell and Apple have switched places from 10 years ago where Apple was in trouble and Dell was riding high. Apple computers are price competitive if you compare them feature for feature; it's that Apple, for most part, focuses their efforts on higher end models and laptops which have better margins and avoided the pricing wars on the low end.
What are you talking about? Apple is doing well as a company largely because they got into the music business. Apple PC sales are up, because the Apple brand is up, again because of their music venture. Corporations don't buy Apple computers largely.

And last time I checked, Dell wasn't in trouble. Vista bombed, but Dell said that they would continue to see XP even if Microsoft says they can't anymore. Dell was happily selling Windows 2000 licenses well after Microsoft said everyone must go XP. What Dell sells to the average home PC buyer, and what Dell servers their corporate (read: money-making, important customers) customers is another thing altogether.

And Apple computers are no where competitive price wise. Most Apple systems I look at are $800 more than their counterparts. When looking for a monitor last year, someone mentioned how great the True Cinema displays are. I looked at one, and the cheapest one they offered was like $500-$600. I got a better monitor for $169, which was a 19 inch widescreen LCD with 2 ms response time and a fantastic contrast ratio.

Saying that Apple is price competitive on PC hardware is just a bold-faced lie.

For Dell to remain, they have take some risks.
Again, I'm not sure where you get this. When I worked for Harrahs, we had a contract that no matter what, we only purchased Dell hardware. We had all kinds of problems with their desktops. We had countless power supply and motherboard issues, and it didn't matter that they also over charged us. We were never going to look at anything else, because Dell is the big name.

I work for a newspaper company now, and it is the same story. We get tons of crappy Dell products, and we even replaced a bunch of working HP laser printers with crappy Dells, but we only buy Dell hardware, and likely always will.

Dell just keeps signing more and more exclusive contracts all the time. Let me know when Apple signs even one deal with a Fortune 500 company to go all Apple hardware, because I guarantee you almost every one of those companies is Dell exclusive right now.

Re:Apple is price competitive (1)

644bd346996 (1012333) | more than 6 years ago | (#23392608)

Your "better monitor" is smaller than any Cinema Display has ever been, and it is almost certainly a TN panel, meaning that it's color gamut and viewing angles suck in comparison to the Cinema displays. The Cinema displays aren't at all targeted towards gamers and budget buyers who don't care about picture quality. They are for people who would like to get something almost as good as an Eizo for half the price.

Re:So long DELL? (1)

ISoldat53 (977164) | more than 6 years ago | (#23391580)

Michael's just dressing up the pig so he can sell it.

Ignorance is the Fount of Humor (1)

Shadow Wrought (586631) | more than 6 years ago | (#23391142)

I don't know who ED is, but dude just got rich!

Re:Ignorance is the Fount of Humor (0)

Anonymous Coward | more than 6 years ago | (#23391326)

I don't know who ED is, but dude just got rich!


Actually there's two of them. Hence the name of the company: EDS. They'll have to split it of course (neither one is named "Steve"), but still pretty good if you ask me.

In related news... (1)

morgan_greywolf (835522) | more than 6 years ago | (#23391146)

In related news, EDS brought in former chairman and CEO Ross Perot as a consultant on the deal, who thought it was a great idea.

Today, they asked Perot what he thought of the deal, and he said: "I think it's great they're buying HP!"

There was no one available for comment from large EDS customer General Motors.

Re:In related news... (1)

kpainter (901021) | more than 6 years ago | (#23391470)

I think we are about to hear that "huge sucking sound" Ross was talking about.
shit + shit = shit

The day after. (5, Interesting)

demachina (71715) | more than 6 years ago | (#23391170)

"We are -- and will remain -- EDS."

Until the day after the merger, the execs cache out, and the infighting between the remaining managers starts. Executives on the bottom end of the merger always do one of two things:

- Cash out
- Try to outmaneuver the execs on the top end of the merger and take over the whole company, with a lot of bitter intrigue in the process

You have to wonder how current EDS customers who are attached to their non HP hardware and software will feel about this when EDS suddenly has a massive bias to drive every nail with an HP hammer.

Re:The day after. (1)

Dan Ost (415913) | more than 6 years ago | (#23391216)

Every EDS supported machine I've seen in the last 6 years was either Compaq or HP.

So, I guess what I'm saying is that nothing will change.

Re:The day after. (1)

gstoddart (321705) | more than 6 years ago | (#23391246)

Every EDS supported machine I've seen in the last 6 years was either Compaq or HP.

So, I guess what I'm saying is that nothing will change.

Well, I know several people who work for EDS.

Dell and Sun equipment isn't uncommon, depending on the customer and what they need. Who knows what that will mean going forward, but, some of their big customers aren't going to be told what machines to run things on -- some of them are pretty big organizations.

Cheers

Re:The day after. (1)

njcoder (657816) | more than 6 years ago | (#23392666)

Dell's probably going to take a larger hit than Sun. Customers may still want some of Dell's lower end servers and desktops where HP can't compete on price. While HP's desktops and x86 servers can easily replace Dell's, there are more dependencies and loyalties when it comes to Unix. With Unix, it's not just the hardware but also the OS.

When HP comes up with marketing to get Solaris customers, the plan is to migrate them to Linux, not HP/UX. I don't think that HP has put the same effort into HP/UX that Sun has in Solaris. IBM seems to at least be trying to play catch-up.

HP does offer and certify Solaris on their x86 servers [hp.com] I wonder if they may take the plunge and make an OpenSolaris port for their HP 9000 and even Alpha based servers. There's are a couple projects to port OpenSolaris to IBM's Power and Z series mainframes, both of which seem to have some support from IBM. I doubt that IBM would give up on AIX but it would be an interesting scenario for HP to move to OpenSolaris on their hardware. In the Unix world, Solaris seems to have the most momentum. But then again in the unix world, most people are probably still running OS versions that are 2 release behind current.

Re:The day after. (1)

carnalforge (1207648) | more than 6 years ago | (#23391338)

Instead whenever i worked with people from EDS it was for SUN servers. And they do have some pretty big hosting costumers and support contracts on SUN servers .... But to be fair i usually work with SUN stuff so obviously i've seen more that side. But probably someone from EDS can tell more.

Re:The day after. (1)

SimonGhent (57578) | more than 6 years ago | (#23391222)

You have to wonder how current EDS customers who are attached to their non HP hardware and software will feel about this when EDS suddenly has a massive bias to drive every nail with an HP hammer.


Which will have accounted for a lot of HP's reasons for buying EDS.

EDS provide out-sourced desktop support for a lot of large companies and this will certainly put a squeeze on Dell and IBM in those places.

Re:The day after. (2, Funny)

Danathar (267989) | more than 6 years ago | (#23391308)

This is not a bad thing. Having worked for EDS in the 90's I can tell you that ANYTHING is better than that overbloated stuffed shirt company.

Working for EDS is well known as the ninth hell of IT. HP is probably further up in Dante's list but I'm sure it IS futher up.

Re:The day after. (3, Funny)

AchilleTalon (540925) | more than 6 years ago | (#23392054)

You have to wonder how current EDS customers who are attached to their non HP hardware and software will feel about this when EDS suddenly has a massive bias to drive every nail with an HP hammer.
"Hitting your thumb is equally painful whatever the hammer's brand."

- Confuscius -

Re:The day after. (1)

sgtrock (191182) | more than 6 years ago | (#23392154)

- Try to outmaneuver the execs on the top end of the merger and take over the whole company, with a lot of bitter intrigue in the process

Isn't that what the Compaq execs did to HP? :)

Darwin Deason is jealous (0)

Anonymous Coward | more than 6 years ago | (#23391188)

After failing to negotiate a deal with HP two years ago to buy ACS, HP just said "Take That!" by buying a huge ACS competitor. ACS sucked and I hear EDS isn't any better.

Re:Darwin Deason is jealous (1)

morgan_greywolf (835522) | more than 6 years ago | (#23391226)

After failing to negotiate a deal with HP two years ago to buy ACS, HP just said "Take That!" by buying a huge ACS competitor. ACS sucked and I hear EDS isn't any better.
EDS sucks. Trust me. I was contracted to General Motors for many years. (No, I wasn't EDS).

So no more REDS and TEDS then? (0)

Anonymous Coward | more than 6 years ago | (#23391220)

If you'd ever worked for EDS then you know what those mean.

Re:So no more REDS and TEDS then? (0, Offtopic)

bsDaemon (87307) | more than 6 years ago | (#23391330)

Marxists or Ted Kennedy? But I repeat myself...

At least, that is how I except H. Ross Perot's company to approach those monikers.

The view from Dallas (2, Informative)

RobertB-DC (622190) | more than 6 years ago | (#23391228)

The Dallas Morning News, EDS' hometown paper, is carrying the announcement [dallasnews.com] as well. Kinda soft-peddling it, with a rather dismissive note at the bottom about the Bad News:

During a conference call with reporters Tuesday morning, Mr. Rittenmeyer said there will probably be some job cuts as a result of the deal.

But he suggested they might not be extensive, noting that H-P and EDS don't currently overlap in many business areas.

"In terms of job cuts, we are continuing to streamline our workforce at EDS," Mr. Rittenmeyer said. "We've been doing that for some time. There obviously are going to be some changes. We had plans for that this year. We're going to continue to look at automation. We're going to continue to look at quality. Automation makes quality and service better for the client. It's just a natural evolution."

Re:The view from Dallas (1)

jedidiah (1196) | more than 6 years ago | (#23391434)

If you're at EDS you're already stressed out and worrying about your job being
shipped out to Bangalore. Being bought out by HP doesn't really impact this. The
same people eyeballing Green Acres are still eyeballing Green Acres.

Bad news for Dell? (1)

DoofusOfDeath (636671) | more than 6 years ago | (#23391234)

The NMCI [wikipedia.org] contract for EDS had them rolling out a bizillion Dell-branded desktops and laptops to people in the Navy and Marine Corps. I wonder if Dell just saw a massive revenue stream get shifted to HP?

Re:Bad news for HP!!!!! (0)

Anonymous Coward | more than 6 years ago | (#23392606)

Has anyone here actually had the displeasure of working with EDS?

I worked with them on an NMCI project and the EDS manager's actions were laughable.

They had no clue what was going on, could not even define the requirements, and then when presented a solution did not even bother to notate anything except a dollar value.

Not exactly my idea of who I want helping the government define their intranet.

this seals it: HP is now a Texas Company (3, Interesting)

Ralph Spoilsport (673134) | more than 6 years ago | (#23391288)

They were the essence of silicon Valley, having invented a work/life system that was the envy of the industry. Then Carly came along and fucked the place up. Merging with compaq was NOT a victory for HP, but was a major move for Compaq. The pay curves and HR policies were downgraded to compaq levels, and now HP is a shell of its former self. I wouldn't be surprised if after buying EDS they move the HQ from Palo Alto to Houston or Dallas.

Very very sad.

RS

Re:this seals it: HP is now a Texas Company (0)

Anonymous Coward | more than 6 years ago | (#23392188)

yip a Texas company always reminds me about the Story of The Mad Shitter who used to work at TI...

Google it

Funded entirely with profit from ink sales (2, Interesting)

laing (303349) | more than 6 years ago | (#23391318)

HP makes about $10B per year in profit from ink alone. They make another $6B or so from everything else so they could easily afford this transaction. It does raise some eyebrows though because EDS has IT support contracts with lots of big companies. If EDS starts exclusively providing/supporting HP products, competitors (think Dell) might have grounds to complain to the DOJ.

Probably the wrong message to send to customers (1)

Zey (592528) | more than 6 years ago | (#23391354)

"We are -- and will remain -- EDS."

I don't know about elsewhere, but, EDS have a reputation for unrivaled incompetence in Australia. A better message would be: "Under new management - EDS will improve."

Re:Probably the wrong message to send to customers (3, Interesting)

SimonGhent (57578) | more than 6 years ago | (#23391822)

I don't know about elsewhere, but, EDS have a reputation for unrivaled incompetence in Australia


And in the UK.

For instance:

"It's amazing that anyone could manage to cock it up so successfully."

http://news.zdnet.co.uk/leader/0,1000002982,39175379,00.htm [zdnet.co.uk]

and

"The Ministry of Defence has forced IT services giant EDS to sign a "failure clause" before it will let the company to continue its bid for the £4bn Defence Information Infrastructure contract

http://www.theregister.co.uk/2005/01/05/eds_failure_clause/ [theregister.co.uk]

Erectile Dysfunction Syndrome? (0)

Anonymous Coward | more than 6 years ago | (#23391390)

I think they could have paid Rosie O'Donnell a couple hundred bucks to pose nude... that would certainly get rid of my boner!

"We are -- and will remain -- EDS." (1)

R2.0 (532027) | more than 6 years ago | (#23391412)

Might want to check in with Compaq and DEC about that. Maybe Agilent, too.

Re:"We are -- and will remain -- EDS." (1)

Chapter80 (926879) | more than 6 years ago | (#23391484)

Might want to check in with Compaq and DEC about that. Maybe Agilent, too.
Agilent?

Agilent was a spin off of HP. Wrong way, bub.

Pie charts are a-coming! (1)

140Mandak262Jamuna (970587) | more than 6 years ago | (#23391422)

EDS CEO Ron Rittenmeyer said he is going to get a pair of over sized rubber earlobes to put on and print some pie charts on 8x10 paper. He hopes that would be enough to get 17% of the vote in the coming presidential election. If he could get a retired admiral who turns off the hearing aid during vice-presidential debate it would be a dream ticket!

EDS - So Long (0)

Anonymous Coward | more than 6 years ago | (#23391430)

Ahh, I'm glad I left EDS earlier this year. Though I was a contractor to be fair, I could still smell the dead fish. And they never gave me my promised pay rise...

Incorrect Title (1)

abolitiontheory (1138999) | more than 6 years ago | (#23391452)

Titles for this article I'm seeing in my head:

HP Buys Acronym For 14 Billion, Tells Sajak It Would Like To Solve The Puzzle.

HP Buys Other Acronym, Cites Insecurity Over Its Own 'Length.'

HP, EDS Fall In Love, Says It Was 'Meant To Be.'

Secret Formula (1)

y86 (111726) | more than 6 years ago | (#23391458)

HP's secret plan.

1. Buy ED's
2. ?
3. Profit

Re:Secret Formula (1)

jax9999 (919336) | more than 6 years ago | (#23392102)

The ? in this is outsourcing.

basically EDs is a call center provider amongst other things. right now HP pays other centers premium denero (sometimes literally) so now, its cheaper and they have more control. so, profit.

From an ex-employee... (1)

Kabuthunk (972557) | more than 6 years ago | (#23391506)

MAN, and EDS laid me off a few years ago. If they hadn't, I'd have still been there, and gathered some of the stocks they toss at every employee to make it seem like the crap wages that we got weren't as bad. Wouldn't everyone who currently has stocks in EDS have just gotten a healthy paycheque?

Re:From an ex-employee... (0)

Anonymous Coward | more than 6 years ago | (#23392116)

Nop, the stock with merger and all (25USD) is not work more than 8 months ago (28) before the new CEO. Much less before Dick "The rat" Brown, (60USD)

Re:From an ex-employee... (0)

Anonymous Coward | more than 6 years ago | (#23392324)

From a CURRENT Employee: Nope, in my nearly 10 years in the pit, I've seen two stock packages... Both were before the crash that tanked our stock, so they are virtually worthless. Compound it with EDS was doing some layoffs right before the Q1 announcement so I wound up dumping my stock expecting it to crash.

$18 -> $25 = D'oh.

employee speaking (3, Funny)

C0vardeAn0nim0 (232451) | more than 6 years ago | (#23391520)

as an employee, all i want to know is when we here at EDS will be able to buy HP gear with employee's discount...

20% off on a laser printer would be sweeeet!!!

Re:employee speaking (1)

VEGETA_GT (255721) | more than 6 years ago | (#23391786)

I am at EDS for another 2 1/2 weeks. I am a contractor and since EDS changed mandate to hire in India and over seas only my boss was not allowed to hire me full time. but at this point in time I am kind of happy that I am out of here, as hey HP's last big merger with compaq was not such a hot one, who is to say it will be hot here. Also note HP is a lot bigger into using over seas employees then EDS has been tho EDS has been moving that direction. but ya its sad to see so much of it as thats a lot more cash not in the US/Canadian economy. but then stock people want more off shoring wonder why the economy is crap these days. O well Rogers just hired me, so I found a new home back in canada EH.

Re:employee speaking (1, Funny)

Anonymous Coward | more than 6 years ago | (#23392216)

As a former HP employee, I hate to say you're out of luck. Our discounts were terrible.

My cost center manager once had me buy an HP 6110 all-in-one from Staples because it was cheaper than the employee discount.

Re:employee speaking (0)

Anonymous Coward | more than 6 years ago | (#23392334)

. . . yes, but . . . HP employees have to pay 20% MORE for the printer cartridges, so HP makes off in the long run . . . probably . . .

Re:employee speaking (0)

Anonymous Coward | more than 6 years ago | (#23392370)

I am an HP employee, and I can find street prices better than employee purchase prices any day of the week.

Good News/Bad News (1)

LaRoach (968977) | more than 6 years ago | (#23392764)

The good news is they'll give you a free ink jet printer! The bad news is they'll make you pay retail for the cartridges...

EDS is a terrible place to work (0)

Anonymous Coward | more than 6 years ago | (#23391618)

As someone who was an EDS employee for 10 years, I can confirm all the horror stories being mentioned here. The incompetence, shoddy work, laziness, bureaucratic bloat, utterly clueless management...it's all too true. Screw the customer, all anyone cares about there is CYA (cover your ass). I am so glad I left there.

HP took a chunk of EDS' GM business in '06, so GM probably likes this deal since it will make for a clean merger, probably not a lot of job cuts. But for EDS' non-GM business there will likely be some big job cuts.

EDS better not be like hp and up intel drivers amd (1)

Joe The Dragon (967727) | more than 6 years ago | (#23391714)

EDS better not be like hp and up intel drivers on amd systems like how they did and it messed up XP sp3.

Transcript of the final phone negotiations: (2, Funny)

Ancient_Hacker (751168) | more than 6 years ago | (#23391890)

EDS: 16?
HP: No, how about 12?

EDS: 15?
HP: You're getting warmer, how about 13?

EDS: 14?
HP: Okay, that sounds good, but we don't have 14 ink cartridges here, how about 14 billion in cash?

EDS: Well, ok......

Um, yeeeaaaaah (1)

heroine (1220) | more than 6 years ago | (#23391916)

Not the $53 billion that Yahoo Yang wanted for his bonus, but still a good mansion. The more our CEO's make, the richer we feel. Meanwhile, get ready for another surge of unemployed Texasahans in Silicon Valley. Maybe they'll break the $6000 rent barrier.

We're boned (1, Interesting)

Anonymous Coward | more than 6 years ago | (#23392080)

We here at Xerox outsource our IT to EDS.

I for one welcome our new HP overlords.

Was EDS, left, don't want to go back (1)

Neumsy (201524) | more than 6 years ago | (#23392260)

Worked for EDS for 4.5 years in a Medicaid contract. Divorce rate is high, income is low, and you are expected to give your life for the company. I just hope for the few friends I still have there that HP actually improves the culture there.

EDS? Really? (1)

Cervantes (612861) | more than 6 years ago | (#23392604)

Remember when HP used to be about quality equipment and scientific research and innovation? HP Labs?
Yeah, I miss those days. What's next, buying their way into the lucrative "Tickle me Elmo" market?

Round up the herd again! (0)

Anonymous Coward | more than 6 years ago | (#23392620)

HP, it's time to set the Superbowl cat herding commercial [eds.com] free.
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