HP kills off EDS name

HP has killed off the EDS brand, a year after acquiring the company.


HP has killed off the EDS brand, a year after acquiring the company.

EDS will now be known as HP Enterprise Services, the company said today.

The disappearance of the EDS name is a significant event in the IT industry. EDS, founded in 1962 and owned between 1984 and 1996 by General Motors before being spun off, was renowned in the UK for being an early winner of large government IT contracts, including work with the Department for Work and Pensions and the Ministry of Defence.

But EDS lost out on the large identity cards programme, as well as losing its contract for NHS email following a dispute between the two parties. It has also been synonymous with some other troubled government programmes, including the delayed Ministry of Defence DII project, the National Offender Management System (C-Nomis), and the failed tax credits system.

EDS is still embroiled in £709 million suit from broadcaster BSkyB, over a troubled customer relationship management system rollout. But following a lengthy case during 2007 and 2008, both parties are still awaiting a verdict.

The outsourcer will become part of HP Enterprise Business group, the new name for its Technology Solutions Group, which also comprises servers, storage, software and networking. The division sells to small and large businesses, as well as the government.

During the third quarter of 2009, the division counted for 47 percent of HP’s revenue and 60 percent of operating profit.

Ann Livermore, VP at HP and head of the Enterprise Business group, said: “Customers are facing tough challenges in their technology environments. Challenges such as a rigid infrastructure, increasing applications and information complexity are restricting the speed in which IT can add value to the business.”

HP and EDS have been cutting jobs extensively since the acquisition. And executives have also left the company: most notably in May, EDS UK boss Sean Finnan moved to rival IBM Global Services.

Richard Holway, chairman at anlayst house TechMarketView, said he "lamented the decades of contacts, networks and downright experience that has evaporated from EDS". HP Enterprise Services "sounds much more like the real rival IBM Global Services", he added.

He said that "BT had IBM in their sights when they named BT Global Services", saying this proved "leopards can change their name but not their spots". He added: "I happen to think, just as we have reported in the last day on Dell's acquisition of Perot, that the way that services and products companies should be managed is different."

"Recommended For You"

Update: HP to slash 9,000 jobs as it completes EDS integration General Motors in £1.3bn EDS outsourcing renewal