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Posted by Pascal Matzke on December 30, 2009
When HP acquired EDS in May 2008 it was clear that in the short term the company would have to manage significant integration challenges before the medium and long term benefits of the acquisition would come to bear. Now, 18 months later, HP claims that the acquisition has been completed and so it is time to take a closer look at what has been achieved so far.
Clearly the speed with which HP tackled this rather complex integration has been impressive. The EDS brand was retired in September 2009 and the combined HP/ EDS organization has been streamlined significantly (which included staff reduction by approx. 19,000 people). But all these measures came at the expense of strong discontent amongst the global employee base (in particular across Europe) and the confusion amongst clients regarding the switch to the HP brand and changing account management responsibilities. Nevertheless, from an operational perspective HP can rightly claim success as it managed to achieve:
Although HP has clearly planted the seeds for market leadership in the services space, a definite strategy linking the now much broader services portfolio together and articulating a clear and consistent value proposition for customers and partners of HP has yet to emerge. In particular HP needs yet to:
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