Hardware & Software Duality

Implications: HP is a long time solid provider of computer hardware, and EDS (founded the information technology out-sourcing industry more than 45 years ago) is a longtime provider of system services. The Plan of Merger, dated as of May 13, 2008, by and among EDS, Hewlett-Packard Company and Hawk Merger Corporation, under which EDS would be acquired by Hewlett-Packard Company appears to merge two very strong technology companies into one   diversified technology giant.

Analysis: This merger appears to be a very positive one for the company going forward.  Both company have solid earnings, and a franchise name within the technology industry.

The hardware/software industries are very different markets, with very different skill-sets. Utilizing the synergies of each company, and at the same time keeping the focus of where each respective company has emerged will be a challenge, and if balanced properly will provide a strong, diversified future for the merged company.