HP to Acquire EDS for $13.9 Billion

Finally HP is  doing the move to strenghten its service business. Hardware margins have fallen and services + software margins are high IT outsourcing is a huge business and provides the finantial stability in the long run.  Margins are good as well.  So HP is getting away from mainly "hardware revenue"

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...

My experience with EDS goes back to 1962, not because it was day one for EDS, but instead, to tell you how bad I am at predicting success stories.  What I’m good at is predicting failures.