HP Integrates EDS Into Technology Operations

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Hewlett-Packard on Friday said it was further integrating EDS into its operations to boost its services and product offerings.

EDS, which earlier operated as a separate business unit, will be integrated into HP's Technology Solutions Group, which is responsible for software, hardware, support and consulting services. The combined revenue for both groups was US$14.6 billion, or 43 percent of the company's total revenue, in the fourth quarter of fiscal 2008.

"We are ahead of schedule with the integration of EDS, and combining TSG and EDS is the next step in that process," said Mark Hurd, HP chairman and chief executive officer, in a statement.

HP announced its acquisition of EDS for $13.9 billion in May. At the time, the company said it would fold its outsourcing business into a new unit to be called "EDS -- an HP company," which would be based in Plano, Texas. HP finished the EDS acquisition on Aug. 26 and moved its own outsourcing and application services operations to the EDS unit.

On Sept. 15, HP announced it would integrate EDS into its own business and cut 24,600 jobs over a three-year span as part of an effort to restructure operations and cut costs.

As part of TSG, EDS will continue to offer IT services, application services and business process outsourcing. EDS operations will remain in Plano, a HP spokeswoman said.

The company also announced that Ron Rittenmeyer, president and chief executive officer of the EDS business unit, would retire by the end of the year. Replacing him will be Joe Eazor, who was promoted to senior vice president of EDS. Eazor, previously the executive vice president of corporate strategy and business development at EDS, will report to Ann Livermore, executive vice president of TSG.

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