HP Enterprise Services (formerly EDS)

Independent no more

When Electronic Data Systems (EDS) shareholders accepted a bid of $13.8 billion from Hewlett Packard (HP) in August 2008, the company drew a close to its more than 40 years of operation as an independent entity in the IT services field.  Upon entering the HP fold, the two firms announced more than 24,000 layoffs over the following three years to speed their integration and, in December 2008, announced the latest phase of that process: as of January 2009, EDS will be a business unit within HP's technology solutions group.  EDS CEO Ron Rittenmeyer retired on December 31, 2008 and September 2009, the company was renamed HP Enterprise Services.

HP Enterprise delivers services in three practice areas: infrastructure, applications and business process outsourcing (BPO).  Its clients hail from the health care, manufacturing, energy, financial services, transportation and government sectors.  The applications division helps clients develop, integrate and modernize their software applications; BPO, which the firm claims "is in our blood" focuses heavily on credit card transactions, health care claims, benefits administration and document processing.  Infrastructure services include support for desktops, servers and mobile devices, as well as hosting, data storage and networking.  HP Enterprise boasts reputable clients such as the US Navy and General Motors, its former parent company. 

Small start, big payoff

In 1962, an entrepreneurial young Texan named H. Ross Perot spent $1,000 to incorporate a new company he called Electronic Data Systems, or EDS. (According to one story, Perot had come up with several different names for his fledgling firm during a service at a Presbyterian church in Dallas.  EDS was among the options he had scrawled on the back of a pledge envelope.)  EDS' first business agreement was a contract to rent unused time on Southwestern Life Insurance's IBM mainframe computer.  Perot secured his first client, Iowa-based Collins Radio, two months later.  The radio company sent its data and computer tapes to Dallas, where Perot and his two employees processed them.  EDS rented other companies' computers for three years, until finally it acquired its own IBM 1401 in 1965.  From these modest beginnings, the company grew into an IT services empire that handles operations through its 139,500-strong workforce. Although Perot left the firm in 1986, his small-town-boy-makes-good legend is still very much a part of the EDS mystique. 

Services and contracts

The firm has come a long way since then, having been ranked as America's largest IT services firm for the second year in a row on the 2007 Fortune 500 list.  The firm was also pinpointed in a June 2007 report from Forrester Research as the world's No. 1 IT infrastructure outsourcing company.  In September 2007, EDS was awarded a three-year contract to develop a comprehensive tax system for the state of Kentucky.  The $33.2 million contract will include automation of Kentucky's tax administration and collections functions.  In August 2007, another big deal came along: The firm was awarded a $68 million contract extension by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), a unit overseen by the U.S. Department of Justice.  Under the terms of the contract, EDS will provide day-to-day seat management services under the firm's existing ATF Enterprise Standard Architecture III contract.  Enabling it to further penetrate the public sector is EDS' November 2007 acquisition of Saber Corp., a software company that serves state governments.  Saber's products assist in the management and regulation of state-run functions, such as voter registration, public retirement programs, public health services, motor vehicles, unemployment insurance and document processing.

Power of two

September 2009 marked a historical step for EDS as it was acquired by HP.  The two companies integrated its business to form HP Enterprise Services, which has grown its portfolio of services leveraging HP's years of experience in the technology industry.  Aside from technology solutions and enterprise services, HP Enterprise's current products and services include networking, servers, software, storage and technology services.  HP Enterprise has a significant impact on HP's business. For the third quarter of 2009, almost half (47 percent) of HP's total revenue and 60 percent of its non-GAAP operating profit were attributed to HP Enterprise. 

In 2010, the Department of Homeland Security (DHS) partnered with HP Enterprise to hasten the procedure regarding immigration status verification.  The $41.6 million contract included the automation of application services used by the DHS Immigration and Customs Enforcement's (ICE) Law Enforcement Support Center (LESC).

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HP Enterprise Services (formerly EDS)


5400 Legacy Drive
Plano, TX 75024
Phone: (972) 604-6000
Fax: (972) 605-6033
h10134.www1.hp.com

STATS


  • Employer Type: Public
  • Stock Symbol: HPQ
  • Stock Exchange: NYSE
  • SVP & General Manager: Andy Mattes
  • 2008 Employees: 138,500

Major Office Locations

  • Troy, MI
  • Plano, TX

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SALARY FINDER

SALARY FINDER

Health Service Administrator

  • $0
  • 25
  • 50
  • 75
  • 100
  • 100+
Yearly Salary Range (US$ Thousands)