Welcome!

Cognitive Computing Authors: Zakia Bouachraoui, Liz McMillan, Elizabeth White, Yeshim Deniz, Pat Romanski

Blog Feed Post

Vendors Survival: Will HP Until 2018? - Revisited

When HP intended to acquire EDS in 2008, I wrote a post titled: Vendors Survival: Will HP Survive Until 2018? - HP's EDS First Take
The prefix implies that the post was not the only post about Vendors Survival. Other posts discuss future survival of other vendors such as Microsoft, Apple, Google, SUN and EMC

The optimistic view was that HP will become a co-leader of the Outsourcing market together with IBM (The market leader). The idea was to get more revenues from the profitable Service market, because Hardware commoditization reduced Hardware profitability.
  
However, my opinion was, that the optimistic view was less realistic than other scenarios. 
It looks like my prediction was not far from reality.

HP Layoffs in 2012
On May, 23 2012, HP announced that it is cutting 27,000 jobs after posting a profit decline of 31%in the second quarter of 2012. Many of the jobs cut where former EDS employees

The Case of General Motors (GM)
On November 2012, HP agreed to transfer 3,000 of its employees to GM. GM is moving its IT services in house instead of Outsourcing to EDS, which is Outsourcing to HP after EDS acquisition by HP.
Outsourcing was EDS main Line of Business. 

GM was a unique EDS Outsourcing client
It is one of the largest clients, but the EDS tight relations with GM  were not based on size only. 

The company which was founded by Ross Perot, was acquired on 1984 by one of its clients. The client was GM.  In 1996 it was spunned off as an independent company.

I worked together with EDS in a large project they executed for one of my clients. 
many of their examples and Best Practices were based on GM projects. 

My conclusion is that loosing GM Outsourcing is a stamp of the failure of EDS acquisition by HP.

Final Notes
1. It is impossible to separate the EDS acquisition from HP management practices. For example, If it would not profit less on the second quarter of 2012, it may cut less jobs or not cut jobs at all.

2. Changes in Outsourcing market trends also influence the EDS deal consequences. Cloud Computing influences Outsourcing negatively. 
The giant Indian Outsources prices are lower than HP's prices. 

3. Will HP survive until 2021? The probability that it survive is still high, but I am less optimistic than I was on 2008. 


Read the original blog entry...

More Stories By Avi Rosenthal

Ari has over 30 years of experience in IT across a wide variety of technology platforms, including application development, technology selection, application and infrastructure strategies, system design, middleware and transaction management technologies and security.

Positions held include CTO for one of the largest software houses in Israel as well as the CTO position for one of the largest ministries of the Israeli government.

IoT & Smart Cities Stories
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
DXWorldEXPO LLC announced today that "IoT Now" was named media sponsor of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that Silicon India has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Published in Silicon Valley, Silicon India magazine is the premiere platform for CIOs to discuss their innovative enterprise solutions and allows IT vendors to learn about new solutions that can help grow their business.