H-P announced Tuesday that it will buy the outsourcing services company for $ 13.9 billion .
services
h-p announce tuesday buy outsourcing service company $ 13.9 billion
H-P announced Tuesday that it will buy the outsourcing <m> services </m> company for $ 13.9 billion .
Big Blue to Meet Its Match in HP-EDS
The repercussions from the merger of Electronic Data Systems ( EDS Quote - Cramer on EDS - Stock Picks ) with Hewlett-Packard ( HPQ Quote - Cramer on HPQ - Stock Picks ) will ripple broadly throughout the tech industry .
H-P announced Tuesday that it will buy the outsourcing <m> services </m> company for $ 13.9 billion .
The deal will be bad `` for anyone that does n't have H-P or IBM ( IBM Quote - Cramer on IBM - Stock Picks ) on their business card , '' said IDC analyst Bob Welch .
Even IBM , the leader in the global services and outsourcing business , will ultimately feel the pressure. Gartner puts the worldwide market for IT services in 2007 at $ 748 billion .
With $ 54 billion in services revenue , IBM had 7.2 % of the market .
At $ 22 billion , EDS had 3 % , while H-P had 2.3 % .
And the merger could throw a wrench into EDS 's Agility Alliance , a group of vendors that regularly coordinate to supply hardware , networking , software and services to EDS 's outsourcing clients .
The partnership has been very effective for EDS and its partners , Welch said .