The tech services business has been hot for the last year or so, since H-P bought IT outsourcing giant EDS in May for more than $13 billion. H-P and IBM, the market leader in services, are now going head to head for big outsourcing deals.
SAP’s new CEO Leo Apotheker says the software giant will focus on its core software business, even as its rivals expand beyond their traditional boundaries.
The latest trend in the tech industry–at least among its biggest companies–is to offer products and services that used to be provided by partners.
Wednesday would be a really bad day for Hewlett-Packard Chief Executive Mark Hurd to break his winning streak. Central bankers around the globe are sweatily trying to revive faltering banks. Luckily, Hewlett-Packard has a man at the top now who could be called Maalox in human form.
Oracle has enjoyed considerable success by rolling up the software side of the the now-mature client-server model of corporate computing. With its $13.9 billion acquisition of sluggish outsourcing giant EDS, Hewlett-Packard is playing the same game on the services side. It’s buying vast tracts of data-center space in which run the computers and other IT machinery that power the operations of lots of large companies and government agencies. The addition of EDS more than doubles the size of HP’s services business, giving it a scale closer to that of the leading IT outsourcing company, IBM.
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