HP wants to buy EDS, assure acronym superiority over IBM (update: it's official)

We're not usually too down with enterprise-services action, but it's hard not to notice HP's $12-13B bid to buy out rival Electronic Data Systems. EDS is best remembered for that "Herding Cats" Super Bowl commercial, but things have been rough lately -- the company just posted 62 percent decline in first-quarter profits. Still, EDS remains a leader in technology outsourcing, and HP seems to think that it'll be better able to take down Big Blue's powerhouse services and consulting group if they merge. The deal isn't done yet, but we should know how things go soon.

Update: The deal is done. HP confirmed that it's buying EDS for $25 per share or $12.5 billion. EDS will be rebranded, "EDS -- an HP company" in recognition of its own corporate blandness.

[Joe @ May 13th 2008 6:31AM]

Neither HP nor IBM nor EDS for that matter are acronyms.

[Mark Oliver @ May 13th 2008 6:49AM]

Yes they are:

Acronym: A word formed from the initial letters of a series of words. (eg, IEEE is an acronym for Institute of Electrical and Electronics Engineers).

Why do you think they are not?

[John Stracke @ May 13th 2008 7:28AM]

@Mark Oliver: Some people insist that "acronym" is reserved for pronounceable words, and use the term "initialism" for the general case. Most people don't distinguish, and, as far as I can tell, haven't in at least the past 30 years or so (in the US, at least).

Personally, I think it's a useless distinction, because there are some...strings of initials...that some people pronounce as words and others don't.

[Richy @ May 13th 2008 7:39AM]

No. HP, EDS, and IBM are all abbreviations. An abbreviation that makes a pronounceable word is an accronym. For example, PIN, or SAP (so long as you're not one of htose people who call them Ess Ay, Pee). Others form a bit of a grey (gray?) area. HMMVV or whatever the original term for a Humvee/Hummer is. I suppose Jeep (GP) falls into the latter category too.

[Chad @ May 13th 2008 9:51AM]

@Richy

You need to have a loooooong talk with the people at acronymfinder.com... They've built their whole business on what you say are not acronyms.

[ED @ May 13th 2008 7:13AM]

Emotional Doll System?

[Chad @ May 13th 2008 9:52AM]

Electronic Data Systems (founded by Ross Perot in 1962)

[Joe @ May 13th 2008 7:18AM]

An acronym is a *word* formed by taking the first letters such as SWAT or SEALs anything else is just a plain old abbreviation. LOL is an abbriviation because you say "el oh el" ROFL is an acronym because you say "rof el" and not "ar oh ef el."

[John Stracke @ May 13th 2008 7:30AM]

See, that's a good example of what I'm talking about: I would *never* pronounce it "rof ell". When two people can't objectively agree on whether something's in one category or the other, then the categories are probably not valid.

[Joe @ May 13th 2008 7:58AM]

"When two people can't objectively agree on whether something's in one category or the other, then the categories are probably not valid."

I could not disagree more. There are countless examples where things don't fit nicely in one catagory. This doesn't say anything as to the validity of the category.

ROFL probably isn't an acronym. I'm just lazy and phonetically pronounce things that I shouldn't. But you see what I'm saying with SWAT vs FBI ?

[Andrew Borem @ May 13th 2008 8:33AM]

I hate you for pronouncing it phonetically. :'(

[Micke @ May 13th 2008 8:04AM]

Mark,
HP, IBM and EDS are examples of initialism, not acronyms.
Your definition is correct, your association of that definition to these examples are in error.
For details, see: [http://www.lyberty.com/encyc/articles/abbr.html]
V/R --Micke

[ajpalm @ May 13th 2008 8:09AM]

Bring it on!!! HP outsourcing is dead anyhow.

[Joe @ May 13th 2008 8:46AM]

Wow... way to ruin it by being on-topic.

[NxP3 @ May 13th 2008 8:44AM]

Wasn't EDS owned by Ross Perot former presidential candidate, my former employer, who sold it to IBM. Then start another company called Perot Systems. Is this the same company that's being sold to take on IBM?

[madgalaxy @ May 13th 2008 9:06AM]

Perot sold EDS to GM, whom spun it off in 1996.

[Chad @ May 13th 2008 9:54AM]

Are EDS's recent losses due to expired IT contracts with GM?

[Sabi @ May 13th 2008 4:07PM]

No bad market for consulting, clients won't pay as much anymore as they used to

[Josh Havener @ May 13th 2008 8:48AM]

While all of you are pissing and moaning about acronyms, I'm kinda wondering what will happen as far as EDS employees are concerned. Both my parents work for EDS, and they're both afraid HP will clean house, starting with the most tenured employees. :(

[madgalaxy @ May 13th 2008 9:13AM]

If they are middle management and do not support an account I would be concerned. I think that not only EDSers but also employees of HP's Services organization should be concerned seeing they will be folded into EDS in Plano.

[Prince Ali @ May 13th 2008 9:28AM]

My mom also works for EDS, I hope HP doesn't do anything crazy with current EDS employees. Whats funny is she used to work for HP as a contractor and they never offered her a direct position so she left for EDS. Finally an HP employee!

[Tyler Hayes @ May 13th 2008 9:26AM]

I work for EDS on the Xerox account, imagine this one...direct competitors mayhaps?!

[The Angry Intern @ May 13th 2008 9:40AM]

I work as a contractor for EDS, we're curious how this will affect the contract we work on.

[daferris1 @ May 13th 2008 10:04AM]

I work for EDS in MK, as with any take overs there are always redundancies, so watch out EDS staff there will be cuts coming.

[Flupkear @ May 13th 2008 9:55AM]

I heard that they are going to move to a new market, instead of software EDS will be a Call Center :P

[Biggs @ May 13th 2008 3:49PM]

I work on the NMCI contract with EDS. I too am a bit worried. But, for that matter, I was a bit worried before this happened.

We've got a com call later today, so perhaps that'll ease my fears? But if not I already have my resume out to the City of Norfolk and SAIC.

[Ben @ May 13th 2008 11:20AM]

I hope EDS puts a bid in to do the Smartcard system for Philadelphia's mass transit. They ruled at the the DC Metro and the Underground, would be nice to have such a simple, well working system.

[Matt @ May 13th 2008 11:42AM]

@Flupkear EDS does do call center work.

[Trev @ May 13th 2008 3:55PM]

"better able to take down Big Blue's powerhouse services and consulting group"


I thought that's why HP bought Compaq (whom had bought DEC) ?

[Hari Shankar.V @ May 14th 2008 1:07AM]

I work for HP and work for the GM account of which EDS also is a part.

[adam hartung @ May 14th 2008 2:26PM]

Merging the lousy performing EDS with the weak HP services unit does not bode for better health. The leaders are Infosys, TCS, Cognizant and WiPro. HP needs to innovate and better develop its global delivery model - not try to see if it can "fix" the badly performing EDS. Read more at http://www.ThePhoenixPrinciple.com