Monday, December 08, 2008

HP FORMS EDS BIZ UNIT; CEO RETIRES

December 7, 2008
The Hindu Business Line

Hewlett-Packard Co said Electronic Data Systems Corp (EDS), the services provider it purchased for $13.2 billion in August, will become a business unit Technology Solutions Group.

EDS's Chief Executive Officer, Ron Rittenmeyer, will retire on December 31, Hewlett-Packard said in a statement. Joe Eazor, a five-year EDS veteran, will run the EDS unit and report to Hewlett-Packard Executive Vice-President Ann Livermore.

The EDS acquisition doubled Hewlett-Packard's services revenue, vaulting it to No. 2 in the computer-services market behind International Business Machines Corp. The Hewlett-Packard CEO, Mark Hurd, announced plans in September to cut 24,600 workers, or 7.5 per cent of the combined staff, over the next three years.

The Technology Solutions Group, one of three main business units, sells server computers, storage devices, software and services. The group accounted for 43 per cent of Hewlett-Packard's revenue last quarter. The Personal Systems Group manages personal computers, while the Imaging and Printing Group includes printers and printing supplies.

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