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HP to acquire EDS - No surprise really - Game shifter for IBM and HP

HP are looking to acquire EDS for about 13B dollars, this is not surprising, HP needs the scale in the services business, and it needs incremental momentum in the outsourcing space that it could not get on its own, I am sure millions of pages will be written on this, but from my point of view, it is not a bad fit, though partnering wise EDS is definitely in the Dell/Sun side of the game, I can see benefits around scale, it also allows HP to be a genuine threat against IBM, it may be the major transaction that I have been waiting for many years to give scale to the business.
From a business point of view, overlap between EDS and HP services is not that high, they have played in different markets.
I will have more on this as the days come to pass

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