Wednesday, September 17, 2008
HP ~ The Good, The Bad & The Ugly
Hewlett-Packard is an industry making changes. Get a load of their current business moves:
HP and EDS today announced that they have signed a definitive agreement under which HP will purchase EDS at a price $13.9 billion. EDS, a $22 billion-plus global technology services, outsourcing and consulting leader that pioneered the IT outsourcing industry.
The transaction is expected to close in the second half of calendar year 2008 and to more than double HP's services revenue, which amounted to $16.6 billion in fiscal 2007.
Although that press release sounded like such a wonderful, happy economical success story, 24,600 HP employees will lose their jobs. Hey! The purchase price of $13.9 billion had to come from somewhere!
EDS does all kinds of private contracting for data management. Here is a sampling of the industries EDS serves:
• The Military
• Homeland Security
• Revenue & Tax
• Capital Markets
• Aerospace & Defense
• Medical & Health Insurance
You get the gist. It would appear EDS, and now Hewlett Packard are in bed with the government. If the Government outsources their IT items to the new conglomerate, it could potentially hold all the info of importance, maybe even assist in warrantless wiretapping, IT overstepping, and improper sharing of information that is supposed to be confidential. With IT hands in the pie of finances, health information, etc, there could be some over the top kind/illegal networking for entities like Homeland Security. I'm just saying the information age sharing business has it's down sides too. Stranger things have happened.