Everyone is blogging endlessly about HP-EDS (okay, I’m guilty of it too). Valued at nearly $14 billion, HP’s buyout of EDS is big news. But IBM, ironically, may be making wiser moves with smaller, more targeted relationships in the managed services and software as a service (SaaS) markets.
Here’s one prime example of what I mean:
Jeff Kaplan, a SaaS and managed services thought leader at Think IT Services, has some pretty strong opinions about Hewlett-Packard’s buyout of Electronic Data Systems.
I think Jeff and I are on the same page. HP gains new scale and little overlap by acquiring EDS. On Tuesday I pointed out that EDS doesn’t do much — if anything — for HP’s SaaS and managed services efforts.
But Jeff uses far more direct language when describing HP’s SaaS and managed services shortcomings so far.
It’s a question I get asked all the time: How much is a managed service provider (MSP) business worth, and what metrics should MSPs use to set their company valuations?
I still don’t have an exact answer for readers, but here are some clues based on anecdotal info I’ve gathered plus Hewlett-Packard’s buyout of Electronic Data Systems (EDS). Read More >
If Hewlett-Packard buys Electronic Data Systems, as The Wall Street Journal is speculating, it could mean good news for managed service providers.
Think about it for a minute: Dell has already moved into the managed services market. And Microsoft is sizing up the MSP space. Likewise, Hewlett-Packard could be developing software or buying platform providers to better manage the company’s own servers and desktops — especially in small and midsize businesses.
But an EDS buyout could distract HP for years to come, leaving MSPs plenty of opportunity to manage small and midsize businesses that deploy HP gear.
