 Last known EDS logo | |
| Company type | Division |
|---|---|
| NYSE: EDS | |
| Industry | Information technology services |
| Founded | June 27, 1962; 63 years ago (1962-06-27) |
| Founder | Ross Perot |
| Defunct |
|
| Fate | Acquired byHewlett-Packard later branded as HP Enterprise Services merged withComputer Sciences Corporation |
| Successor | CSC rebranded asDXC Technology (since 2017) |
| Headquarters | , USA |
Area served | Worldwide |
| Services | Computer Services |
| Revenue | US$22.1 billion (2007) |
Number of employees | 136,000 |
| Parent |
|
| Website | eds.com at theWayback Machine (archived 2007-03-29) |
| ||
|---|---|---|
Presidential campaigns | ||
Electronic Data Systems (EDS)Corporation was an Americanmultinational information technology equipment and services company headquartered inPlano, Texas, founded in 1962 byRoss Perot. The company was a subsidiary ofGeneral Motors from 1984 until it was spun off in 1996. EDS was acquired byHewlett-Packard in 2008.
Electronic Data Systems was founded in 1962 byH. Ross Perot, a graduate of theUnited States Naval Academy and a successfulIBM salesman who made first-hand observations of how inefficiently IBM's customers typically were using their expensive systems. Somewhat to IBM's chagrin, since the company wanted to sell as many computers as possible, Perot made a fortune changing this. An early success was in matching the unused computer time at Southwestern Life Insurance Company with the computing needs of rapidly expandingCollins Radio, both located in Dallas, Texas. Perot knew the inside details of both companies.[1]
In its early years, EDS was a pioneer infacilities management – becoming the IT department for many companies – as well as beginning to service banks and provide early support for bothMedicaid andMedicare in its home state of Texas.[2] Leading the effort internally wasMorton H. Meyerson, who joined the company in 1966 as the company's 54th employee. In 1967, he proposed the business model that eventually became known as "outsourcing"[3] and which led to exponential growth for EDS.
In the 1970s, EDS expanded initially into more insurance services and latercredit unions, and by 1975 revenue topped $100 million (~$451 million in 2024) and the company began bidding for work internationally. In 1978 EDS expanded into financial markets with the arrival ofautomated teller machines,electronic funds transfer and real-time point-of-sale terminals. Meyerson was named president in 1979, at which point EDS had revenue of $270 million (~$938 million in 2024), was free of debt, and had 8,000 employees.
In the 1980s, they expanded into travel services supporting payment services between travel agents and airlines represented by theAir Transport Association of America, and provided large scale contracts for the US military.
In January 1981 EDS purchasedCenturion Computer Corporation, founded as Warrex Computer Corporation in 1972,[4] a manufacturer of small business minicomputers.[5]
In 1984, the company was acquired byGeneral Motors for $2.6 billion (~$6.37 billion in 2024), with EDS becoming a wholly owned subsidiary of GM. Meyerson remained president and in 1985, the company had a presence in 21 countries with 40,000 employees. Meyerson retired in 1987. During his years of executive leadership, EDS revenue grew to $4 billion a year, and the company grew to 45,000 employees. By the end of the decade, revenue was $5 billion.
In 1985, Electronic Data Systems (EDS) began moving into its new headquarters in the Legacy development in Plano, Texas, with the campus opening in stages, and the main move completed by 1993, establishing a major corporate presence that spurred significant development in the area.[6][7]
The relocation of Electronic Data Systems from its Forest Lane location to the Legacy development in Plano in the year 1985 was initially driven by the company's growth in the late 1970s.[8]
In 1996, GM spun off EDS as an independent company.[9]
In the 1990s, in addition to its existing markets, EDS was entering the telecommunications industry and was providing IT systems in many foreign countries. They were providing information systems for global sporting events including the1992 Barcelona Olympics, the1994 FIFA World Cup, and the1998 FIFA World Cup. In 1994, they signed what was at the time the largest information technology contract withXerox for $3.2 billion (~$6.12 billion in 2024) and also bought the New Zealand banking processing companyDatabank Systems. In 1995 they purchasedA.T. Kearney, the world's 4th largest privatemanagement consulting firm. In 1996, they became an independent company again and relisted on theNew York Stock Exchange. Before the turn of the century they took part in over 1,300Year 2000 projects. As a part of the move towards being an independent company, EDS asked its employees to assist in the re-branding effort by submitting designs for a new logo. While a design (a square with the "E" in it) was selected and used for several years, it was the design of Shawn Downs, an employee in the Charlotte IPC, that was ultimately selected and utilized in the 2000 launch.[citation needed]
In 2000, EDS launched a new logo with an award-winningSuper Bowl commercial aboutherding cats.[10] Post-2000, they continued to sign long term, billion dollar contracts with organizations such asBank of America,American Airlines,General Motors,Kraft Foods and theUnited States Navy. In 2006 they sold A.T. Kearney in a management buyout.
In May 2008,Hewlett-Packard Co. confirmed that it had reached a deal with EDS to acquire the company for $13.9 billion (~$19.8 billion in 2024).[11] The deal was completed on August 26, 2008. EDS became an HP business unit and was temporarily renamed "EDS, an HP company". Ronald A. Rittenmeyer, EDS Chairman, President, and CEO, remained at the helm and reported to HP CEOMark Hurd until his retirement.[12] In December 2008, HP announced that Rittenmeyer would retire at the end of the month.[13]
As of 2008, EDS employed 300,000 people in 64 countries, the largest locations being the United States, India and the UK. It was ranked as one of the largestservice companies on theFortune 500 list with around 2,000 clients.
In September 2009, EDS began going to market asHP Enterprise Services, a name change which came one year after HP announced the acquisition of EDS, and which was a critical milestone as the integration of EDS into HP neared completion.[14]
On April 3, 2017, Hewlett Packard Enterprise Services merged withComputer Sciences Corporation to formDXC Technology, retaining significant operations from Plano, Texas, and many aspects of EDS. On June 1, 2018, DXC spun off the U.S. public services sector of the business through aReverse Morris Trust, combining withVencore and KeyPoint Government Solutions to create a new independent and publicly traded government contractor,Perspecta Inc.[citation needed]
In 2006, EDS sold their management consultingsubsidiary company,A.T. Kearney, in a management buyout and retained interests in five[citation needed] related companies:
In June 2006, EDS acquired a majority holding in MphasiS, a leading applications and business process outsourcing (BPO) services company based in Bangalore, India.
In March 2007, EDS acquired RelQ Ltd, a testing company based inBangalore, India.
In November 2007, EDS announced that it had agreed to purchase an approximate 93 percent equity interest in Saber Corporation, a leading provider of software and services to U.S. state governments, from various sellers, including majority shareholder Accel-KKR, for approximately $420 million (~$610 million in 2024) in cash. Saber became Saber Government Solutions after merging with other EDS state and local non-healthcare groups. In January 2009, it rebranded as EDS, an HP company.
In April 2008, EDS acquired Vistorm Holdings Limited, a provider of information assurance and managed security services based in the U.K. The acquisition will create one of the largest information assurance and managed security services firms in Europe.
In May 2008, HP and EDS announced that they had signed a definitive agreement under which HP would purchase EDS at a price of $25.00 per share, or anenterprise value of approximately $13.9 billion. The terms of the transaction were unanimously approved by the HP and EDS boards of directors. The transaction closed on 26 August 2008. The companies' collective services businesses, as of the end of each company's 2007 fiscal year, had annual revenues of more than $38 billion (~$55.2 billion in 2024) and 210,000 employees, doing business in more than 80 countries.
In September 2009, HP purchased Lecroix Systems and incorporated it into the infrastructure of EDS to facilitate both in-house and client network security needs.
For 2006, $9.6 billion of revenue came from the Americas (Canada, Latin America, and the United States); $6.4 billion from Europe, Middle East, and Africa; $1.5 billion from Asia-Pacific; Services' revenue was: Infrastructure $12 billion, Applications Software $5.9 billion, Business Process Outsourcing $3 billion and all other $421 million.
EDS announced the expansion of its SAP consulting practice:[15]
By collaborating with SAP on client engagement training and techniques that will drive the long-term growth of its consulting practice, EDS will further enhance its existing SAP capabilities and bring end-to-end SAP consulting and systems integration to the market by early 2008. Additionally, EDS will work closely with SAP's Global Partner and Ecosystem Group for market penetration and value-added customer offerings.
EDS operated in 66 countries,[16] with the largest numbers of employees in the cities of Detroit, Michigan, United States; Dallas-Fort Worth, Texas, US; São Paulo, Brazil; Washington, D.C., US; Toronto, Ontario, Canada; Rome and Milan, Italy; Paris, France; Adelaide, Australia; Philadelphia, Pennsylvania, US; Sydney, Australia; Blackpool, UK; Sacramento, California, US; Tyneside, UK; Madrid and Barcelona, Spain; Lisbon, Portugal; Antwerp, Belgium and Frankfurt, Germany. Other major facilities were inArgentina,Australia,Belgium,Brazil,Canada,Egypt,Germany,Hungary,India,Dublin, Ireland,Israel,Italy,Mexico,Netherlands,New Zealand,South Africa,Spain and theUnited Kingdom.
In 1992 the Plano EDS Headquarters campus comprising two eight-story buildings connected by an upper level bridge of office space was opened. The campus consists of 3,521,000 square feet (327,100 m2) of office and data center space on 270 acres (110 ha) of land. The campus included fourTier-IV data centers, a command center, four clusters of office buildings, a fitness center, a service station, four helipads and a hangar. It is the center of the 2,665-acre (1,078 ha) Legacy in Plano[17] real estate development, which EDS built.
EDS sponsored thePremier League association football teamDerby County from 1998 to 2001 and was also a second-tier sponsor at theFIFA World Cups in theU.S.A. 1994 andFrance 1998.
EDS was the title sponsor of thePGA Tour's EDSByron Nelson Championship from 2003 to 2008, played in nearbyIrving, Texas. In 2009, it became theHP Byron Nelson Championship. The tournament raises about $6 million each year for youth and family service centers in Dallas, Texas.
EDS signed a sponsorship agreement in 2007 with Nobel Media to become a Global Sponsor of the Nobel Prize Series, and with Nobel Web to become its Global Technology Services Partner. The three-year agreement enables EDS to apply its technology expertise for the benefit of the Nobel Prize Series and the organization's Web technologies, including supporting the development of content onnobelprize.org, Nobel's award-winning website.
EDS sponsoredFormula One teamJaguar Racing and was title sponsor of the1995 Australian Grand Prix.
EDS cataloged its services into three service portfolios; Infrastructure, Applications, andBusiness Process Outsourcing.[18] Infrastructure services includes maintaining the operation of part or all of a client's computer and communications infrastructure, such asnetworks,mainframes, "midrange" andWeb servers,desktops andLaptops, and printers. Applications services involves the developing, integrating, and/or maintaining of applications software for clients. Business process outsourcing includes performing a business function for a client, like payroll, call centers, insurance claims processing, and so forth.
EDS established a number ofBusiness alliances[19] with other companies through its global alliance program. The company has three types of alliances: Agility Alliances, Solution Alliances, and Technology Alliances.
The EDS Agility Alliance has worked on a range of projects, notably its Agile Enterprise. Members of the EDS Agility Alliance includeCisco Systems,EMC Corporation,Microsoft,Oracle Corporation,SAP,Sun Microsystems,Symantec, andXerox.
Most of EDS's clients were very large companies and governments that need services from a company of EDS's scale. EDS's largest clients includedRolls-Royce plc,General Motors,Bank of America,Arcandor,Kraft,United States Navy, theUK Ministry of Defence andRoyal Dutch Shell although General Motors announced plans to move 90% of its IT work back in house over the next 3 to 5 years starting in 2012.[20]
EDS formed the National Heritage Insurance Company in 1996. The creation of this subsidiary is to manageMedicare Part B services on behalf of theCenters for Medicare and Medicaid Services (CMS), formerly theHealth Care Financing Administration (HCFA). NHIC handles call center, claims processing and payment, fraud investigations, physician enrollment etc. in many states of the United States.
Another large EDS client is theUnited States Navy. In 2000, they won a contract for the creation of a US$9 billionIntranet linking the Navy and theMarine Corps, which was set to late 2006, but on March 24, 2006, was extended to 2010, adding $3 billion to the accumulated contract worth. This initiative is known as theNavy Marine Corps Intranet, or simply NMCI. In 2004, NMCI accounted for about 4% of EDS's revenue. NMCI has been called the largest private network in the world, with approximately 400,000 "seats". EDS provided the network, desktops, laptops, servers, telephones, video-conferencing, satellite transceivers, and overall management of the intranet.[21]
Following on to the NMCI type of services, EDS in March 2005 won a US$4 billion (~$6.16 billion in 2024) contract with the UK Ministry of Defence[22] to "consolidate numerous existing information networks into a single next-generation infrastructure ... The network will provide seamless interaction between headquarters, battlefield support and the front line, linking about 150,000 desktop terminals and 340,000 users in approximately 2,000 locations ..."
In February 2008 EDS signed a US$1.3 billion (~$1.85 billion in 2024) contract with the Infocomm Development Authority of Singapore, one of the largest IT projects ever undertaken in Asia. This agreement will help the Singapore government achieve a standard desktop, network and messaging/collaboration environment across its public sector by the end of fiscal year 2010.[23]
In October 2008, the U.S.Defense Information Systems Agency (DISA) signed a US$111 million (~$158 million in 2024) contract with EDS. Under this contract, EDS will: conduct worldwide security reviews, deliver certification and accreditation support, provide independent evaluation ofUnited States Department of Defense security policies, and conduct security assessments on DOD operating systems, applications, databases, and networks. DOD and EDS have had a 13-year relationship of providing DISA with a wide range of infrastructure services, hardware and software through the DISA I-Assure and Encore contract vehicles.[24]
Of historical significance, just prior to theoverthrow of theShah of Iran, EDS was the IT company that developed the Iranian social security information system. During the 1979 overthrow, several EDS employees were detained by the transitioning government of Iran, causing H. Ross Perot to undertake extraordinaryclandestine measures to get these employees out of Iran.[25] These events were recounted inKen Follett's bookOn Wings of Eagles.
In 1997 EDS signed its largest IT contract to that date, with the Commonwealth Bank of Australia for US$3.7 billion (~$6.7 billion in 2024)[35] (approx AU$5bn at the prevailing exchange rate).
EDS vaulted into the new century with a much celebrated Y2K rollover, performing more than 1,300 successful projects for clients around the world. As EDS celebrated its 40-year anniversary in 2002, the industry it created contributed more than $500 billion to the global economy – nearly half of the world's IT spending
IAOP Announces ... and Mort Meyerson have help shape ...
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