EDS history and culture (Electronic Data Systems Corporation) (Updated
Oct 9, 2020.) Comments about this page to:
See all of
HPAA's information for EDS alumni -- whether or not you ever worked for HP:
- For openings posted by recruiters searching
for EDS background, benefits and career discussions related
to EDS service, and EDS history -- join the
EDS Alumni LinkedIn Group.
- Two active independent EDS
alumni groups on Facebook:
(Includes an album of class photos of SED and other courses.)
Operated by Howard Greif:
Key: Legal successor and corporate names.
- HPInc is the legal successor to EDS. Responsibility was
not transferred to successor companies such as Hewlett Packard Enterprise or DXC. HPInc has
responsibility for any
commitments to former EDS employees. This includes
any retiree health coverage, pension, 401(k), etc. plans.
(Does not depend on whether the employee's last business unit ended up in HPInc or Hewlett Packard Enterprise in the
HP acquired EDS for $25.00 per share in cash -- $13.9
billion. "EDS had approximately 140,000 employees as of
12/31/2007. HP had approximately 172,000 total employees as
of 10/31/2007, including more than 70,000 services
- When EDS was acquired by HP on Aug 26, 2008, it was
temporarily structured as a wholly-owned subsidiary called "EDS,
an HP Company."
On Sep 23, 2009, it was
renamed "HP Enterprise
- On Oct 21, 2015, Hewlett-Packard Company spun off
Hewlett Packard Enterprise (no hyphen; singular.)
EDS ownership history:
- Ross Perot founded EDS in 1962, took it public in 1968,
and sold it to General Motors in 1984. Perot and his family
received more than $1 billion in cash and GM stock. As a GM board member,
he attempted to reform GM's management and culture.
The company bought out Perot's GM shares at twice the market
price in 1986. Perot then formed EDS competitor Perot
Systems, which he sold to Dell in 2009.
- At the time of the acquisition, GM had "...more than 100
locations in the U.S. where sizable data processing staffs
are employed ...a total of more than 2,000 MIPs [sic] computing
capacity in the U.S. as compared to EDS' approximately 150
MIPs... We need EDS professionals in all categories to join
our team at GM... people who are willing to respond quickly
and be on-site at a GM location immediately; perhaps as
early as tomorrow or next Monday. You should also be willing
to relocate... If you have the desire and drive to be part
of the EDS/GM team, please complete the attached form and
give it to your manager today." --July 22, 1984 memo to EDS
- GM spun off EDS in 1996. "GM's
complex relationship with IT"
- The stock plunged
from $68 in 2001 (source)
to $19 in 2007.
- 2007: EDS' last full year in business: 1% increase in
year-to-year revenue worldwide (page AR-1.)
Last Annual Report
- EDS stock dropped from a high of $30 in the first quarter
of 2007 to a low of $19 in the fourth quarter (page AR-5)
Last Annual Report
- The EDS board of directors negotiated the sale to HP. Approved by shareholders owning 98.8 percent of the stock.
- HP paid $25.00 per share to the owners of record as of Aug 26,
2008. ($13.9 billion -- a 32% premium over the market price of
$18.86 before announcement. NYTimes
) Details and HPAA
advice for former EDS employee shareholders
- EDS had 140,000 employees; HP had 172,000 total employees,
including 70,000 services employees.
- 2012: "HP has provided support services to Medicare and
Medicaid clients for 44 years, handling 35 percent of all
Medicare and Medicaid claims in the United States and
processing 2.4 billion healthcare transactions annually,
including 1 billion in healthcare claims. HP provides an
array of technology services for CMS and Medicare
contractors, including data center services, maintenance of
the Medicare Part B system and non-base system support."
HP press release
article summarizing the HP Breakup.
- HPAA's unofficial
- 2017: DXC formed from merger of CSC with HPE's enterprise
- 2020: DXC sells U.S. State & Local Health and Human
Services business to private equity company Veritas Capital
for $5 billion in cash. New company named Gainwell
"Eagles don't flock, you have to find
them one at a time." Ross Perot
- The "Grass Roots Wisdoms" are listed and discussed in a
short book by former EDS executive coach Gary Hassenstab.
- "A Unique One-Time Opportunity" by Eric O'Keefe; Copyright
Morton H. Meyerson. More than 50 EDSers share the story of the
history and culture through 1970. CreateSpace Independent
Publishing Platform (October 2012) ASIN:
- "Liberation Management" by Tom Peters. Chapter: "World's
Largest Project Organization in the World's Zaniest Industry."
Knopf (1992) ASIN:
- "My Experience In The House That Perot Built. Ive been rather
successful and I owe a lot of it to the training I got at EDS."
Online memoir by Alan Canton
- "The GM system is like a blanket of fog. I come from an
environment where, if you see a snake, you kill it. At GM, if
you see a snake, the first thing you do is go hire a consultant
on snakes. Then you get a committee on snakes, and then you
discuss it for a couple of years. The most likely course of
action is -- nothing. You figure the snake hasn't bitten anybody
yet, so you just let him crawl around on the factory floor. We
need to build an environment where the first guy who sees the
snake kills it. "
1988 interview with EDS founder Ross Perot in Fortune --
four years after GM bought EDS. Nine months later, GM bought out
Perot's GM shares at twice the market price.
$14M Dallas symphony hall donation from Perot. "Don't name
it after me."
D Magazine article.
Classic EDS ads:
- "Cat Herders" (Super Bowl, January 2000)
- "Airplane" (Thanksgiving, 2000)
- "Running of the Squirrels" (Super Bowl, January 2001)
Detailed article about the first ad, the campaign, awards, and
Marketing case study:
EDS history. 2012 article series in Dallas Morning News
-- "The lost legacy of EDS" [Limited number of free articles.]
Part 1: The Perot Era. "In the beginning, 1962, there was
one very ambitious employee, Ross Perot."
Part 2: The GM Era. "In many ways, the dozen years of the GM
era were the best and worst of business times for EDS."
Part 3: The era of decline. "After spinoff from GM, EDS
days of independence were numbered."
Ross Perot obituaries:
Books about EDS:
- "My Life &
The Principles for Success" by Ross Perot. Summit
(September 1996) ISBN-10:
- "Perot: An Unauthorized Biography" by Todd Mason.
McGraw-Hill (April 1990) ISBN-10:
- "Irreconcilable Differences: Ross Perot Versus General Motors"
by Doron P. Levin. Little Brown (March 1989) ISBN-10:
- "On Wings of Eagles" by Ken Follett. Semi-fictionalized
account of effort to rescue two EDS executives imprisoned in
Iran. Morrow (September 1983) ISBN-10:
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