- Ross Perot founded EDS in 1962 and took it public in 1968
-- but retained 50% of the stock. He sold EDS 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" GM contracts
were 31% of EDS revenue at that time.
- Dick Brown, former
CEO of Cable & Wireless and H&R Block, named EDS chairman
and CEO in Dec. 1998. "Within weeks Brown cut 5,200 jobs."
- Fortune in Feb 2003: "EDS has a stock that's been
flattened." Brown: "I have a very expensive wife."
- Michael H. Jordan,
former chairman of CBS and PepsiCo, named EDS chairman and
CEO in Mar 2003.
- The stock dropped
from $76 in 2000 (source)
to $19 in 2007.
- 2007 Workforce Alignment. From the
2007 EDS Annual Report: "We increased the number
of employees in Best Shore locations from approximately
32,000 persons at the end of 2006 to approximately 41,000 at
the end of 2007... Our 2007 initiatives to increase
capabilities in Best Shore locations included the transfer
of certain internal administrative functions... We expect
to significantly increase our overall investment in
workforce alignment in 2008 compared to 2007. [Boldface
added] During the third quarter of 2007, we announced
an early retirement offer ("ERO") for approximately 12,000
U.S. employees. Approximately 2,400 employees accepted the
ERO. Employees accepting the offer will receive enhanced
retirement benefits payable through normal payment options
under the EDS Retirement Plan."
- 2007: EDS' last full year in business: 1% increase in
year-to-year revenue worldwide.
"As of January 31, 2008, EDS and its subsidiaries employed
approximately 139,500 persons in the United States and 65
other countries around the world."
(2007) Annual Report [Discussion of the three
major linens of business, competition, and risk factors --
- 2008: In the last EDS quarterly report before the sale was
announced in May 2008:
Three months ended March 31, 2008: Revenues $5,365M;
Net income $62M
Same quarter the previous year: Revenues $5,224M; Net income
In short, revenues up by 3%; net income down by 62%
- EDS stock peaked at $72 in 2001 but was down
to $19. The EDS board of directors negotiated the sale to HP. HP
paid $25 per share in cash, $13.9 billion -- a 32% premium.
- Joint announcement by EDS and HP management on May 13,
- Approved on Jul
31, 2008 by EDS shareholders owning 98.8 percent of
completed on Aug 26, 2008. Details and HPAA
advice for former EDS employee shareholders
- "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 employees."
- At completion of the sale on Aug 26, 2008, EDS was
temporarily structured as a wholly-owned subsidiary called "EDS,
an HP Company."
On Sep 23, 2009, it was
renamed "HP Enterprise
- 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
- On Oct 21, 2015, Hewlett-Packard Company spun off
Hewlett Packard Enterprise (no hyphen; singular.)
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
- "What is an EDSer?
An EDSer is a person that goes anywhere, anytime, 24 hours a
day, 7 days a week, to make sure that EDS is the finest
computer service company in the world and that nobody beats
us in competition." --Ross Perot, 1986
- 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. I’ve been rather
successful and I owe a lot of it to the training I got at EDS."
Online memoir by Alan Canton
- WAAPDSUT. WAA (written
by EDS corporate software in Dallas) P (program) DSUT (dataset
utility.) Originally written for DOS in the '60s, this utility
was the most heavily used dataset printing/dumping/comparing/
repairing etc. tool used by EDS systems engineers.
Discussion on IBM Mainframe Forum
- "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.
“Don’t focus on the sale. Don’t focus on what you are going to
get or what the company is going to get. Focus on the problem
that needs to be solved. If you can do that, the money will take
care of itself. Let the money be the byproduct of what you do,
not the goal. ... It’s that simple.”