HP Enterprise Services
|Subsidiary (in some countries) of HP|
|Industry||IT services, IT consulting|
|Headquarters||Plano, Texas, USA|
Mike Nefkens, ExecutiveVice President, HP Enterprise Services
|Services||IT, business consulting and outsourcing services|
|Revenue||US$24.43 billion (2010)|
Number of employees
|Website||HP Enterprise Services|
HP Enterprise Services is the global business and technology services subsidiary (in some countries) of Hewlett Packard's HP Enterprise Business strategic business unit. It was formed by the combination of HP's legacy services consulting and outsourcing business and the integration of acquired Electronic Data Systems, which had defined the outsourcing business when it was established in 1962 by H. Ross Perot.
As of 2009, HP Enterprise Services employed 139,500 people in 60 countries, the largest locations being the United States, India and the UK. It was ranked as one of the largest service companies on the Fortune 500 list with around 2,000 clients. In 2010, HP Enterprise Services was ranked first in Corporate Responsibility Magazine’s "Corporate Citizens in Government Contracting" listing.
On May 13, 2008, Hewlett-Packard Co. confirmed that it had reached a deal with Electronic Data Systems to acquire the company for $13.9 billion. The deal was completed on August 26, 2008. EDS became an HP business unit and was renamed EDS, an HP company. Ronald A. Rittenmeyer, EDS Chairman, President, and CEO, remained at the helm and reported to HP CEO Mark Hurd until his retirement.
As of 23 September 2009, EDS began going to market as HP Enterprise Services, a name change which came one year after HP announced the acquisition of EDS and was a critical milestone as the integration of EDS into HP neared completion.
For 2006, $9.6 billion of revenue came from the Americas (Canada, Latin America, and the United States); $8 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.
HP ES operates in 60 countries, centered in the metropolitan areas of Dallas-Fort Worth; Detroit; Des Moines and Clarion, Iowa; Salt Lake City; Indianapolis; Winchester, Kentucky; Tulsa, Oklahoma; Boise, Idaho; and Northern Virginia in the United States. Other major facilities are in Argentina, Colombia, Costa Rica, India, Brazil, Mexico, Canada, Egypt, Germany, the United Kingdom, Australia, New Zealand, Hungary, Spain, Israel, South Africa, Italy, Malaysia and the Philippines.
HPES's Plano, Texas campus is located about 20 miles (32 km) north of downtown Dallas. The campus consists of 3,521,000 square feet (327,100 m2) of office and data center space on 270 acres (1.1 km2) of land. It is the center of the 2,665 acres (10.78 km2) Legacy in Plano real estate development, which EDS built.
HP Enterprise Services catalogs its services into three service portfolios which are,
- Infrastructure Technology Outsourcing (ITO) - includes maintaining the operation of part or all of a client's computer and communications infrastructure, such as networks, mainframes, "midrange" and Web servers, desktops and laptops, and printers.
- Applications Services - involves the developing, integrating, modernizing, and/or maintaining of applications software for clients
- Industry Services, including Business Process Outsourcing (BPO) - addresses the core business challenges of clients in five key industries: healthcare, transportation, communications, government, and financial services, among others. BPO group is an integral part of the portfolio, which involves performing a business function for a client, like payroll, call centers, insurance claims processing, and so forth.
HP Enterprise Services is a key implementer of the "Instant-On Enterprise." This HP Enterprise Business initiative seeks to highlight the fundamental shifts in the way information technology is being used to meet changing business models and the growing role of technology to drive business decisions and help organizations achieve economic growth, improve efficiency, and to further the development of society through the use of technology. In a larger context, the initiative seeks to help forward-thinking companies and government agencies have a more evolutionary, business-driven approach to how they deliver IT services, including solutions to modernize, transform, secure, and maximize the use of technology.
HP Enterprise Services has established two levels of business alliances relationships: Agility Alliances and Technology Alliances.
The Agility Alliance brings together strategic solution providers to build and deliver end to end IT solutions for HP ES customers. The list of partners consists of: Deloitte, Microsoft, Oracle Corporation, PricewaterhouseCoopers, SAP, and Symantec.
This effort is supported by the Top Gun Program, which enables HP Enterprise Services technical personnel to dedicate three months of their time on joint projects with an Agility Alliance partner on a key technology problem, to create an innovative customer solution.
The Technology Alliance brings together technology partners focused on collaborating with HP ES to develop, implement and jointly market services. These technology partners are: Citrix, Red Hat, Tibco, and VMware.
HPES's clients are located around the globe and many are very large companies and governments that need services from a company of HP's scale. Some of HPES's largest clients include: American Airlines, Rolls-Royce plc, General Motors, Bank of America, FEMSA, Commonwealth Bank, Kraft, United States Navy, the UK Ministry of Defence, IDA, Royal Dutch Shell, and NASA.
- In February 2008, HP Enterprise Services signed a US$1.3 billion 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.
- In July 2010, General Motors renewed a multi-year $2 billion contract with HP Enterprise Services to manage its applications and infrastructure. Under the new deal, HP will provide network, workplace, mainframe management, applications and systems integration services for GM’s worldwide operations. HP had already been providing most of these services for GM.
- In March 2011, HP Enterprise Services announced that Coca-Cola FEMSA signed a five-year technology outsourcing services contract valued in excess of $100 million to build and manage an HP Converged Infrastructure. This contract will add more than $100 million to HP’s existing Coca-Cola FEMSA relationship, which began in 2000. Under the terms of the agreement, HP and Coca-Cola FEMSA will consolidate 348 locations to a single data center in Mexico and migrate business-critical SAP applications as well as server monitoring and management to HP Best Shore locations in Brazil and Argentina.
- In April 2011, HP Enterprise Services announced that it has been chosen for a single-award firm-fixed-price, indefinite delivery/indefinite quantity contract worth up to $2.5 billion by NASA. As a part of NASA’s Agency Consolidated End-User Service (ACES) Program, HP will modernize NASA’s entire end-user infrastructure by delivering a full range of personal computing services and devices to more than 60,000 users. The modernization is expected to deliver significant productivity gains and cost savings to NASA.
HP Discover customer event
In 2011, HP Enterprise Business, along with participating independent user groups, combined its annual HP Software Universe, HP Technology Forum and HP Technology@Work into a single event, HP Discover. There will be two HP Discover events annually, one for the Americas and one for Europe, Middle East and Africa (EMEA). HP DISCOVER 2011 Americas is slated for June 6–10, in Las Vegas at the Venetian/Palazzo. The event will offer approximately 200 software-related sessions on application transformation, Converged Infrastructure, information optimization, mobile devices, webOS, global data centers, security, hybrid delivery and cloud computing. HP anticipates approximately 10,000 customers, partners and IT thought leaders will attend HP Discover 2011 in Las Vegas and approximately 5,000 will attend the EMEA event. The Americas conference will have tracks designed for several industries including automotive and aerospace; communications, media & entertainment, energy, financial services, healthcare and life sciences, high tech and electronics, public sector, retail and consumer goods, and transportation and logistics. Nearly 800 sessions, hands-on training and exhibits will feature all areas of the HP Enterprise Business portfolio including servers, storage, networking, software and services.
The HP Discover 2011 event in EMEA is slated to take place in Vienna, Austria, at the Reed Exhibitions, Messe Wien Congress Center, on November 29 through December 1, 2011.
Employee salary cut controversies
- In March 2009, some EDS employees, based in the USA and Puerto Rico, were informed that their salaries would be cut 10% during the April 2009 pay periods, albeit with no reduction to drop a salary below $40,000 a year. This cut is in addition to a 5% cut announced in February and was limited to EDS employees, rather than all of HP. The announcement indicated pay would be restored to the February pay-cut levels (10% for management, 5% for salary employees, 2.5% for hourly workers) in May 2009.
- In July 2009, it was announced that HP would be making further "salary adjustments" to their acquired EDS staff, to bring EDS salaries in line with HP salaries. In almost all cases, affected employees were informed that their salaries would be reduced, sometimes 30% or more, within the next 1–2 years. These adjustments would be permanent in nature. HP confirmed the cuts, indicating that 20% of the workforce would be affected.
- On August 13, 2009, the Dallas NBC affiliate reported that EDS employees were being warned not to talk to the media about the salary cuts. These statements, made by Andy Mattes, the senior vice president of EDS Americas, were quoted from a podcast of the town hall and broadcast in the news report. "People have been leaking stuff into the news," Mattes said. "I can only urge you to keep the conversation that we're having here amongst ourselves. The more we can keep it amongst ourselves, the more open we can talk. If we have to get the feeling that everything that we do will show up in the newspapers tomorrow, you'll get whitewashed statements." HP spokesmen confirmed that some jobs would be relocated to other offices in Texas.
- In November 2010, the new HP CEO, Leo Apotheker, announced that HP was giving back the pay cuts that former CEO Mark Hurd put in place the previous year, returning the 401-(k) to a fixed match, and was increasing funding for employee awards and raises. The "give-back" was strictly on the initial 5% taken, not on any of the additional cuts.
- "HP Enterprise Services". 2010-11-02. Retrieved 2010-11-02.
- "BEST Corporate Citizens in Government Contracting". 2010-06-29. Retrieved 2010-10-25.
- Paul, Franklin (2008-05-13). "HP to buy EDS for $12.6 bln in challenge to IBM". Reuters. p. 4. Retrieved 2008-05-13.
- "HP Press Release: HP to Acquire EDS for $13.9 Billion". Retrieved 2010-11-29.
EDS - an HP company
- "EDS, an HP Company, Becoming HP Enterprise Services". Retrieved 2009-09-23.
- Legacy in Plano
- Techsoup.com: “Infrastructure Outsourcing. Clear communication and a good working relationship are key.” Michelle Murrain and Douglas Cohen. February 6, 2003.
- HP News Release: “HP Delivers the Instant-On Enterprise for Business and Government.” November 2, 2010.
- HP Enterprise Services Agility Alliance
- HP Enterprise Services Technology Alliance partner
- ZD Net: “HP Enterprise Services renews deal with GM.” Larry Dignan. July 21, 2010.
- Storage Newsletter: March 29, 2011.
- CRN News: “HP Services Scores $2.5 Billion NASA Deal, SAP Cloud Certification.” Kevin McLaughlin. April 28, 2011.
- Business Wire: “HP Unveils Premiere Client Event - HP Discover Americas, Nov. 16, 2010
- HP News Release:“HP Unveils Premiere Client Event – HP Discover Americas; Attendee celebration concert to feature Paul McCartney.” Nov. 16, 2010.
- Official HP Discover Event Web site.
- HP Discover 2011 Las Vegas Session Catalog
- Taume.com: “HP Unveils Premier Client Event - HP DISCOVER EMEA.” December 2, 2010.
- "HP skims another 10% off some EDS workers' pay packets". The Register. 2009-03-16. Retrieved 2009-03-16.
- "HP imposes more salary cuts for EDS employees". ZDNet. 2009-03-16. Retrieved 2009-03-16.
- "HP Warns Worried EDS Workers: Don't Go to Media". The Dallas Morning News. 2009-08-05. Retrieved 2009-08-14.
- "HP Warns Worried EDS Workers: Don't Go to Media". KXAS. 2009-08-13. Retrieved 2009-08-14.
- HP Employees Rejoice As New CEO Returns Pay To Previous Levels
- HP Enterprise Services (official website)