Hewlett Packard Enterprise Services
|Industry||IT services, IT consulting|
|Headquarters||Plano, Texas, USA|
|Mike Nefkens, Executive Vice President|
|Services||IT, business consulting and outsourcing services|
|Revenue||US$34.9 billion (2010)|
Number of employees
Hewlett Packard Enterprise (2015–present)
HP Enterprise Services is the business and technology services subsidiary of the Hewlett Packard Enterprise strategic business unit. It was formed by the combination of Hewlett-Packard'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.
On May 24, 2016, Hewlett Packard Enterprise announced that it will split its Enterprise Services division and merge it with Computer Sciences Corporation to create a pure IT services company. The new company will be named DXC Technology.
On May 13, 2008, Hewlett-Packard 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.
By September 2009, EDS began calling itself HP Enterprise Services, a name change which came one year after HP announced the acquisition. By the end of 2009, HP Enterprise Services managed more than 380,000 servers 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.[when?] In 2010, HP Enterprise Services was ranked first in Corporate Responsibility Magazine’s "Corporate Citizens in Government Contracting" listing.
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 Bulgaria, Romania, Argentina, Colombia, Panama, Costa Rica, India, Brazil, Mexico, Canada, Egypt, Germany, the United Kingdom, Australia, New Zealand, Hungary, Slovakia, Spain, Israel, South Africa, Italy, Malaysia and the Philippines.
HP ES'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.
Its services include:
- 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 & Business Services (ABS) - 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 involves performing a business function for a client, like payroll, call centers, insurance claims processing, and so forth.
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HP Enterprise Services established business alliances relationships. The Agility Alliance ran from 2004 through about 2011. It included Deloitte, Microsoft, Oracle Corporation, PricewaterhouseCoopers, SAP AG, and Symantec. The Technology Alliance (which also ran through 2011) partners included Citrix, Tibco, VMware and Xerox.
HP ES's clients include very large companies and governments that need services from a company of HP's scale. In February 2008, HP ES signed a US$1.3 billion contract with the Infocomm Development Authority of Singapore, one of the largest IT projects ever undertaken in Asia. In July 2010, General Motors renewed a multi-year $2 billion contract with HP ES to manage its applications and infrastructure. HP continued to provide network, workplace, mainframe management, applications and systems integration services for GM’s operations. In March 2011, HP ES announced that Coca-Cola FEMSA signed a five-year technology outsourcing services contract valued in excess of $100 million to build and manage a data center with HP equipment. HP’s Coca-Cola FEMSA relationship began in 2000. Under the terms of the agreement, 348 locations consolidated to a single data center in Mexico and SAP applications as well as server monitoring and management migrated to Brazil and Argentina. In April 2011, HP Enterprise Services announced it was chosen for a contract worth up to $2.5 billion by NASA. As a part of NASA’s Agency Consolidated End-User Service program, HP modernized NASA’s personal computing services and devices for more than 60,000 users.
HP Discover 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.
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.
- "CSC Announces Merger with Enterprise Services Segment of Hewlett Packard Enterprise to create a Global IT Services Leader". Press release. May 24, 2016. Retrieved November 4, 2016.
- "DXC Technology Revealed as Name for Combined CSC and HPE Enterprise Services Business Following Merger Completion | Business Wire". www.businesswire.com. Retrieved 2017-02-15.
- 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". Press release. HP. Retrieved November 4, 2016.
- "HP Enterprise Services". Old web site. Archived from the original on December 3, 2009. Retrieved November 4, 2016.
- "BEST Corporate Citizens in Government Contracting" (PDF). 2010-06-29. Retrieved 2010-10-25.
- "About Us: A Spirit of Community". Development web site. Legacy in Plano. Archived from the original on February 4, 2014. Retrieved November 4, 2016.
- Techsoup.com: “Infrastructure Outsourcing. Clear communication and a good working relationship are key.” Michelle Murrain and Douglas Cohen. February 6, 2003.
- "HP Delivers the Instant-On Enterprise for Business and Government". Press release. HP. November 2, 2010. Retrieved November 4, 2016.
- "Collaboration for Better Business Outcomes". Agility Alliance web page. Archived from the original on December 19, 2011. Retrieved November 4, 2016.
- "Technology Alliance". Partner web page. Archived from the original on August 9, 2011. Retrieved November 4, 2016.
- "Singapore Government Announces a S$1.3 Billion SOEasy Program Award to EDS-led oneMeridian Consortium". Press release. EDS. February 28, 2008. Archived from the original on January 13, 2009. Retrieved November 4, 2016.
- Larry Dignan. "HP Enterprise Services renews deal with GM". ZDNet. Retrieved 2 July 2015.
- "StorageNewsletter » HP Got $100 Million Contract With Coca-Cola FEMSA". Retrieved 2 July 2015.
- Kevin McLaughlin. "HP Services Scores $2.5 Billion NASA Deal, SAP Cloud Certification". CRN Cloud News. Archived from the original on April 30, 2011. Retrieved November 4, 2016.
- "Discover 2011". Promotional web site for event. Archived from the original on July 12, 2011. Retrieved November 4, 2016.
- "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.
- Randy McIlwain (August 5, 2009). "HP's Huge Salary Cuts Forcing Out Old EDS Employees". The Dallas Morning News. Retrieved November 4, 2016.
- "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". Business Insider. 22 November 2010. Retrieved 2 July 2015.
- HP Enterprise Services (official website)