Can HP Whip EDS into Shape?

The much-heralded purchase of Electronic Data Systems by Hewlett-Packard has its critics. But CEO Hurd insists it is the right choice

When Hewlett-Packard (HPQ) announced its $13.9 billion acquisition (, 5/13/08) of tech services giant Electronic Data Systems (EDS) on May 13, pundits heralded it as a bold move by HP Chief Executive Mark Hurd. In one stroke, it seemed, he had put HP on a more equal footing with market leader IBM (IBM) in the fiercely competitive tech services business. Together, HP and EDS will create a services giant with $38 billion in revenues, compared with IBM's $54 billion.

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