CFO Expectations of IT


Follow us





HP-EDS UK boss on BSkyB, the merger and building an alternative to IBM

In my experience at least, EDS always had a tendency to keep itself to itself. That's unsurprising as when it did appear in the press it was usually on the sticky end of stories relating to problematic public-sector projects.

However, since being acquired by HP the services giant may be putting its head above the parapet a bit more. I hope so as the group, now renamed as HP Enterprise Services brings in about $4bn in annual revenues in the UK alone and is responsible for some of the most important government and public-sector contracts in the country.

So I was delighted to take up an invitation to meet a 15-year veteran of the former EDS, MD and VP Craig Wilson earlier this week for what turned out to be a remarkably frank discussion.

Keeping powder dry, I'd saved questions about the recent verdict in the BSkyB court case and its remarkably high penalties for last but Wilson was forthright throughout.

What did he make of the case?

"It's a bit like yesterday's chip paper at EDS," he said. "The whole IT industry was in the middle of year 2000 [when the disputed agreement was made]. It was 'go, go' and it was crackers, the end of the dot-coms period. The people involved were exited even before EDS was a glint in HP's eye. We're obviously pleased that of the five matters raised, the judge rejected four of them."

As for the notion that the case will represent a landmark decision, Wilson believes that this comes from a "slightly frenzied" legal community.

"The IT industry of 2000 is not the IT industry of 2010. We have far more controls in place. There is very close scrutiny of anything that is going to the client. It has been transformed by all comparison. Clients are much more sophisticated ordering in standard ways. That wasn't the case in 2000 [and] the maturity is irreversible."

Turning to the mega-merger with HP, I asked Wilson whether he had shed a tear for the passing of the EDS brand and what had been his initial reactions to the combination.

"Let's face it, EDS wasn't in great shape, even though we were the second biggest IT services company in the world," he said. "We were turning in five or six per cent margins and aspired to generating $1bn in free cashflow which simply wasn't enough. HP had the opposite problem: could it fund good stuff to do with the huge amount of cash it generated? So on the one hand there was this apprehension as to where you were going to end up, and on the other [the feeling that] something had to change.

"In some markets EDS had become quite a tired brand. Whereas HP has a reputation as being able to do business with, EDS had a reputation for being quite difficult to do business with. With an HP badge, I'm finding people want to talk about things. For CIOs, what's attractive is having a viable alternative to IBM. The current challenge is to overhaul IBM. In the UK we're already ahead and we head into 2010 with a tailwind. [The plan is to sell] services in a serious way to people buying HP technology and vice versa. [HP can support] Top 1000 clients in a full-service way, the way they've got used to at IBM."

And what of the integration process?

"The integration is pretty much done and dusted. The systems we run the firm on are all integrated. [In terms of processes and company culture] it's a cross-fertilisation. If it wasn't in both directions I probably wouldn't still be here. It would have been wrong for HP to buy EDS and run it as HP."

Key to maintaining the value of EDS is making sure that "everything runs through the client" in a single structure, he says. "The bigger clients didn't want rogue spending all over the shop."

In part 2 of this interview, Craig Wilson talks about how to men bridges between services firms and government/public sector and "a sea change" coming to the services sector

In part 3, he talks about the likely effects on state IT spending in the wake of the imminent general election  


Add to Technorati Favorites


Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.


CIO White Papers

The cloud 2015 vision

Cloud computing is an important transition and a paradigm shift in IT services delivery - one that promises large gains in efficiency and flexibility at a time when demands on data centers are growing exponentially. The tools, building blocks, solutions, and best practices for cloud computing are evolving and challenges to deploying cloud solutions need to be considered.

The consumerisation of technology

iPads are the must-have fad. Android is the rising mobile platform -- Everywhere you turn, the news is about personal, smart, mobile devices and their impact on business and on IT.

Big data analytics

Broadly, there are two ways to think of Big Data technologies. The first is as an extension of what many organisations are already doing with business analytics. Gaining insight from business information is something that has been happening for decades, but the challenges and opportunities are now greater than ever before.

Virtualisation: benefits, challenges and solutions

The majority of organisations have already implemented server virtualisation and most intend to implement additional server virtualisation during the next year. The primary factors driving the movement to deploy server virtualisation are cost savings and the ability to dynamically provision and move VMs among physical servers. There are however, a number of significant challenges associated with server virtualisation.


CIO UK - Business - Technology - Leadership

On Demand Webcast
Analyse Data In Real Time


Increasingly businesses require the ability to analyse information quickly. Find out how to handle growing data volumes more efficiently while reducing the cost of managing your organisation's IT landscape

Watch now

SAP Logo

What do CFOs expect from IT?


Watch our sister publication's latest webcast.
Hear a case study from the Guardian News and Media's Technology Director, Andy Beale, and join the discussion on the role of the CFO in technology innovation.

Watch Discussion

CFO World webcast in assocation with Google

On Demand Webcast:
Maximising business flexibility with virtualisation


Register for this on demand webcast and find out how technologies can enable cost effective and secure virtualisation from your server deployments.



Watch now

Dell VMware logo


CFO Expectations of IT


* *