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HP-EDS brings pressure on IBM for Satyam (2)   15-May-08 23:55Tracked by (0)  
Posted by:   spicy on ( 15-May-08 23:55 )
Price : BSE: Rs 483.90 ( -3.43 % ), NSE: Rs. 484.75 ( -3.03 % )
Forget about the high court battles and sentimental calls.

Here is what adds fuel to IBM talks about Satyam buy.

HP takeover of EDS realigns IT stratergy for many. Even IBM, the leader in the global services and outsourcing business, will ultimately feel the pressure. Gartner puts the worldwide market for IT services in 2007 at 8 billion. With billion in services revenue, IBM had 7.2% of the market. At billion, EDS had 3%, while H-P had 2.3%.

the merger will mean more challenges for both IBM and Accenture, which had 2.8% of the market in 2007.

For IBM, the merger would create an aggressive, diversified competitor nearly on IBM\\`s scale. IBM and EDS compete especially in the government sector.

IBM could now look at some purchases, smoke spreading that satyam in talks behind scenes. It will be good news for investors.
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