HP Poised to Buy EDS

Hewlett Packard and EDS are expected to announce a deal soon where HP will aquire the data services company for about 13 Billion. This deal will make Hewlett Packard the number two global provider of enterprise technology services (IBM is number one). HP, however, is already the world's largest manufacturer of computers with no competition from IBM in that department because IBM sold their entire computer manufacturing business to China's Lenovo some time ago.

The move is likely to allow HP to consolidate several management functions as well as enlarge their services footprint considerably. This will make them more competitive with IBM, which is the ultimate goal of the buyout of EDS.