Hewlett Packard Enterprise Services

Updated on Sep 23, 2024

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Type Subsidiary Website www.hpe.com/services Founded 1962		Revenue US$34.9 billion (2010) Number of employees 136,000

Industry IT services, IT consulting Key people Meg Whitman, CEO, Mike Nefkens, Executive Vice President Services IT, business consulting and outsourcing services Headquarters Plano, Texas, United States Parent organizations Hewlett-Packard, Hewlett Packard Enterprise

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.

History

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. In 2010, HP Enterprise Services was ranked first in Corporate Responsibility Magazine’s "Corporate Citizens in Government Contracting" listing.

Locations

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.

Services

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.

HP Enterprise Services promotes products of HP Enterprise Business, sharing its marketing programs.

Partners

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.

Clients

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.

Impact of HP Enterprise Services on its Clients and Employees

Hewlett Packard Enterprise Services helps make it easier for clients and employees to, more productively, use their technological systems. “We make IT environments more efficient, productive and secure, enabling fast, flexible responses to a rapidly changing competitive landscape” (HPE.com). This subsidiary works to build an infrastructure that meets the needs of a changing market. It includes products, support services and strategies for people who need to use their technology efficiently.

References

Hewlett Packard Enterprise Services Wikipedia

(Text) CC BY-SA

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