HP Buying EDS With Its Head in the Clouds

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Five years ago, if Hewlett-Packard bought EDS, everyone would’ve thought it was pretty much like when IBM bought PwC — a play to create a powerful data processing consulting business that could coexist with a computer hardware business. In fact, that’s been a great model for IBM.
But with HP today buying EDS for $12 billion, the smart thinking goes in a different direction. It’s looking like a red-hot area going forward for IBM, Amazon and Google will be so-called cloud computing — a.k.a. hardware as a service.
If you’re a startup or a corporate IT manager, you increasingly won’t have to buy computers to run your business. You just rent capabilities from some computing giant and move the information there and back over the internet. If something crashes, the data […]

Original post by Kevin Maney, Portfolio.com

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