HP Gives EDS New Name, Hones Its Focus

HP (HPQ) on Wednesday changed the name of its year-old acquisition, EDS, to HP Enterprise Services.

The new moniker points to HP’s evolution from computer and printer manufacturer to full-fledged business consulting and services company. HP is now pitted against IBM Corp. and a latecomer, Dell Inc., which earlier this week said it’s buying Perot Systems to get into the same game.

HP said EDS – or the enterprise group – contributed 47 percent of the company’s overall revenue in the third quarter of fiscal year 2009.

Still, it’s not been an easy year for EDS employees. HP laid off 25,000 EDS workers, cut some salaries by more than 20 percent and even relocated top brass from cushy offices to small cubicles. But as a New York Times analysis notes, the risk has paid off for HP.

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