David Caspari, vice president of EDS in Australia and New Zealand, foresees a strong 2009, citing the outsourcing company's third consecutive year of strong profit and cash flow. “The current environment is good for EDS. In a difficult economy, CEOs are asking CIOs to reduce costs and take a look at the balance sheet," says Caspari.
“The pipeline looks very good,” he says, as EDS will announce “significant new contracts” in Australia and New Zealand within the next two months.
At the same time, Caspari underscores the new push for EDS to get into the midmarket range, which he says is an attractive option for New Zealand enterprises.
He defines the midmarket client criteria as those signing less than $10 million in annual contract value. The scale of products for the midmarket offering will be more pre-defined from the solutions offered, along with the contractual and commercial standpoints, says Caspari.
The midmarket offering will deliver at scale that plays on the strengths of flexibility, skills and the access to the innovation and technology of EDS, which was acquired by HP last year.
“We can reduce IT costs and IT spend and retain innovation,” he says.
Jeff Womack, vice president of product marketing for EDS, says while EDS and HP traditionally deal with larger enterprise companies for outsourcing contracts, enabling customers to pick and choose services at tiered pricing levels will help the merged vendor appeal to smaller clients.
This motivation is also evidenced in another updated service set, EDS Managed Services in North America. According to Womack, the company can now scale its server management offering down to as few as 85 servers and from a service desk standpoint, 1,000 seats.
"From an EDS point of view, those are infinitesimally small numbers," says Womack.
With companies turning to outsourcing to cut costs during the economic crisis, HP could fare better with its EDS business during the downturn.
Among the managed services offerings are: Server and storage operations, which provide 24x7 monitoring and support; service desk that is designed to augment in-house support; flexible computing, which lets clients pay only for the computing they use; and managed messaging to tackle availability, security and compliance at a monthly cost for Microsoft Exchange environments. With reporting from Denis Dubie, Network World
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