IT Analysis - HP and EDS: What Does the Deal Mean for Xerox?

Although HP's recent announcement to acquire EDS for $13.9 billion (£7.1 billion) may have sparked talk of consolidation in the IT services industry, spare a thought for the impact of this deal on Xerox, a long-standing EDS partner. With HP aggressively looking to widen its footprint in the corporate printing space as part of its Print 2.0 strategy, the acquisition of EDS will help it make further inroads to compete with Xerox Global Services (XGS), currently a $3.4 billion (£1.7 billion) organisation and a key growth engine for Xerox.