Why E.D.S. loves a recession

Article Abstract:

Electronic Data Systems Corp (EDS), a subsidiary of General Motors Corp, is capitalizing on companies' need to downsize in a recession. EDS is almost able to guarantee its customer companies that their computing costs will go down. EDS uses its influence to get significant price breaks for its clients, prompting IBM to enter computer services. Companies that used to buy hardware directly from manufactures are now buying through computer service companies. Under EDS's new chairman, Lester Alberthal, EDS is buying out the computing operations of large companies. Alberthal has reorganized EDS's business structure to counter complaints that as EDS grows larger, customer service suffers. EDS now has 38 units, each dealing with a specific industry. The company plans to ride its $ 3 billion-a-year revenue success into new areas including telecommunications networks.

Management Style, Financial Analysis Software, Outlook, Computer Services, Perot, H. Ross, Alberthal, Lester M., Jr.

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E.D.S. set to restore cash-machine network

Article Abstract:

Electronic Data Systems Corp (EDS) restores on Mar 26, 1993 full service to 5,200 automated teller machines (ATM) that went out of commission when a huge snowstorm disabled one of EDS' computer centers. The company also covered $50 million in cash withdrawals in alternate ATM networks when its system was down. The alternate networks did not initially have access to customer accounts data so there was a risk that some customers were able to withdraw money from empty accounts. EDS' coverage continues until the networks, the banks and the company itself can process the transactions. EDS' 12 ATM networks went down on Mar 13, 1993 when the East Coast blizzard heavily damaged the company's Clifton, NJ computer center. EDS has since transferred its equipment to a new center in Rochelle Park, NJ.

Usage, Computer industry, Information management, Automated teller machines, Natural disasters, Disaster Recovery/Prevention Software, Disaster recovery software, Information Centers

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Its courtship over, E.D.S. seems eager to play the field

Article Abstract:

With the collapse of negotiations between British Telecom and Electronic Data Systems Corp (EDS), Lester M. Alberthal Jr, chairman and CED of EDS, says that the company is not interested in changing ownership but was just exploring business relationships that would make sense. Analysts concur, saying that EDS does not need a specific partner but would benefit from alliances with many companies. British Telecom was negotiating for a 25 percent stake in EDS. EDS, a leading computer services company, earned over $8 billion in sales in 1992 and is expanding its operations in Europe, considered a hot market. Analysts indicate, however, that despite the company's profitable independence, it needs to tie up with telephone companies to ensure its long-term growth.

Partnerships, Growth (Physiology), Growth, Strategic Planning, Expansion, Partnership

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