NTT Data's Dell deal continues its EDS resurrection
There are three distinct sides to the meaning of NTT Data’s acquisition of Dell Services.
From the Dell perspective, it is the jettisoning of its services business, primarily the Perot Systems acquisition of 2009.
With the sale to NTT Data, Dell is now focused on hardware and software and can continue to integrate the acquisition of EMC and other affiliated businesses such as RSA and VMware.
For NTT Data, the $3 billion acquisition continues to build its presence in the United States. Japan-based NTT Data has been on a mission over the last four or five years to diversify its portfolio and expand a base of operations in the United States.
According to Forbes, NTT Data has made about 20 acquisitions in the past five years, primarily with a focus on IT services and consulting. Before Dell, its biggest U.S. acquisition was Keane Inc. in 2011.
With Dell Services, it is expanding into several sectors: health care, life sciences, financial services, manufacturing and of course, public sector.
The public sector business will be lead by Tim Conway, who came over to NTT Data when it acquired Keane in 2011.
George Newstrom will continue to run the federal business. Newstrom ran federal for Dell Services.
But the third side to this story is that NTT Data isn’t just building something new in the U.S. market, it also is creating something has very deep roots in the IT market: Electronic Data Systems Corp.
EDS is a legendary name in the market and was acquired in 2008 by Hewlett-Packard. EDS was founded by Ross Perot, who after selling EDS, formed Perot Systems, which was later acquired by Dell and now has been acquired by NTT Data. Of course, HP has split and is splitting again. The EDS heritage is headed to Computer Sciences Corp., which already had jettisoned its government business to form CSRA.
Yes, it is a tangled web of company lineages in the IT market.
But let’s stay focused on NTT Data and EDS.
You’d think that after nearly a decade, the EDS-er who left HP would be scattered to the four winds.
But it looks like a lot of them have found at home at NTT Data.
Let’s start at the top:
John McCain is the CEO of NTT Data Inc. He was at EDS for 16 years.
I’ve already mentioned George Newstrom. He had a long EDS career.
Ralph Burns, president of health care and life sciences, is a former EDSer as is Mark Fulgham, president of enterprise applications, digital and cloud services, and Mike Wallesen, president of manufacturing and commercial.
Chief Financial Officer David Croxville is formerly of EDS. Bob Pryor, chief integration officer, spent 15 years at the company.
Sylvia Steinheiser, executive vice president of corporate development, joined EDS when it was part of HP.
Mike Thomas, executive vice president, sales and client management, managed global professional services at EDS.
That’s what I got from going through the bios on NTT Data’s website. Other companies making frequent appearances on executive resumes include Keane and CapGemini.
I searched LinkedIn on “EDS, NTT Data and public sector,” and I found 25 more people who are working at NTT Data that also list EDS as a past employer
So, will NTT Data be the second coming of EDS?
Not exactly. The world has changed mightily in the last decade.
But I’m sure back home in Texas, Ross Perot Sr. is smiling. The two companies he founded have been absorbed by other companies, but his legacy lives on.
Posted by Nick Wakeman on Nov 03, 2016 at 12:45 PM