Electronic Data Systems
Corporate brand
UnclaimedAmerican information technology services company that pioneered large-scale outsourcing and systems management.
Last updated August 31, 2026
Overview
Electronic Data Systems (EDS) was an American information technology services company founded in Dallas in 1962 by H. Ross Perot. It became one of the companies most closely associated with the development of commercial information-technology outsourcing: rather than merely selling computers or software, EDS managed substantial portions of clients’ technology operations, including data centers, networks, applications, payroll systems, claims processing, and transaction platforms. Perot’s early insight came from observing that many IBM customers owned expensive computing equipment that was not being fully used. EDS initially created value by matching unused computer capacity with organizations that needed it. The company then evolved into a facilities-management provider, effectively operating information-technology departments for customers. Early work included services for insurance companies, banks, credit unions, and public-sector health programs such as Medicaid and Medicare in Texas. Morton H. Meyerson, who joined EDS in 1966, helped shape the scalable outsourcing model and became a major figure in the company’s expansion. During the 1970s, EDS broadened its work in insurance, financial services, electronic funds transfer, automated teller machines, and point-of-sale systems. It also began pursuing international contracts and entered sectors such as travel, telecommunications, and government services. In the 1980s, the company supported large government and military programs and expanded its international footprint. Its growth made it an attractive acquisition target for General Motors, which purchased EDS in 1984 for approximately $2.6 billion. EDS operated as a wholly owned GM subsidiary while retaining a distinct brand and substantial management autonomy. GM spun EDS off in 1996, returning it to independent public-company status and the New York Stock Exchange. As an independent company, EDS expanded through international operations, consulting, applications development, business-process outsourcing, and systems integration. It supported major global sporting events, including the 1992 Barcelona Olympics and the 1994 and 1998 FIFA World Cups. The company also secured large outsourcing agreements with organizations such as Xerox, Bank of America, American Airlines, Kraft Foods, General Motors, and the United States Navy. Its high-profile 2000 “Herding Cats” campaign helped reposition the company as a technology-management brand for the digital economy. EDS acquired or developed capabilities in consulting, application testing, banking processing, managed security, government software, and human-resources outsourcing. Its purchase of A.T. Kearney gave it a major management-consulting business, although that unit was later sold through a management buyout. In the mid-2000s, EDS also acquired a majority interest in Indian services company MphasiS and expanded its presence in offshore application and business-process delivery. In May 2008, Hewlett-Packard announced an agreement to acquire EDS for approximately $13.9 billion. The transaction closed on August 26, 2008, and EDS became an HP business unit. In 2009, it was rebranded as HP Enterprise Services. After the 2015 separation of Hewlett Packard Enterprise from HP, the business became part of Hewlett Packard Enterprise Services. On April 3, 2017, the former EDS operations were combined with Computer Sciences Corporation to create DXC Technology. Although the EDS brand disappeared as an independent operating identity, parts of its personnel, client relationships, infrastructure, and delivery practices continued within successor organizations.
History
EDS was founded in 1962 by H. Ross Perot, a former IBM salesman who believed companies could obtain greater value from computing resources through professional management rather than simply purchasing more hardware. One early arrangement paired unused computing capacity at Southwestern Life Insurance Company with the needs of Collins Radio. This helped establish the basic commercial logic of EDS: provide computing capacity and operational expertise as an ongoing service. The company soon moved into facilities management, taking responsibility for substantial portions of customers’ information-technology operations. Morton H. Meyerson joined in 1966 and helped develop the outsourcing model that became central to EDS’s growth. During the late 1960s and 1970s, EDS served insurance companies, banks, credit unions, and public-sector health programs. It expanded from batch processing into real-time financial systems, automated teller machines, electronic funds transfer, and point-of-sale technology. By the mid-1970s, its annual revenue had exceeded $100 million, and the company was beginning to pursue international work. In the 1980s, EDS added travel-industry systems, defense and military contracts, and broader international operations. It acquired Centurion Computer Corporation in 1981, extending its activities into small-business minicomputers. General Motors purchased EDS in 1984 for approximately $2.6 billion. Under GM ownership, EDS remained a major technology-services provider and expanded substantially in employees, countries served, and revenue. It also established its major corporate campus in Plano, Texas, with the relocation developing in stages from the mid-1980s through the early 1990s. GM spun EDS off in 1996. The independent company entered telecommunications and additional international markets, supported large sporting events, and won major outsourcing contracts. A 1994 agreement with Xerox was described at the time as the largest information-technology contract then signed. EDS also acquired Databank Systems in New Zealand and A.T. Kearney, a major management-consulting firm. The company worked on more than 1,300 Year 2000-related projects and invested in a new visual identity, including a new logo introduced around 2000. During the 2000s, EDS presented itself as a broad services company organized around infrastructure, applications, and business-process outsourcing. Infrastructure work included operating networks, mainframes, servers, desktops, and communications environments. Applications work covered development, integration, and maintenance. Business-process outsourcing included payroll, call-center operations, insurance claims, consumer lending, and other administrative processes. The company entered alliances with technology vendors including Cisco, EMC, Microsoft, Oracle, SAP, Sun Microsystems, Symantec, and Xerox. EDS expanded through acquisitions in India, government software, testing, managed security, and information assurance. It acquired a majority interest in MphasiS in 2006, bought RelQ in 2007, agreed to acquire a majority interest in Saber Corporation in 2007, and acquired Vistorm in 2008. It also operated or invested in related businesses such as ExcellerateHRO, Injazat Data Systems, SOLCORP, EDS Consumer Loan Services, and MphasiS. HP agreed to acquire EDS in May 2008 for approximately $13.9 billion, and the deal closed on August 26 of that year. EDS became an HP business unit, with Ronald A. Rittenmeyer initially continuing as its senior leader before retiring at the end of 2008. In September 2009, HP Enterprise Services became the principal market identity of the business. Following HP’s 2015 corporate separation, it operated within Hewlett Packard Enterprise Services. On April 3, 2017, that business was merged with CSC to form DXC Technology. The EDS name therefore ceased to function as an independent corporate brand, although successor organizations retained significant parts of its business and operating heritage.
- 2017
Merged into DXC Technology
[1]HP Enterprise Services combines with CSC, creating DXC Technology and ending EDS’s standalone corporate existence.
- 2009
Rebranded as HP Enterprise Services
[1]The former EDS business begins marketing under HP Enterprise Services.
- 2008
Acquired by Hewlett-Packard
[1]HP completes its acquisition of EDS for approximately $13.9 billion.
- 2006
MphasiS majority interest acquired
[1]EDS acquires a majority holding in Bangalore-based MphasiS, strengthening application development and business-process delivery in India.
- 2000
New brand identity and “Herding Cats” campaign
[1]EDS introduces a new logo and gains broad public recognition through its Super Bowl advertising campaign.
- 1996
Spun off by General Motors
[1]EDS becomes independent again and is relisted on the New York Stock Exchange.
- 1992
Plano headquarters campus opens
[1]EDS’s large Legacy campus in Plano, Texas, begins operating as a major corporate and data-center complex.
- 1984
Acquired by General Motors
[1]General Motors purchases EDS for approximately $2.6 billion and operates it as a wholly owned subsidiary.
- 1981
Centurion Computer Corporation acquired
[1]EDS purchases Centurion Computer Corporation, a small-business minicomputer manufacturer.
- 1975
Revenue passes $100 million
[1]EDS’s expansion across insurance and financial services helps annual revenue exceed $100 million.
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Products and positioning
A global enterprise technology-services provider specializing in long-term outsourcing, infrastructure operations, application services, systems integration, and business-process management.
IT infrastructure outsourcing
Infrastructure Services
EDS operated clients’ technology infrastructure, including mainframes, midrange systems, web servers, networks, desktops, laptops, printers, and communications environments. The offering extended from individual operational functions to full outsourced technology departments, making EDS responsible for reliability, support, maintenance, capacity, and service delivery.
Application development and systems integration
Applications Services
Applications Services covered the development, integration, testing, modernization, and maintenance of enterprise software. EDS worked with customers to connect business applications with infrastructure and operational processes, including expanded capabilities around SAP consulting and systems integration.
Business-process outsourcing
Business Process Outsourcing
EDS performed selected business functions on behalf of customers, including payroll administration, call-center operations, insurance claims processing, consumer lending support, and related back-office work. This extended the company’s outsourcing model beyond technology operations into managed business activities.
Government technology services
Government and Public-Sector Systems
EDS designed and operated information systems for government agencies, defense organizations, and state administrations. Its public-sector activities included health-program support, military contracts, state-government software through Saber, and other large-scale systems requiring security, continuity, and regulatory compliance.
Financial technology services
Financial Transaction Processing
The company provided technology for banking and financial transactions, including automated teller machines, electronic funds transfer, real-time point-of-sale terminals, consumer loan support, and banking-processing operations. These services built on EDS’s early work with banks, credit unions, and insurance organizations.
Marketing campaigns
- 2007Nobel Prize Series technology partnership
International
EDS entered a three-year agreement with Nobel Media and Nobel Web to become a Global Sponsor of the Nobel Prize Series and a technology-services partner for Nobel-related web properties.
Outcome. EDS supported digital content and web-technology activities associated with the Nobel Prize organization.
- 2003EDS Byron Nelson Championship sponsorship
United States
EDS served as title sponsor of the PGA Tour’s EDS Byron Nelson Championship from 2003 through 2008. The event was held near the company’s Texas base and supported youth and family-service organizations in the Dallas area.
Outcome. The tournament was renamed the HP Byron Nelson Championship after the HP acquisition.
- 2000Herding Cats
United States
EDS’s Super Bowl advertisement portrayed cowboys attempting to herd large groups of cats. The metaphor presented complex coordination as a business and technology challenge and helped make an otherwise enterprise-focused outsourcing company recognizable to a mass audience.
Outcome. The advertisement became one of EDS’s best-known brand assets and supported its repositioning as a modern technology-services company.
- 1998Derby County sponsorship
United Kingdom
EDS sponsored English Premier League football club Derby County from 1998 to 2001, using sports sponsorship to increase visibility in an important European market.
Outcome. The sponsorship continued through 2001.
Brand decisions
2017
Combine former EDS services business with CSCM&ABackground
Hewlett Packard Enterprise reorganized its services activities as part of a broader effort to create a focused technology-services company.
Action taken
HPE Enterprise Services merged with Computer Sciences Corporation to form DXC Technology.
Aftermath
The EDS brand ceased to operate independently, although significant EDS-derived operations and capabilities continued within DXC.
2008
Agree to Hewlett-Packard acquisitionM&ABackground
HP sought to strengthen its enterprise-services business, while EDS was a large global provider with extensive outsourcing infrastructure and client relationships.
Action taken
HP agreed to acquire EDS for $25 per share, representing an enterprise value of approximately $13.9 billion; the transaction closed on August 26, 2008.
Aftermath
EDS became an HP business unit and was subsequently marketed as HP Enterprise Services.
Acquisition enterprise value. $13.9 billion (2008)
1996
Return to independent public-company statusStrategyBackground
General Motors decided to separate EDS after more than a decade of ownership.
Action taken
GM spun off EDS, which returned to independent operation and New York Stock Exchange listing.
Aftermath
EDS expanded internationally, entered additional industries, and pursued acquisitions and long-term outsourcing contracts as an independent company.
1984
Accept General Motors acquisitionM&ABackground
EDS had grown into a large technology-services provider, while General Motors sought stronger control over its information systems and technology capabilities.
Action taken
EDS was sold to General Motors for approximately $2.6 billion and operated as a wholly owned subsidiary.
Aftermath
EDS continued expanding under GM and was later spun off as an independent company in 1996.
Acquisition value. $2.6 billion (1984)
Recent events
- 2017
HP Enterprise Services merges with CSC to form DXC Technology[1]
M&A
The former EDS services business was combined with Computer Sciences Corporation, creating DXC Technology and ending EDS’s independent corporate identity.
- 2017
Hewlett Packard Enterprise Services merged into DXC Technology[1]
M&A
The HPE services business was combined with Computer Sciences Corporation to form DXC Technology.
- 2009
EDS is rebranded as HP Enterprise Services[1]
Other
HP changed the market-facing identity of the former EDS business to HP Enterprise Services as integration into HP progressed.
- 2009
EDS began operating as HP Enterprise Services[1]
Other
The former EDS business adopted the HP Enterprise Services market identity as integration with HP progressed.
- 2008
Hewlett-Packard agrees to acquire EDS[1]
M&A
HP announced a definitive agreement to acquire EDS for approximately $13.9 billion; the transaction closed on August 26, 2008.
- 2008
Hewlett-Packard agreed to acquire EDS[1]
M&A
HP announced an agreement to purchase EDS for approximately $13.9 billion; the transaction closed on August 26, 2008.
- 2000
EDS launches its “Herding Cats” brand campaign[1]
Campaign
A widely recognized Super Bowl advertisement used the image of herding cats to communicate the complexity of coordinating technology and business operations.
- 1996
EDS is spun off by General Motors[1]
M&A
GM separated EDS as an independent public company, and EDS returned to the New York Stock Exchange.
- 1996
EDS was spun off by General Motors[1]
M&A
GM separated EDS as an independent public company, restoring its standalone corporate status.
- 1984
General Motors acquires EDS[1]
M&A
General Motors acquired Electronic Data Systems, making it a wholly owned subsidiary while preserving EDS as a distinct technology-services operation.
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