HP set to acquire EDS

So what does this mean? Before we talk about the deal. The facts are as follows:-
According to Hoovers,

Hewlett Packard
HP provides enterprise and consumer customers a full range of high-tech equipment, including personal computers, servers, storage devices, printers, and networking equipment. Its software portfolio includes operating systems, print management tools, and OpenView, a suite that encompasses application, business, network infrastructure, and product lifecycle management. HP also boasts an IT service organization that is among the world's largest.

EDS
....it is the largest independent systems management and services provider in the US (rival IBM is #1 worldwide). EDS delivers such services as systems integration, network and systems operations, data center management, application development, and outsourcing.

The other fact and rather a startling one at is that HP shares are going down. I am no big industry analyst but I believe it is a cause for celebration. The reasons become clear when we look at the offerings provided by the two companies.

HP makes hardware like servers, storage devices, printers and networking equipment. On these pieces of hardware runs its flagship operating system HP-UX along with OpenVMS, Tru64, etc. The software stack is made up of the humongous HP OpenView suite of products

EDS, on the other hand is the leading IT services provider after IBM Global Services and the leading IT services provider in the US. HP could not have acquired IBM Global Services so the next best bet was EDS. Critics would say that EDS has not been doing well in recent times. It has a meager growth rate of 1-2%.
If HP were to take note of this, then they could have possibly gone for Accenture. Lets take a look at Accenture now. According to Hoovers again,

Accenture
The world's largest consulting firm, Accenture offers management consulting, information technology and systems integration, and business process outsourcing (BPO) services to customers around the globe. The company divides its practices into five main operating groups -- communications and high technology, financial services, public service, products, and resources -- that encompass more than 15 industries.

Lets compare the two companies EDS and Accenture. I would say there is little overlap. So, if HP were to think about acquiring either of these companies, there will be two schools of thought and one school of thought would definitely win and i.e. EDS.

To elaborate, EDS services and HP technology/products complement each other so well. Systems integration, network and systems operations, data center management, all these would need HP servers, HP networking and storage infrastructure and above all HP Openview.
Another point to note is that according to HP CEO, Mark Hurd, "There is very little customer overlap with our two companies, so the opportunity as a combined force is significant". And that would mean, HP will have fresh opportunity and customers to sell and after the acquisition is done, CROSS-SELL it products. Again, EDS being the largest largest IT services provider in US, it helps HP to consolidate the one continent where its server, networking and storage and software products have not done well in recent times.

All said and done, EDS is a $22 billion giant and acquisition of such a beast will never be an easy task. We have seen too many instances of big mergers/acquisitions going terribly wrong. Having said that, HP management is not new to this game. They have accomplished some mighty big acquisitions/mergers like Compaq and Mercury so I would believe that this will not be a easy task but HP would be up to it.

Notwithstanding, I am an HP employee (at the moment:-)), I believe this has been a very bold and strategic decision and HP will definitely pull it off. As they say, "fortune always favors the brave".