What was rumor and speculation yesterday became truth today as Hewlett-Packard bought EDS for $13.9 billion in a move HP CEO Mark Hurd described as being "about us putting our outsourcing business into EDS." Analysts, meanwhile, are saying that HP and EDS make for a high-risk merger because even though the combined entity will be strong on infrastructure-related services it will be weak, relative to IBM, on business-level dialogue with customers. Related analysis: Why HP wants EDS.

In a rather bold proclamation a company executive said Tuesday that Microsoft hopes to capture 40 percent of the smartphone market by 2012 -- an ambitious plan given its small market share today and the stiff competition it faces.

Twenty-five percent of respondents said they plan to spend less on software in coming months, while only 12 percent indicated spending would rise, according to a recent survey by ChangeWave Research that indicates a deepening trend.

The E.U. won't seek a new antitrust complaint against Microsoft and the group is not following up a British agency's complaint about Microsoft business practices the way it normally would, but Microsoft maintains that it will continue to work with the group and try to resolve the issue.

And editor-at-large Paul Krill, at the JavaOne show this week, wonders whether former Sun CEO will show his face this year, in It's JavaOne, but where's Scott?

Posted by Tom Sullivan on May 13, 2008 09:21 AM