Managing Automation- July 2008

INDUSTRY NEWS FULL COVERAGE MA NEWSLETTER TO SUBSCRIBE GO TO OF EVENTS AND ANALYSIS WWW.MANAGINGAUTOMATION.COM managingautomation.com Alliances, Executive Appointments, Mergers & Acquisitions, Products news For the maonline in perspective Record APPOINTMENTS HP’s Acquisition of EDS May Face Integration, Global Delivery Challenges BY DIANE HIMES E2open, Inc. named Peter Maloney its new CFO. Epicor Software Corp. promoted Lauri Klaus to executive vice president, worldwide consulting. HighJump Software tapped Timothy Campbell as CEO. Terra Technology appointed Michael Mastroianni vice president of supply chain strategy. Lawson Software selected Craig Bickel as senior vice president and CIO. Mobile robot manufacturer Seegrid Corp. appointed Jack Antounian vice president of operations; Michael Clark, director of engineering; and Dominic Niro, director of sales. CONTRACTS ABB signed a $12 million contract to provide an electrical power and automation system for Drake Cement’s new plant in Yavapai County, AZ. Genzyme Corp., a biotechnology company, installed Dyadem’s FMEA-Med software to automate compliance reporting. Rabigh Refining & Petrochemicals Co. chose Honeywell Solutions for an integrated advanced planning and Continued on page 11 ewlett-Packard Co.’s most recent foray into the enterprise services market was, for the most part, an unexpected one, most industry observers agree. But when it announced its intention to acquire computer services stalwart EDS in May, HP, in effect, became the number two provider in the overall services market. The $13.9 billion deal, scheduled to close in the second half of the year, calls for Palo Alto, CA-based HP to merge its outsourcing operations into the Plano, TX-based EDS, to form a new entity to be called EDS, an HP company. The combined HP/EDS will boast IT services revenue of $38 billion (double HP’s former services revenue), positioning the new entity behind IBM and its market-dominating $54 billion position. Through the acquisition, HP gains access to EDS’ client base across a variety of industries, 43,000 additional globally dispersed employees, and the benefit of EDS’ strength in certain areas, including applications outsourcing. EDS, in turn, gains a corporate parent with the resources to help mitigate some of the financial H uncertainty that has plagued the company in recent years. But despite the many positives attending the deal, questions remain, particularly with respect to integrating the two cultures while leveraging the strengths each company brings to the union, and doing so on a global stage. Although EDS employs roughly 40,000 personnel in its “Best Shore” operation, a services strategy that blends onshore, near-shore, and offshore outsourcing delivery capabilities on a client-by-client basis, historically the company has lagged behind such competitors as IBM, said Gartner analyst Dane Anderson. “As the offshoring phenomenon started to take hold around the turn of the century, most multinationals thought it eventually would pass, but, in fact, it continued to gain steam,” he said. “IBM and Accenture have been decidedly more aggressive at developing a globally integrated enterprise.” Bringing HP and EDS into harmony, culturally and otherwise, will likely pose the most formidable challenge following the acquisition, according to AMR Research. Both companies have their Shift to 3D CAD Fuels Steady Growth Total CAD revenue will increase at a compound annual rate of 11% through 2012, according to Jon Peddie Research, with gains in emerging economies offsetting contractions in the West. The research firm predicted that the market will grow 15% in 2008, to $6.02 billion. Fueling the increase are hardware advances that put 64-bit, multi-core computers into the mainstream and broader acceptance of 3D design techniques. Also, the combination of CAD visualization and information management has extended CAD’s relevance throughout the enterprise. CAD is also benefiting from smaller businesses’ investments in new technologies to improve their processes. In 2007, the worldwide installed base of CAD users reached 5.3 million, up 20% from 4.4 million in 2006. In 2007, most CAD users — 63% — were still working in 2D and 37% in 3D. However, the more expensive 3D CAD accounted for 53% of the market, while 2D made up 47%. That trend will continue as companies shift to 3D tools, the firm said. NUMBERS CAD Revenue Rising at Annual Rate of 11% through 2012 $6,025 million $6,609 million $7,072 million $7,567 million $8,210 million $4,362 million $5,235 million THE BY 2006 2007 2008 2009 2010 2011 2012 Total CAD Revenue ma July 8 2008 Source: Jon Peddie Research http://WWW.MANAGINGAUTOMATION.COM http://managingautomation.com

Table of Contents Feed for the Digital Edition of Managing Automation- July 2008

Managing Automation- July 2008 Contents Take 1 HP's Acquisition of EDS May Face Integration, Global Delivery Challenges Rimini Plans to Woo SAP Support Users Rockwell Steps Up Its Activities in Software Microsoft Targets the Process of Innovation Supply Chain Standouts Honored by AMR Notes Who Are Today's Influential Thinkers? The Robot Revolution Is the Price Right? Without a Trace Harvesting the Suggestion Box Product Scan Advertiser Index Next

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