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Technology Stocks : EDS - Recent pullback a buy opportunity??? -- Ignore unavailable to you. Want to Upgrade?

To: Daniel G. DeBusschere who wrote (1095)	7/31/1998 12:00:00 PM
From: Daniel Liberty	Read Replies (1) \| Respond to of 1841

Daniel, How did you determine that the 75 to 80 million dollar investment was for SAP? Was this discussed in the conference call? EDS trained a large number of individuals in the SAP installation process about 4 years ago. I don't know how the training has been utilized or if it has been ongoing, but I remember that it was extensive. I believe the entire training cycle lasted about nine months. With all of the press coverage that SAP is getting this will be a good opportunity for EDS. Dan

To: Daniel G. DeBusschere who wrote (1095)	7/31/1998 12:34:00 PM
From: Rick Kupcunas	Read Replies (2) \| Respond to of 1841

Couple of things... EDS does not have 110K IT professionals, this is the total number of employees and I am sure a large percentage are clerical, admins and managers - all of which are non-technical. Also be aware that the demand for SAP people is incredible. Once many of the EDS folks gain SAp experience I am sure they will leave for greener pastures (this is happening at the big 6 , uh big 5, consulting firms. One major advantage (or disadvantage) of SAP is the requirement to force an organization to change their business practices to conform to the best-of-breed practices within SAP. This will be a monumental process at GM and I hope EDS can pull this off; good concept but it very difficult to manage an SAP installation since they typically can take YEARS to install. P.S. Hear that Perot Systems (everyone remember Ross?) is having an IPO soon? Heard they have been waiting for good news from EDS before the IPO was official since the two firms are so closely aligned - heard the IPO will be $10-12/share.... should be an interesting play (time will tell).

To: Daniel G. DeBusschere who wrote (1095)	7/31/1998 8:51:00 PM
From: Dave O.	Read Replies (1) \| Respond to of 1841

< by investing $75-$80 million in SAP deployment in GM , EDS has thrown in the towel on the "mainframe paradigm" and embraced what the customers want and are willing to pay for even if its not the most cost effective way to run a global IT > Don't you think a SAP implementation is much better longer term than hundreds of legacy systems residing on DEC, IBM, etc. equipment? SAP implementations are extremely long and I'd think at GM it could take years and years. But the piecemeal systems that GM has had around for so long have to go. Why don't you feel this is the most cost effective way to go? BTW, isn't GM also looking at or implementing some PSFT (Peoplesoft) software (maybe HR area)? Dave