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

To: Dave O. who wrote (1237)	11/12/1998 6:23:00 PM
From: bcroyle	Read Replies (1) \| Respond to of 1841

Merging w/people soft sounds like a good story... but EDS has never had much luck with this kind of move. Think of Unigraphics, for example. It was and is the top of the line absolute best computer aided design and solid modeling software, used by largest portion of manufacutures. EDS acquired it in the late 80's from McDonald Douglas Automation since it was a high margin software business, and was widely used at GM. EDS sold Unigraphics last year (actually spun it out, a la EDS and GM) after figuring out that being both the software provider AND the integrator is just too tough. I've been in that role and you just can't win: if the software fouls up it your fault, if it's the wrong choice for the client it's your fault, if the project goes south it's your fault, if everything goes great it's still a pain because you take the application and software support headaches that come with any software suite. So, think of what would happen if EDS both owned, and installed PeopleSoft: the PeopleSoft alliance partners would run away (anderson, pw, dozens of others) so you would lose your delivery capability; EDS would have to buy some of the PeopleSoft integrator to get the expertise to install it; and so on... bad idea.