Some Analysis of HP's Numbers
HP can't do services or software. They just do not understand. They just sell profitable servers and printer cartridges and barely profitable PCs.
Software and services account for just 18% of turnover with software at 2% - $2.1 billion. They consistently fail to get value from any software acqusition they make. People leave. The $4.5 billion paid for Mercury Interactive represents a loss.
They spent $10 billion in 2007 acquiring service and software companies. That's an additional $10 billion over their previous investments and existing business. That bought them $18.7 billion in turnover and $1.7 billion in profits. In any language that is a piss-poor return on investment.
Their profits are $9.6 billion - 9% of the massive turnover. They would be better off buying shares in IBM than being in business. They would make a better return.
35% of their turnover is still from PCs, mainly laptops - that is $36.4 billion. It only makes a tiny margin and drags down all the other percentages. As a business area, it is not worth the effort
Rather than spending billions on buying EDS, HP could invest the money considerably more profitably in building a EDS business unit from within. $12 billion would buy a lot of discounts to win contracts and competent staff to run them.