EDS Company Profile
Electronic Data Systems is one of the pioneers in IT services in general and data processing in specific. Established in 1962, the company founded by Ross Perot has become one of the largest and sophisticated players in the market with such customers like General Motors and the US government. This is the reason for which this company which struggled in its early days finding customers and using rented mainframes has now transformed into a global company which consistently ranks in the first 150 companies in the prestigious Fortune 500 list.
Electronic Data Systems was founded in 1962, by the then young Ross Perot. Ross Perot had just resigned from IBM as he felt that the emerging Information Technology was not used at its highest potential by the company he had worked in. The first few years saw a real struggle as the first contract came only two months after the founding of the company and the data processing was done at odd hours on various computer mainframes, by buying the unused times.
As time went by EDS gathered a portfolio of repeat customers, so in 1965 the company bought its very first computer. By this time, the company had already secured several long term contracts which made impervious to the vicissitudes of the economic environment. The very first IT facilities management contract in the industry was signed in 1963 with Frito Lay for a period of 5 years.
The last years of the sixties saw the first government contracts, which would lead to much more important accounts in the years to come.
What made the difference for the company though, was the public listing at the stock exchange. In just a few hours EDS saw a rise in shares from approximately 16$ to more than 100 dollars. Ross Perot became rich over night and the company rose to fame.
By 1969, the company was holding 31 mainframes, a share was sold at about 160 dollars and the company was worth a staggering at the time 1 billion.
Throughout the seventies, the company expanded by engaging with foreign governments and the health insurance data processing became the core of the activities with the year 1977 seeing a number of 334 million transactions. Slowly the company also developed its portfolio of services to include automated teller machines and financial transactions.
The eighties saw EDS reach new heights, becoming the most important health insurance claim data processing service with 16 states using the company?s service. However, the biggest project landed by the company in this era was the one for the US Navy Inventory Control Points Contract worth at 350 million dollars. Soon after, in 1984 General Motors bought the company for 2.5 billion dollars. Throughout the remaining years of the 80?s the company expanded at an accelerated rate purchasing new companies in Europe and Asia, landing deals with companies such as AT&T, building new data centers and hiring more and more people.
Through the 90?s and the first years of the millennium EDS finally reached its current form with multibillion contracts for entities like Saab Automobiles, General Motors and Navy Corps.
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