What's that I hear?

What’s that I hear??

HP acquiring EDS for $13.9 Billion, or $25 per share. Expected to be accretive in 2010. Expected to reduce costs by $1 billion, mostly through employee reductions. Very little duplication of top customers.

What’s that I hear?

Is it a nail in the coffin of Dell?

How will Steve Schukenbrock spin this one? Here’s a preview: Dell is targeting the SMB market, which will be totally abandoned by the HP-EDS merger. Dell will focus on remote diagnostics in their service programs.

EDS employees are looking to make a double windfall. The first one will occur when the deal with HP closes. The second windfall will occur with Schukenbrock spending some time in Plano with his checkbook signing new recruits.

…or is more likely a stake through the heart of Dell? Don’t’ bet against the stake.

Perhaps Michael and Don should fly over to China and negotiate an acquisition with Lenovo.

In case you are wondering, Dell would be the target.