Research

IBM

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It should come as no surprise that the #1 computer hardware maker is also the world leader in computer services. IBM Global Services, the technology services and consulting division of International Business Machines, is the world's biggest provider of systems integration and technology consulting. It offers services in such areas as application development, data storage, infrastructure management, networking, and technical support. IBM Global Services is also among the world leaders in providing business consulting and outsourcing services. The unit provides services to both public and private sector customers throughout the world.

IBM was already a leading provider of technology and support services when it acquired the PwC Consulting, the management consulting arm of accountancy PricewaterhouseCoopers, for $3.5 billion in 2002. The deal catapulted IBM Global Services into a new dimension, bringing together a worldwide strategic consultancy, integration services, and IBM's hardware and software businesses. The division is now accounts for almost 50% of IBM's revenue.

HP

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HP Technology Solutions Group (TSG) is the largest business segment of computer maker Hewlett-Packard, encompassing server and storage hardware, technology consulting, and software sales. The unit's enterprise server operation offers business critical and industry standard data servers, while its StorageWorks unit provides network attached storage (NAS) systems, storage management software, and magnetic tape systems. Its services unit offers system integration and consulting. TSG's software unit offers a wide range of enterprise applications.

HP has been investing in a series of acquisitions to expand and extend TSG's product offerings. In 2005 it acquired server management software firm RLX Technologies and storage management software maker AppIQ. It also bought Peregrine Systems and Trustgenix to enhance its OpenView enterprise management software offering. The following year, HP acquired OuterBay Technologies, a maker of applications for managing and archiving enterprise data. Looking to significantly expand its software portfolio, the company acquired IT management software maker Mercury Interactive for approximately $4.5 billion in cash in 2006. It also acquired IT services provider Knightsbridge Solutions. Early in 2007 HP purchased Bristol Technology, a developer of transaction monitoring software, and it reached an agreement to acquire storage software provider PolyServe.