Page 2 of 2
HP's 2013 Enterprise Services outlook was dented by four major customers re-negotiating contracts and taking some operations in house, according to Nefkens. He said HP will increase its focus on lower-risk, higher-margin deals in the coming fiscal year, which begins Nov. 1.
HP acquired EDS in 2008 for $13.9 billion as part of former CEO Mark Hurd's quest to battle IBM in services, but last month wrote down $8 billion from the deal. CRN reported last month that HP had been looking for a buyer for EDS, but HP denied this was the case and said EDS is not for sale.
HP is confident that by revamping its internal sales systems and restructuring its accountability model for Enterprise Services reps, it can boost operating margin back into the 7 to 9 percent range, HP's Nefkens told analysts.
HP Enterprise Services has "global scale and market presence," which is something HP's competitors will have a tough time matching, Nefkens said.
"We handle mission critical work, and we can handle it anywhere in the world. We are the trusted adviser for our clients every day," Nefkens told analysts.