EDS Inks Deals Worth $500M

Building on this week's announcement of a service contract extension with Sun Microsystems projected to be worth $3 billion in sales during the next five years, EDS has secured an additional $500 million in new service contracts.

During the next three years, EDS will provide support, desktop services, and network maintenance for Lotte Corp., a Japanese fast-food restaurant operator that's using SAP's R/3 human-resources system across its operations. German telecom systems services company Tenovis signed a five-year contract with EDS, which will provide IT support services for Tenovis' 6,500 workstations. EDS also inked a four-year deal with the South Australian government to develop a standardized messaging infrastructure that will support 25,000 E-mail addresses.

Industry watchers agree that it's hard to determine the value of multiyear contracts until the deals produce revenue, but the ability to sign new deals is a sign of EDS's strength as a player in the professional services market.