How low is EDS when they are bidding at 1% on Oracle software?

Well over the last couple of days I have just seen a new low from EDS. They must be suffering big time. We just lost a large Oracle software purchase $385K AUD RRP because EDS discounted by 34% off of RRP with a 1% profit margin.

We had spent months working with a client on their strategies moving forward with Oracle software. They were adamant about using Oracle Middleware as they had a large investment in Oracle database software. We asked about IBM WebSphere Application Server and they were not receptive to the idea.

After working with the agency providing indicative pricing and three different quotes as the procurement process kept changing, getting special pricing from Oracle and putting in a price at 32% off of RRP (which we had been advised was a winning price) we found that we had lost the Tender (which was the final method). We complained saying that the evaluation criteria was based on best value, not best price but to no avail.

Who would think that EDS would get approval to put in a tender at 1% margin. I suppose I may have been at fault because I had just piped them for a larger SUN order.

I just keep thinking its only a matter of a couple more years, then
the SA Government should have completely severed the relationship here.

Would love to hear about other stories where EDS is running rampant undercutting the market to get market share!

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One thought on “How low is EDS when they are bidding at 1% on Oracle software?

  1. this is going to be an interesting market as they exercise their deeper discounts & try too keep the SAG clients using their expensive people…
    they have minimal skills however in this space and will not sell IBM at any price to SAG.

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