EDS Merger Is Deja Vu for H-P Investors

The move will put H-P ahead of other tech services contenders including Accenture(ACN - Cramer's Take - Stockpickr), Fujitsu, Computer Sciences Corp(CSC - Cramer's Take - Stockpickr)and Dell(DELL - Cramer's Take - Stockpickr).

The notion of beefing up H-P's services business is sound, said the H-P institutional investor, noting that the deal is largely an affirmation of the IBM model.

But the concern on the Street revolves around whether or not H-P has picked the right company and the right way to go about it.

"You have to have your arms around what it's going to take to make this thing work. Nobody wants to buy an experiment," the investor said.

H-P was vindicated in its last big experiment, with the Compaq merger ultimately helping to transform H-P into the world's top PC player.

Now it will have to prove the Street wrong again.