Ross Perot’s legacy extends far beyond his presidential runs. After selling EDS to General Motors for $2.5 billion in 1984, he founded Perot Systems in 1988, pioneering specialized IT services in healthcare and utilities. Despite early constraints tied to post-EDS restrictions, the company thrived through strategic acquisitions and disciplined execution. Perot’s hands-on leadership style and high standards shaped both the company culture and the modern IT services industry. His entrepreneurial journey offers valuable lessons in perseverance and vision.
The Birth of a Tech Giant: From EDS to Perot Systems
Visionary determination marked the 1988 founding of Perot Systems when Ross Perot and a small team established the company after the EDS sale to GM. Early on, contractual limits curbed direct competition with EDS, but operations still ramped quickly—by the early 1990s the firm had growing teams in the U.S., Ireland, and the U.K.
Perot Systems adopted disciplined fixed-price and outcomes-based contracts familiar from EDS while carving its own niche by targeting underserved mid-market clients that larger competitors overlooked. When Ross Perot decided to run for President in 1992, Morton H. Meyerson stepped in to lead the company. Regional banks and other regulated industries became early customers as the company distinguished itself in the market.
Navigating Early Challenges: The Non-Compete Years
While establishing the foundation for Perot Systems represented an ambitious beginning, the company faced meaningful constraints because of Perot’s post-EDS obligations. These limits affected which clients they could pursue during the first phase and delayed certain bids.
Despite assembling a talented team of EDS veterans, Perot Systems encountered early competitive headwinds typical of a start-up in a field dominated by giants. Even so, the team used the period to develop specialized expertise in regulated sectors—notably utilities and healthcare—positioning the firm for growth once restrictions fully expired. The steadiness through these years set the stage for later scale rather than derailing momentum.
Leadership Evolution and Corporate Vision
Following the initial period, Perot Systems underwent leadership transitions that shaped its trajectory. Ross Perot stepped back in 1992 to pursue the presidency, passing the torch to Morton H. Meyerson; later leadership included James Cannavino and then Peter Altabef, with Ross Perot Jr. serving as chairman to extend the family’s stewardship.
The organizational culture stayed anchored in Perot’s values while adapting to new market demands:
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A strategic focus on healthcare IT positioned the company ahead of industry trends
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Leadership comprised former EDS executives who maintained continuity while fostering innovation
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A hands-on, client-partnership approach emphasized long-term outcomes and employee loyalty
Much like other Texas growth stories that diversified smartly, Perot Systems expanded through focused specialization. The company was ultimately acquired by Dell for $3.9 billion in 2009, ending its independent chapter but cementing Perot’s impact on technology services.
Strategic Acquisitions and Market Expansion
Perot Systems’ growth also flowed from a carefully executed acquisition program that reshaped its market position. In 2007, the firm purchased QSS Group for about $250 million, nearly doubling its government revenue mix and enabling pursuit of larger federal contracts.
In healthcare, acquisitions including JJWild and Phoenix Health Systems strengthened application, infrastructure, and revenue-cycle services for hospitals and provider networks. This vertical depth helped diversify the business ahead of Dell’s 2009 acquisition at $30 per share, recognizing Perot Systems as a premier IT services provider.
Technological Innovation in a Changing Landscape
Three critical innovation themes defined Perot Systems across the 1990s and 2000s. The company advanced healthcare digitization through clinical and administrative systems integration and analytics that improved medical record workflows.
It built specialized platforms and consulting for energy and utilities, helping clients navigate deregulation, market operations, and asset systems. And it scaled IT outsourcing and managed services, anticipating enterprise needs for hybrid operations that bridged data centers and hosted environments. Despite the usual complexities of large client networks, Perot Systems showed agility in tailoring solutions to sector-specific demands, eventually employing ~24,000 people in 25 countries worldwide.
The Entrepreneur Behind the Company: Ross Perot’s Influence
The visionary entrepreneur who helped define modern IT services began far from boardrooms. After serving in the U.S. Navy and selling for IBM, Perot founded EDS with about $1,000, later launching Perot Systems in 1988. He had sold EDS to GM in 1984 for $2.5 billion, validating his business instincts.
His direct, outspoken leadership fostered a culture of high standards and client loyalty. You’ll recognize Perot’s philosophy in his hands-on approach and readiness to challenge convention when it hindered results. Beyond business, he paired entrepreneurship with philanthropy through the Perot Foundation, supporting veterans, education, and healthcare—broadening a legacy that transcended quarterly metrics.
Competing in the IT Services Arena: Differentiation Strategies
Amid a crowded marketplace, Perot Systems stood out through domain expertise—delivering tailored solutions for healthcare, government, and enterprise rather than generic IT offerings.
Partner integration complemented this focus, enabling broader capabilities while preserving core strengths. When Dell acquired Perot Systems for $3.9 billion, that approach accelerated by combining Perot’s industry knowledge with Dell’s infrastructure and services scale. Key differentiators included:
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Remote infrastructure management that extended beyond traditional staffing models
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Industry-specific solutions addressing unique operational needs
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Alliances that enhanced end-to-end delivery without diluting specialization
Global Footprint: International Growth and Development
Perot Systems quickly built an international presence central to its growth strategy. The firm established delivery and consulting centers in Europe and Asia, competing credibly against larger incumbents.
Its global workforce strategy proved effective, growing to tens of thousands of employees across dozens of countries while integrating acquisitions to bolster data warehousing, application services, and managed operations. This expansion rested on the early foundation laid by EDS-veteran leadership, even as the team avoided entanglements that could conflict with Perot’s public policy views.
Lasting Industry Impact and Business Philosophy
Enduring impact in technology services requires more than technical innovation, and Ross Perot embodied that truth. He prioritized people, integrity, and strategy, setting standards for client-centric delivery that influenced the broader IT services industry.
At the core was employee empowerment—his “know your people” practice fostered hands-on leadership and detailed engagement long before such ideas were fashionable. The company’s emphasis on commercial acumen within technical teams created an advantage in complex sales. Accountability was non-negotiable—when issues arose, owning the outcome and fixing the problem was cultural bedrock. That blend of excellence, sales rigor, and technical competence defined the Perot Systems imprint.
