By 24/7 Wall Street
Publication Date: 2026-11-04 04:04:00
Ross Perot quit IBM in 1962 after they capped his commissions, borrowing $1,000 to start Electronic Data Systems (EDS). He built EDS by offering integrated hardware and software services, landing major clients like Frito-Lay and capitalizing on government contracts. By 1984, General Motors bought EDS for $2.5 billion to improve its computer systems, though Perot was later forced out. IBM eventually entered the services market Perot pioneered but much later, highlighting the value of recognizing unmet customer needs and fair compensation for innovation.