Matthew King
Advanced Technical Writing – Section 144
October 11, 2009
Highly Ranked Texas Companies Compared
In preparation for a family move upon completion of my degree in Information Technology, I chose to research companies in Texas. The three companies I explorein this paper are HP Enterprise Services, National Instruments Corporation and Rackspace® Inc., all of which are in the information technology field. All three companies rank in the top 100 Fortune 500’s Best Companies to work for the year 2009. HP Enterprise Services,formerly known as Electronic Data Systems Corporation (EDS), is part of the Hewlett Packard family and ranks number nine. Rackspace® Inc.ranks number 43 with National Instruments having a ranking of number 69 in the Fortune 500 magazine.[1] All three of the companies are in the Software Publishers or Custom Computer Programming Service according to the North American Industry Classification System (NAICS)[2] and Computer Programming Services or Prepackaged Software according to the OSHA Standard Industrial Classification (SIC) system.[3] Two of the three companies I chose to research I have a connection to in some way or another. I explore each further to help decide which company will fit best for me. The areas I research include their potential for staying in business, the products they offer and company history. I also look into the size of the company, its and my earning and growth potential, the work environment and the benefits they offer. Other areas that I would need to take into consideration are the area where the work is located, the environment in which I would want to raise my family, and what community involvement is available. I hope to decide which company would be the best fit for my family and me.
National Instruments Corporation
Incorporated in Texas in 1976 and reincorporated in Delaware in 1994, National Instruments Corporation’sheadquarters are inAustin, Texas. They produce software and hardware productsthat take advantage of information technology to bringincreasing efficiency and precision to measurements and automation applications that scientists and engineers use in a wide range of industries.[4]
National Instruments has 5,157 employees with approximately half of the employees in the United States (2,527) as of December 2008.(Figure 1) The revenue per employee was $158,677 in December 2008.4 (Figure 2) The company’s revenue in 2008 was $765 million, up from $740 million in 2007 and $660 in 2006.[5](Figure 3)
National Instruments has 26,460stockholders as of February 2009 and a return on assets (ROA) of 10.25%, a return on equity (ROE) of 12.76% and a return on investment (ROI) of 14.40% according to their auditor Ernst & Young LLP.4(Figure 4)
According to employees of National Instruments, what makes the software company so great to work for is its laid-back atmosphere. The number of new jobs at the company in 2008 was 174, which was an 8% increase for that year. The average salaried employee earned nearly $75,000 per year and hourly employee earned $35,000 per year.1(Figure 5) Benefits include medical, dental and vision; a company performance bonus; 401k and employee stock purchase plan; life insurance and long term disability; tuition reimbursement and on-site fitness center.[6]
Rackspace® Inc.
Incorporated in Delaware in 2000, Rackspace® Inc.’sheadquarters are inSan Antonio, Texas with other branches in Austin and Grapevine, Texas. The company provides web hosting and cloud computing services as well as support for websites, web-based databases and the IT systems they provide.[7]
Rackspace® has 2,611 employees with approximately 500 employed outside the United States as of September 2008.(Figure 1) The revenue per employee was $203,171 in December 2008.7(Figure 2) Their revenue in 2008 was $531 million, up from $362 million in 2007 and $223 million in 2006.[8](Figure 3)
Rackspace®has 477 stockholdersas of February 2009 and a ROA of 4.39%, a ROE of 11.81% and a ROI of 10.29% according to their auditor KPMG.7(Figure 4)
Rackspace®job growth last year was 59% with 729 new jobs available and 19,000 applicants. The number of job openings as of January 2009 was 100. The average salaried employee earned nearly $60,000 per year and hourly employee earned $42,000 per year.1 (Figure 5) Company benefits include 100% health care coverage, performance bonus, 401k, on-site fitness center, compressed workweek and telecommuting.[9]
HP Enterprise Services
Incorporated in Texas in 1962 and reincorporated in Delaware in 1994, HP Enterprise Services’ headquarters are inPlano, Texas.[10] The company provides various technology services including design, construction or management of network infrastructures and information systems as well as application and business process outsourcing.[11]
EDS had 139,565 employees as of January 2008. (Figure 1) The revenue per employee was $158,593 in January 2008.10 (Figure 2) Their revenue in 2007 was $22,134 million, up from $21,268 million during the 2006 calendar year.11(Figure 3)
EDS has 98,800stockholders as of February 2008 and a ROA of 3.85%, a ROE of 8.14% and a ROI of 9.41% as of December 2007 according to their auditor KPMG LLP.10(Figure 4)
Upon reviewing the companies and theirbenefits, I think they all would fit well with my skills, interests and personality. EDS recently sold to Hewlett Packard and this could help them to grow even more, based on the Hewlett Packard name. The average salary seems to be approximately the same across the board so there is no advantage to any one company. HP Enterprise Solutions has many more employees and jobs so I might have a better chance obtaining a job with the company because of this and my prior experience. Rackspace seems to be a smaller company but has the most revenue per employee. The previous earning of Rackspace® is smaller than the two other companies but continue to do well and improve upon technology innovations including cloud computing. Since the acquisition of EDS into the Hewlett Packard fold, there has been pay cuts for EDS employees to make them more inline with Hewlett Packard employees with the same or similar job descriptions. Average salaries are not available for HP Enterprises since the new acquisition, but the average annual salary for an employee at National Instruments makes $15,000 more than one at Rackspace® Inc. National Instruments continues to grow and their work environment seems to be comparable with Rackspace.
So how do I make a decision? They are all located in different areas in Texas. Do I want to work in San Antonio, Austin or Plano? I must consider the best place to raise a family. Austinranks number 11 and San Antonio ranks number 57 according to Children’s Health Magazine.[12]
I have previous experience with working for Electronic Data Systems (EDS) while recalled in the United States Navy. EDS is responsible for incorporating and managing the Navy and Marine Corp Internet (NMCI) that is in use by the Navy and Marines today. My experience as a Systems Administrator while working with NMCI and 20 years of military service should give me an advantage when trying to obtain a job with the company.
I lived in San Antonio for quite some time and am very intrigued by the prospect of working for Rackspace® Inc. Not only am I interested in moving back to San Antonio,the company seems like a wonderful place to work. In an article by Ellen Simon, “Employers Study Applicants’ Personalities”, the Rackspace CEO states “We’d rather miss a good one than hire a bad one” when it comes to hiring an employee.[13] I think it is most important to work in an environment with people whom you can get along. In addition, observations I have had as a friend/fan of Rackspace’s Facebook and Twitter accounts the employee’s really do enjoy their jobs.
National Instruments is also a strong possibility for me because of the work environment and the benefits they provide. I spent the last 6 years of my career working in the water utilities area and the services that the company provides fit into my recent experience.
There are great possibilities for all three companies. HP Enterprise Services recently eliminated numerous personnel and made across the board pay cuts so that may not be the best option. I still would like to interview with all three companies, but I am leaning towards obtaining a position with Rackspace® Inc. The reason being is that I am interested in where they are going in the future and feel my job skills fit best with this company. I am intrigued by cloud computing and the future opportunities it will be provide. I also look forward to moving back to San Antonio with the cheaper cost of living and price of homes. I believe Rackspace® will be the best fit for my family and me.
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Figure 5
Works Cited
Children’s Health Magazine. (2009). The 100 Best (and Worst) Places to Raise a Family. Retrieved October 11, 2009, from
CNNMoney.com. (2009, February 2). 100 Best Companies to Work for 2009. Fortune MagazineRetrieved October 10, 2009, from
Datamonitor. (2008, July). Electronic Data Systems Corporation: Company Profile. Retrieved October 10, 2009, from MarketLine database.
Electronic Data Systems Corp. (2008, January 1). Annual report. Retrieved September 9, 2009, from Mergent Online database.
National Instruments Corp. (2009). Employee Benefits - National Instruments. Retrieved October 9, 2009, from
National Instruments Corp. (2008, December 31). Annual report. Retrieved September 9, 2009, from Mergent Online database.
Rackspace® Inc. (2008, December 31). Annual report. Retrieved September 9, 2009, from Mergent Online database.
Rackspace® US, Inc. (2009). Employee Benefit Packages at Rackspace. Retrieved October 10, 2009, from
Simon, E., & Writer, A. B. (2007, November 5). Employers study applicants' personalities. Associated Press Online,
Standard & Poor’s. (2009). National Instruments Corp. Stock Report. Retrieved October 10, 2009, from Standard & Poor’s NetAdvantage online database.
Standard & Poor’s. (2009). Rackspace® Inc. Stock Report. Retrieved October 10, 2009, from Standard & Poor’s NetAdvantage online database.
U.S. Census Bureau. (2007). North American Industry Classification System (NAICS). Retrieved October 10, 2009, from
U.S. Department of Labor. (2007). SIC Division Structure. Retrieved October 10, 2009, from
[1]CNNMoney.com. (2009, February 2). 100 Best Companies to Work for 2009. Fortune Magazine Retrieved October 10, 2009, from
[2]U.S. Census Bureau. (2007). North American Industry Classification System (NAICS). Retrieved October 10, 2009, from
[3]U.S. Department of Labor.(2007). SIC Division Structure. Retrieved October 10, 2009, from
[4] National Instruments Corp. (2008, December 31). Annual report. Retrieved September 9, 2009, from Mergent Online database.
[5]Standard & Poor’s. (2009). National Instruments Corp. Stock Report. Retrieved October 10, 2009, from Standard & Poor’s NetAdvantage online database.
[6]National Instruments Corp. (2009). Employee Benefits - National Instruments. Retrieved October 9, 2009, from
[7] Rackspace® Inc. (2008, December 31). Annual report. Retrieved September 9, 2009, from Mergent Online database.
[8]Standard & Poor’s. (2009). Rackspace® Inc. Stock Report. Retrieved October 10, 2009, from Standard & Poor’s NetAdvantage online database.
[9]Rackspace® US, Inc. (2009). Employee Benefit Packages at Rackspace. Retrieved October 10, 2009, from
[10] Electronic Data Systems Corp. (2008, January 1). Annual report. Retrieved September 9, 2009, from Mergent Online database.
[11] Datamonitor. (2008, July). Electronic Data Systems Corporation: Company Profile. Retrieved October 10, 2009, from MarketLine database.
[12]Children’s Health Magazine. (2009). The 100 Best (and Worst) Places to Raise a Family. from
[13] Simon, E., & Writer, A. B. (2007, November 5). Employers study applicants' personalities. Associated Press Online,