EDS has dumped IBM and signed a landmark contract with Borland for its application lifecycle management solutions.

The multi-year, multi-million-dollar deal is a major blow for IBM/Rational, whose technology will now be replaced by Borland's. It will become the global standard for EDS' software development and delivery infrastructure, encompassing tens of thousands of seats worldwide.

One of the first rollouts of the Borland technology will be in Adelaide, Australia, at what currently is EDS' world center of excellence for Rational. Borland will supply a range of management functions to EDS including requirements management , configuration management, defect and change tracking, object and class modelling, and memory and profile testing.

Both EDS and Borland have so far refusedto comment, although the deal has been announced internally at both companies.

It will be a long process moving Borland into place however: EDS is not going to pull Rational's tools out immediately, giving IBM some time at least to lick its wounds.