Results 1 to 8 of 8
Like Tree5Likes
  • 5 Post By akshunj
  1.    #1  
    Because some may have trouble accessing the WSJ, much of the article is below.

    Summary: HP's recent moves are making investors and customers nervous.

    See: H-P's Customers Backing Off - WSJ.com

    Hewlett-Packard Co.'s recent strategic moves have shaken the confidence of investors. Now customers of the technology giant are also getting nervous.

    That applies to Ray Barnard, chief information officer of Fluor Corp., an engineering and construction company that spends around $25 million a year on new hardware and software. Fluor was recently considering buying high-end computers capable of displaying 3D graphics from H-P, as well as doing a pilot project involving tablets with the tech company.

    Now, however, "I've put that all on hold" and won't buy from H-P, he said. "It appears that they're lost right now."

    H-P's recent moves are making investors and customers nervous about the future direction of the company. WSJ's Ben Worthen reports on digits.
    .
    Mr. Barnard's decision echoes those of other corporate CIOs, many of whom are trying to make sense of H-P's announcement last month that it would spin out its personal computer business, kill off its TouchPad tablet and smartphones, and pay $10.2 billion for U.K. software maker Autonomy Corp. The announcements triggered a 20% decline in H-P's share price, though the stock has since recovered somewhat along with the broader market.

    Several H-P customers said they are most concerned about what they see as a lack of a clear direction from the world's largest tech company by revenue, signaled in part by H-P's decision to exit the PC business. H-P is currently the world's biggest maker of PCs by shipments and revenue.

    "This appears to just come out of the blue without a really good explanation," said Frank Cervone, vice chancellor for information services at Purdue University Calumet in Hammond, Ind. "It makes you wonder what the strategy really is and where they are going."

    Mr. Cervone buys servers and PCs from H-P, and was in the process of testing tablets from the company. He said that while he still plans to buy the servers from H-P, he will have to reassess his tablet plans. He is unsure how to proceed with a project for "thin-client" computers that store information on centralized servers, he said, something he would normally have worked on with H-P.

    ...H-P, meanwhile, has shifted into damage-control mode. H-P Chief Executive Leo Apotheker, who earlier this year touted the PC business as "an immense competitive advantage," recently traveled to New York, Boston, and London to meet with H-P shareholders to shore up support for a PC spinout and the Autonomy purchase. H-P's chief financial officer, Cathie Lesjak, and H-P Chairman Ray Lane have also spoken with investors.

    ...CIOs are adopting a wait-and-see approach. Darren Dworkin, CIO at Cedars Sinai Health System in Los Angeles, said he understands the business logic behind H-P's decision to exit the PC business and focus more on software—but remains disappointed in the move. "It would be hard for me to think that innovation in the PC is over," Mr. Dworkin said, comparing H-P's move to General Electric Co. getting out of light bulbs...
    Last edited by milominderbinder; 09/05/2011 at 11:26 PM.
  2. jp99's Avatar
    Posts
    403 Posts
    Global Posts
    411 Global Posts
    #2  
    Of course anyone who worked in GE's Consumer & Industrial division a few years back knows that's almost what GE did - C&I included Lighting and it was on the chopping block to be sold or spun off until the recession started. Decisions of top management at large corps seem prone to strangeness that no one comprehends.
  3. #3  
    We run over 1000 ProLiant G5s and about 800 or so ProCurve 2500 series switches and I myself (noted HP fan) have recommended not purchasing any more and re-evaluating our future refresh plans. They have proven their incompetence and ee can't risk our infrastructure any more than our current exposure.

    Ironically, we left Dell because *they* seemed unstable a few years back... :\
  4. akshunj's Avatar
    Posts
    379 Posts
    Global Posts
    380 Global Posts
    #4  
    Hopefully Leo is shown the door before the end of the year...

    -- Sent from my Palm Pre using Forums
  5. #5  
    its really amazing that the company officials who get paid millions could make such drastic decisions without so much as an explanation as the WHY its being done or HOW its going to benefit anyone (other than competitors).

    Maybe the numbers do show that getting out of the hardware business is a good idea. But how do you comfort a shareholder who bought into your company because you were a leading PC manufacturer? If your going to pull a carper out from under me, at least let me see the carpet you're replacing it with.
  6. #6  
    my prediction. hp psg --> splits off to compaq as it's own startup company (maybe a different name). they will make all of hp's prior laptops under the compaq brand. interesting to see if they make tablets / phones as well.
  7. #7  
    this is a big story, means they have to do something, outline a clear direction and show execution soon, they maybe have a month but maybe not as Oct Nov is when corporate yearly IT budgets are finalized.
  8. #8  
    Quote Originally Posted by Mhunterjr View Post
    its really amazing that the company officials who get paid millions could make such drastic decisions without so much as an explanation as the WHY its being done or HOW its going to benefit anyone (other than competitors).

    Maybe the numbers do show that getting out of the hardware business is a good idea. But how do you comfort a shareholder who bought into your company because you were a leading PC manufacturer? If your going to pull a carper out from under me, at least let me see the carpet you're replacing it with.
    They (officials) should make drastic decisions, but should keep mouths shut without revealing unfinished plans months before they can make some action. This whole PSG thing is probably based on strong and valid reasons, but way they handle this will cost HP badly. CEO and CFO acted like wimpy *******. It seems they are not built from material needed to handle such big transaction.

Posting Permissions