Hewlett-Packard becomes HP Inc. and Hewlett Packard Enterprise

by Mark Tyson on 2 November 2015, 14:36

Tags: Hewlett Packard (NYSE:HPQ)

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Hewlett-Packard today officially split into two separately listed public companies. HP was founded in 1939 and went on to prosper and survive through many business and market challenges. Now, that 50,000 employee strong corporation is no more, replaced by HP Inc. and Hewlett Packard Enterprise (HPE). The move had been planned since last year in order to make HP more agile and responsive to the respective segments of the markets it serves.

The Hewlett-Packard founders' wooden garage

HP Inc will focus on personal computers and printers, Hewlett Packard Enterprise will concentrate on commercial computer systems, software and tech services. PC industry veteran Dion Weisler will lead HP Inc. and the last CEO of HP, Meg Whitman, will run HPE. "Each company will do core things better," Whitman told investors at a conference last month.

The split in HP is roughly 50:50 with each spinoff expected to generate about $50 billion in sales next year, reports CNBC. While some analysts talked about the slowness of the old HP to adapt, missing the emergence of the web and of mobile, some see negatives in the new HP twins as having less clout than the old mega corporation, and not really being more agile.

In an official press release about the start of a 'new Era of Innovation', HP Inc. said that it would "keep reinventing itself, its technologies and what tomorrow holds". If PC and printing markets remain difficult it will be pursuing growth in "adjacent markets, such as copiers, graphics printing and commercial mobility in key verticals" and continue to push into 3D printing.

HPE says it will provide "cutting-edge technology solutions customers need to optimize their traditional IT while helping them build the secure, cloud enabled, mobile-ready future that is uniquely suited to their needs". Continuing the corporate-speak it says it will focus on four key areas which include; building hybrid tech infrastructure, empowering data-driven management, protecting digital enterprise, and offering best-in-class experiences for employees, customers and partners.



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HPE says … it will focus on four key areas which include; building hybrid tech infrastructure, empowering data-driven management, protecting digital enterprise, and offering best-in-class experiences for employees, customers and partners.
Hmm, undoubtedly the "New Style of IT“ (some more HPE corporate speak for you) will generate some genuinely interesting setups, but I have a problem trying to square the aim of ”offering best-in-class experiences for employees“ with headlines like ”Hewlett-Packard's latest job cuts would fill a small city“ (Fortune) and ”HP to slash up to 30,000 jobs ahead of split“ (FT).

There's also the small matter of HPE's board stating that they're going to move more and more business ”to less costly locations" - which common-sense would dictate means a lot of P45's for those poor blighters in the US, EU and UK in addition perhaps to the slash ‘n’ burn that they already announced.

Given I've got HPQ shares I hope I'm wrong and the company goes from strength to strength, buoyed up by those many talented individuals that they have (at the moment?). However,…

Sorry if this sounds bitter, but I am.
Dunno about anyone else, but HP seem to me to just be suffering massively from poor leadership. Fiorina, Hurd, Apotheker and now Whitman. They just sold Tipping Point to Trend Micro for what I hear is $300m USD - that seems pretty cut price for a highly regarded IPS offering in a market where intrusions are making big news on a regular basis.