HP to Keep PC Division

Image representing Hewlett-Packard as depicted...

PALO ALTO, Calif., Oct. 27, 2011 – Meg Whitman, HP president and chief executive officer made the following statement “HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees. HP is committed to PSG, and together we are stronger.”

To see the full statement here.

A strategic review involving experts from across HP revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement. It detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value. It also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.

Way to go HP!!

How much did that report cost though? I am pretty shure that I could have written that on the back of a paper napkin free of charge!

The plan to sell PSG was part of Mr Apotheker’s strategy to refocus HP on software and cloud services.

But within months of being appointed in November last year, shareholders and analysts became uneasy about his planned changes and subsequent acquisition of  the UK software company Autonomy.

HP shares fell by 20% the day after the now ex CEO of HP Leo Apotheker announced the possible spin-off of the PC arm, and went on to lose 40% of their value during his tenure.

After Meg Whitman statement shares in the company rose 4.8% on Thursday.

So Leo.. just when will the PC be on its last legs? It look like it may yet out live your Leo Apotheker.

So here is looking forward to so new year with HP new PC, and building windows 8 devices.


About Joseph Leon Hall
I am a Systems Administrator, Network Engineer and Senior Technical Support Analyst and Microsoft evangelist. I spend my work time looking after networks, servers, desktops, laptops, and people. You ask wy people? That’s because in any network people matter. ”I am a PC! I am NOT a Mac nor a I a Chrome”

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