Hewlett-Packard CEO insists it will not split sales

Léo Apotheker, who has been visiting Shanghai, Chongqing, Tianjin and Beijing with HP's Global Executive team (the world's head of the three business groups), announced new rumours in the US capital markets on June 29 that the next few new initiatives in the Chinese market are aimed at increasing investment, The rumor was that Blackstone and TPG, the private-equity fund, were showing interest in buying part of HP's business, June 30, when the market reacted quickly: HP jumped 2.39% per cent.

As in March, Lee Ai-ke needs to come out to dispel the rumor, he again stressed that HP will not split. This is the second time since Apotheker took office on November 1, 2010, the rumor that HP is selling part of the business, the last rumor came in March, before Hewlett-Packard unveiled a new strategy for Apotheker.

June 29, in the face of the press conference in China, Apotheker once again elaborated the new HP strategy, specifically four: first, in the management and optimization of the current IT environment; second, build and manage the next generation of cloud based architecture; third, realize seamless transition to mixed computing mode; Define and provide an interconnected world for individual consumers and business users. Around the four-point strategy, HP will focus on three major areas in the future: cloud, connectivity and software.

In fact, these four points do not constitute a clearly visible strategic map for retrace. It's more like industry trend analysis, it has been described more or less as a competitive environmental analysis that is available to almost all large IT companies: changes in computing patterns and the spread of networking technology are already an irreversible trend in the delivery of IT products and services. So, it environments built on traditional computing patterns there is no doubt that there is a need to manage and optimize the existing IT environment, and how to manage and optimize it, which is bound to transition to mixed computing mode, and to help customers transition to a mixed computing model, it product/service providers must have cloud-based architecture products, Otherwise, you can only become a system integrator; All of these lines will help redefine and provide an interconnected world.

Three more specific areas: cloud, connectivity and software, is undoubtedly the post-PC era IT companies need to Rimini Fortress, as the world's largest IT companies, Hewlett-Packard naturally can not lose language. Therefore, it is not HP's problem to do or not to do, HP's problem is that based on existing resources and capabilities, it is how to do? The new HP management, under the leadership of Lee Ai, needs to explain: Based on the above competitive environment analysis, how HP will organize and use the existing resources endowment, to rebuild the new ability to challenge the future? Is it necessary to rebuild HP to form a business model under the new situation?

Hewlett-Packard has been a hardware sales-oriented IT company, Hewlett-Packard 2010 (November 1, 2009 October 31, 2010) recorded 126 billion U.S. dollars turnover, including Hewlett-Packard Information Products Division (PSG), HP Printing and Imaging Systems Group (IPG) and Hewlett-Packard Enterprise Storage and Server business (ESS) contribution of about 40.7 billion U.S. dollars, 25.7 billion U.S. dollars and 18.6 billion U.S. dollars, the total of three accounted for the total turnover of about 67%. The main business of HP's PSG and IPG is to sell computers (including laptops, desktops, tablets, workstations, etc.) and printers and supplies. The HP 2010 Service business income is only an increase of 0.7% to 34.9 billion U.S. dollars, in other words 2008 years spent 13.2 billion U.S. dollars to buy IT services company EDS, has not reflected the synergy after the merger growth effect.

In addition, Hewlett-Packard is divided into three business groups: PSG, IPG and EB (Enterprise business Unit, formerly known as TSG, the Technical and service business unit), relatively independent. Previously, the senior team of Apotheker and Hewlett-Packard spoke of HP's competitive advantage, saying that HP's complete business chain, from hardware to software to consulting services, from enterprise applications to consumer applications. The question is, under the relatively independent framework of the current three business groups, how can synergies be achieved, and whether new departments need to be set up to knock down the "wall" between business groups? Therefore, how to achieve synergy, not only after the purchase of EDS merger and acquisition integration problem, but also under the new strategy, the whole HP company face challenges.

Take "cloud" as an example, in short, "cloud" is a kind of hardware and software mixed body. In the cloud computing business, there are two modes of business. One is to sell hardware, software, or consulting services by helping customers build cloud environments, while the other is selling cloud computing services. Which model would HP prefer, or both?

In fact, whatever the pattern, all means that HP needs to strengthen its ability to deliver solutions, which may require the "walls" of the three business groups to be shared, to achieve synergy between technology and customers, to use a window at the front desk to understand the many needs of customers, and then to integrate internal resources and capabilities to respond to customer needs. Otherwise, HP's new strategy may not solve the problem of HP's part of the business, the cloud strategy under the development of HP, the doubt has not been dispersed.

Hewlett-Packard's IPG group is actively layout cloud printing strategy, as HP's most stable business, Hewlett-Packard Printing and imaging business has been a market leader in the market share has an absolute advantage. At HP Global Executive Vice president, IPG Business Group President Vimaisi Choshi (Vyomesh Joshi) and the author of the exchange, Vimaisi elaborated the IPG business Group Cloud Printing strategy, "Each cloud printer has a corresponding email address, you can connect to the Internet, This kind of service can be enjoyed by ordinary consumers, small and medium business customers, and large business customers with this printer. They can enjoy print services in any location (whether in the airport or in the mobile) through any terminals (such as smartphones, tablets, laptops, desktops), which should be a very central innovation for HP. "Vimaisi said.

Vimaisi's description makes it easy to think of a business model in which Hewlett-Packard puts in the right amount of HP's wireless printer in public to allow any customer who owns HP's printer to use it whenever they need it. This is a business model of cloud services, but the current HP IPG group does not attempt this kind of business, after all, compared to the direct sales of printers and related supplies of traditional business, the cloud services business model is reflected in the financial statements will be the first cost and cost of expenditure, and then may be slow and stable service income. Therefore, under the cloud printing strategy, IPG's goal is to sell at least 100 million "cloud printers" worldwide in 2013, and they currently sell 20 million units worldwide. But Vimaisi does not deny the possibility of such an attempt, saying that HP "will also consider such a business model".

Let's assume that if HP were to put cloud printers in a number of public places, users would be able to complete the print task at any time through any HP terminal device. This should stimulate market demand for HP terminals, after all, based on the cloud, which provides a unique value proposition. But what should be done about the financial impact of this initiative? Does the existing IPG group's business assessment target lead to IPG group decision makers preferring to sell hardware rather than business model adjustments?

And the same problem, will also appear in the Lee AI Division design of the four-point strategy implementation.

While a group of senior executives, including Apotheker, have denied that HP will make organisational adjustments, changes are taking place slowly. At the end of last year, shortly after taking office, Apotheker pushed a "alternative commercialization" of technology that has long been used in HP inkjet printers, according to Bloomberg Business Weekly, and Hewlett-Packard developed a sensor for Shell to monitor the stock of oil depots using the technology that the IPG department has always mastered.

Another noteworthy change is that HP appointed HP Global Executive Vice president, PSG business Group President Tode Bradley (Todd Bradley) and global executive vice president, IPG Business Group President Vimaisi Choshi (Vyomesh Joshi) in mid-June. As the HP Global Executive committee of the China Market and senior supervision of the Indian market.

These local changes may help the observer to gradually peel off the HP cloud.

(Responsible editor: admin)