News Comment: HP wants to be IBM but more like Cisco

Beijing Time June 15 news, American columnist Paul · R. Monica (http://www.aliyun.com/zixun/aggregation/13830.html ">paul R. La Monica") wrote on CNN today that HP wants to be the next IBM. The original passage is as follows:

HP wants to be the next IBM. IBM, a sophisticated technology company with a high market capitalisation, continues to win the applause of Wall Street and deliver beautiful growth rates. For HP, it is a bit unfortunate, and it looks more like the next Cisco-maturity, the market value of the supermarket, but because of the faint recruit to be abandoned by investors.

In the 2010 Dow Jones Industrial Average, HP's shares were lagging behind. By Monday, its share price had fallen 18% per cent this year. Of the Dow Jones stock index, Cisco is the only bad performance.

At the same time, IBM is intermittent. IBM's share price has risen by nearly 12% in 2011, and the price is now 6% lower than the all-time high, and it's a good time to celebrate a centenarians birthday.

Like IBM, HP has a wide range of technology businesses, hardware, software and consulting services. But like Cisco, HP has been forced to restructure its executives to tell investors that they are back on track.

In the evening of Monday, Hewlett-Packard reorganized, Cao (Chief Administrative Officer) and CIO both left, Cao position was terminated.

From now on, the three major departments of the helm are directly to CEO Apotheker report.

Through these moves, it is hoped that HP will find a focus on higher-margin businesses, such as software, and further the growth of business, such as storage and services.

HP's print business is a money-making machine, but is its growth prospects bright and limitless? and the consumer unit, HP's PC sales have slipped and, worse, margins are extremely thin.

When he was named Hewlett-Packard CEO, Apotheker was official SAP, and investors took for granted that Hewlett-Packard would be doubling the software industry. In Hurd's time, Hewlett-Packard made some software acquisitions. Some experts believe that HP buys palm for webOS, which attracts HP more than hardware.

But for Hewlett-Packard, the new goal is not to beat Dell, which makes hardware almost unprofitable. Its goal is to become corporate software giants such as SAP, Microsoft, IBM and Oracle.

"When I tracked HP, it lagged behind in the software, and now I'm an old man, and I'm still behind," Marvell Business Research, a science and technology firm, analyzed Shige Tesle (Ezra gottheil). The software is profitable, and in this one HP has to do more. ”

It's too early to tell Lee Ai, even if HP buys more on software and services, investors shouldn't blame HP. In the reign of Mr. Hurd, investors were spoilt, and Hurd courted them by cutting costs and expanding profits.

Gottesle said: "Hurd adopted a rather tight strategy to get the company through the recession when the company's revenues were extremely tight, but now the extra investment is right." ”

Jeff Fidacaro, an analyst with Susquehanna Financial Group, said the company's strategy was still to be reflected in dividends, and investors were impatient. He thinks investors will remain skeptical if HP's profits are chronically sluggish. Analysts expect HP's profit growth for the 2011 fiscal year (1 years to October) to grow below 10%, and a further slowdown in the 2012 fiscal year to 7%.

(Responsible editor: Duqing first)