The counterattack of Hurd Hewlett-Packard

Shrinking markets and dwindling profits have left the IT giants struggling to reach around in an increasingly crowded environment, scrambling for each other's turf, blurring the boundaries between them.　　Article | The reporter Wang The source | The July issue of the Journal of Excellence If, for the past three years, HP CEO Hurd wielding a big stick to demonstrate his ability to execute and cost control, he is now at a critical juncture to prove his vision and guts. Although the global economic crisis has not passed, but the IT giants have tightened their belts, in their hands to reserve a large amount of cash to deal with this winter. It is time to spend the money on the right target.　　Shrinking markets and dwindling profits have left the IT giants struggling to reach around in an increasingly crowded environment, scrambling for each other's turf, blurring the boundaries between them. In early 2008, Businessweek wrote that Hurd was in the toughest time.　　This is not because of poor performance, but because Hurd's earlier compression of costs and increased operational efficiency, HP has made more than expected transcripts. But no one is immune to the global recession. In the first to second quarter of fiscal year 2009, HP's net profit fell by 13% and 19%, respectively, over a year earlier.　　Some investors are beginning to suspect that Hurd's hands are out of hand, as layoffs and cost-containment are used prematurely in the recession. This April, Oracle bought Sun for about 7.4 billion dollars.　　The result is far better for HP than IBM's acquisition, because IBM has long been the only real adversary, but Oracle's potential threat to itself has increased significantly. Just two months ago, Cisco launched a High-profile "unified computing" into the server sector. Hewlett-Packard said verbally that the move did not pose a threat to itself, but the response was already in progress.　　This June, HP decided to form a strategic alliance with Alcatel-Lucent, which will collaborate on the next-generation architecture of the communications network, providing new End-to-end customer solutions for both the corporate and telecom markets. In the face of the old enemy and emerging new competitors, with a wide range of product lines HP has no choice but to face the enemy, can maintain its own advantages. Hurd's new hope is to look at new trends in future technologies and to lay them out in advance.　　Mergers and acquisitions become the quickest way to seize new markets and win the favor of investors.　　Some experts say the smartest thing for HP is to buy SAP before IBM.　　Stop down three magic weapon HP has three magic weapons to deal with this crisis, that is, cost structure, product composition and excellent execution ability. Since his inauguration in 2005, Hurd has set himself a different style from his predecessor, Fiorina, who doesn't want to be a star.　　But the title of CEO of the world I T boss, Hurd is inevitably the focus of media commentary and attention. 2008 Top Ten most influential technology leaders in the US it websiteSelected, Hurd ranked first.　　This undoubtedly to HP in the financial turmoil in the performance gave full recognition.　　Hewlett-Packard China's chief executive has advertised to the "talent" reporter, Hewlett-Packard has three magic weapons to deal with the crisis, that is, the cost structure, product composition and excellent implementation capacity. If you want to put a few labels on Hurd, the first is the "strong sense of cost control", his motto is "Focus on and reduce all unnecessary expenses."　　When HP's net profit reversed in the first quarter of 2009, Hurd immediately announced that executives had been cut 15%-20% and average employees were down 5%. "HP is very focused on cost control and will help in a more advantageous position when demand recovers," he said. One analyst said. Hurd built a more streamlined and variable cost structure for HP, providing flexibility to lead in a competitive environment.　　Among them, Hewlett-Packard carried out a full range of it changes, the annual smooth savings of half the IT operating costs, this amount of more than 1 billion dollars. HP also has a wide range of product lines, from servers, storage, management software to desktops, notebooks, handheld computers, printers, scanners, and all of the IT giants are the most complete products.　　It is the largest PC manufacturer with the world's largest printer market and occupies the first or second place in almost every market area involved. This balance is also reflected in its business revenue composition, one-third from software, services, and Enterprise Server storage business, One-third from sales of PCs and other consumer products, and one-third from printers and other investment businesses.　　It is this diversified business and revenue model that makes Hurd more selective and profitable when confronted with changes in the external environment. In the face of a more drastic price war and profit pressures at the start of fiscal year 2009, Hurd suggested that the company needed to continue to surpass its rivals in the most critical part and win market share.　　And he is more cautious about future expectations, and he feels it is too early to say that the recession has bottomed out, and that Intel's CEO, Paul Otellini and Cisco's CEO Chambers, believe they have bottomed out. As a last resort, "HP's ability to execute has enabled it to break through and expand its revenues in challenging environments."　　"said Hurd.　　In fact, three years ago, Hewlett-Packard saw a possible slowdown in the economy, consumers change the frequency of the computer only four or five years, Hurd decided to focus on the content of design and innovation, so he hopes to find a mature PC replacement market.　　With the introduction of touch-screen computers and some easy-to-use software, HP has taken some market share from rivals such as Dell and Toshiba, and it is trying to persuade rich-world consumers to buy a second or third computer for their families to expand demand across the market.　　Whether it is for HP or its competitors, the current money is not a problem, the key point is that you have enough confidence in your vision? The stretched front has made HP's finances more robust in the crisis, but it hasIt's all embattled. When the rumors of IBM's acquisition of Sun were rife, Hurd responded, "I never remember the day when the market was not competitive ...　　The future will continue to see intensified competition in the market. " Yes. HP has begun to lay out for the future before the Giants scramble for S U N.　　In 2008, Hewlett-Packard bought the world's second-largest I-t service Enterprise E D, with 13.9 billion of dollars, and the world's largest corporate merger in 2008 had been questioned. Now, with the 2009 quarterly bulletin, opponents shut their mouths. In this grim economic environment, HP has doubled its service business in the first two quarters of the year, compared with the same period last year.　　In the first quarter, the profit of consulting and services amounted to 1.1 billion dollars, which became the 2nd business area for HP to profit more than 1 billion dollars per quarter from regular revenue. "The addition of EDS has given us a broader insight into the industry, helping us to help customers consider it changes from a longer-term perspective, providing us with a very large platform." "The character advertised said.　　Although rival IBM has successfully transformed from selling products to providing advisory services, the share of the business in HP has yet to improve, as the printer business was Hewlett-Packard's most lucrative business, and some even considered it a printer manufacturer.　　Although HP has significantly increased its competitiveness in the areas of system integration and so on, it cannot be overlooked that 70% of HP's revenue has come from outside the US, and as a service outsourcing company, E D S has yet to improve in emerging markets. Of course, that means more room for growth, because in the current economic climate, more and more customers need to use outsourced services to reduce costs. Currently, E D S industries involved in China include: finance, insurance, banking, manufacturing and the automotive industry.　　Recently, eds in China to the aviation industry in full March.　　The good news is that Hurd is determined to be a solution provider and to enhance software and services, and that HP will be the next global leader in IT services. Some analysts believe that if HP is not digesting EDS, it will certainly join the acquisition of Sun's war.　　Last October, HP also bought a storage company, Lefthand, with 360 million dollars, a storage area network system and virtualization product for midsize companies.　　Sources say that, including IBM and Dell, have been around the acquisition of talent, at the beginning of this year, IBM CEO Palmisano made clear that the company will be aggressive in the global recession, investment in research and development and acquisitions. For the other two potential rivals, Cisco and Oracle, the impulse to buy is in their blood.　　Cisco usually buys entrepreneurial small companies and quickly enters the market with the most growth potential, and Oracle, through a more aggressive approach, achieves the goal of destroying the enemy and expanding itself through mergers and acquisitions. Whether it's for HP or its competitorsNow, money is not a problem, the key point is that you have enough confidence in your vision? After the merger, can we successfully integrate this hurdle?　　The investment innovation business is expected to achieve an annual growth rate of 35.9% per cent for the unified communications and collaboration solutions market from now to 2015, according to a report released by Forresterresearch, an investigative agency. Two months ago, when Cisco, a former partner, climbed over a fence to get into the blade, hoping to get a slice of the server market, a vice president of Hewlett-Packard quickly countered, "You obviously won't let a plumber help you build your house." Soon, HP was on the move. June 16, Hewlett-Packard announced and VMware will be in virtual applications and other occasions to collaborate to provide users with integrated solutions.　　VMware is a company focused on virtualization technology, where the storage giant, EMC, is a major shareholder and Cisco has added its stake. Customers have the need to increase the data center, but too many servers, network products and other hardware time-consuming and energy-consuming.　　Companies such as Hewlett-Packard and Cisco all see customers simplifying it hardware requirements, but they all want to provide an End-to-end virtualization service, despite different starting points.　　Some analysts believe that as Cisco enters the server market, HP could retaliate by acquiring network equipment companies, including NetApp, Brocade communications systems and junipernetworks companies. HP first chose a strategic partnership with other companies.　　In May, Hewlett-Packard and Microsoft launched a 4-year global strategic plan, the two sides will jointly raise 180 million U.S. dollars, together to create a new unified communications system, information, video and voice communications integrated into the same portal, customers can log on through a variety of communications equipment.　　It has also established alliances with Alcatel-Lucent, a communications company, to receive 1000 employees from the rung IT infrastructure Department, thereby enhancing its architectural capabilities on the network and communication platforms. These actions point to unified communication and collaboration solutions.　　The annual growth rate of the market is expected to reach 35.9% from now to 2015, according to a report released by Forresterresearch, an investigative agency.　　At Hewlett-Packard, there is a "data-driven decision" approach that Hurd calls, and each business section has regular data to help determine which areas of hardware, software, and services are most deserving of attention. Obviously, the real opportunity is in the new field. Hurd has made it clear that he will work to make his pipeline full of new products and services with unlimited potential, and that HP is investing in a variety of innovations, including core PCs, printers, and corporate customer business.