Blog Post

New HP CEO, new plan: It’s keeping the PC biz after all

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

Sorry Dell, Lenovo and Acer: HP’s not abandoning the PC business after all. The world’s largest maker of PCs announced moments ago that after thinking long and hard about it, they’re going to keep on making computers after all.

New President and CEO Meg Whitman, recently elevated to the position from member of the board, said this in a press release Thursday:

“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG [Personal Systems Group]. 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.”

The evaluation of the business meant HP brought in experts from all the different departments at the company and crunched numbers. Only then did HP see “the depth of the integration that has occurred across key operations such as supply chain, IT and procurement.” That “data-driven evaluation” also showed “the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value.”

It wasn’t a given that HP would wind up at this conclusion. When HP’s board dumped Leo Apotheker as CEO last month and hired Whitman, both board chairman Ray Lane and Whitman publicly said they didn’t disagree with Apotheker’s general direction for the company, which included spinning off PCs.

At the time Lane said, “From what I know now, the strategy is right and the initiative we undertook on August 18 [is] right,” and Whitman said that while she supported the strategy, she would review all the initiatives.

What’s not readily apparent is what this means for the company’s huge bet on software and services with Autonomy, the deal on which it spent nearly all its cash, and if this makes them regret the debacle regarding WebOS.

6 Responses to “New HP CEO, new plan: It’s keeping the PC biz after all”

  1. Daniel Memetic

    I don’t care about HP anymore. It’s gonna take something beyond-revolutionary for me to feel comfortable buying anything from them anymore. They didn’t have much of a reputation for reliability of their computers as it is, and now after the whole fiasco with the TouchPad, Autonomy, and hiring that CEO with a history for abusive behavior (on a whole different level than Jobs) I simply can’t imagine myself trusting this company on anything.

  2. Yi Peng Yuan

    [ SOS ] Complaint about Human Rights Violations by IBM China on Centennial

    Please Google:

    IBM detained mother of ex-employee on the day of centennial
    How Much IBM Can Get Away with is the Responsibility of the Media
    Tragedy of Labor Rights Repression in IBM China

  3. To me new HP CEO is starting on the wrong foot! HP should have sold its PC biz at the time it was merging with Compaq, instead of buying Compaq. How long are they going to suffer in the commodity space?

    Recent moves by CEO’s, including the one by Netflix CEO, just indicate that nobody want to take tough decisions.