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(eWeek)   HP to sell off underperforming businesses ... which is pretty much all of HP   (eweek.com) divider line 32
    More: Fail, Hewlett-Packard, Leo Apotheker, Project Portfolio Management, business unit, EMC, temperament, Securities and Exchange Commission, businesses  
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1303 clicks; posted to Business » on 06 Jan 2013 at 6:52 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-01-06 07:16:07 AM
I'm pretty sure servers, storage and consulting are still profitable. The rest, not so much.
 
2013-01-06 07:58:57 AM

simplicimus: I'm pretty sure servers, storage and consulting are still profitable. The rest, not so much.


For now.

Traditional storage vendors like HP are under pressure from a wave of new technologies and architectures. HP probably needs to acquire an innovative storage startup to refresh its business -- and given the state of HP's balance sheet, it's not in a good position for making acquisitions.

As for consulting, HP wrote down a big chunk of the value of the EDS acquisition two quarters ago amid long-standing complaints that it has failed to keep its consultants' skills up to date or to retain good people.

(Actually, the numbers in the EDS debacle are eerily reminiscent of the Autonomy story minus the accusations of accounting shenanigans.)

HP's big cash cow, of course, is printer supplies -- and in that regard it might suddenly find itself the new Kodak...
 
2013-01-06 08:04:06 AM
If I were running HP, I'd be spreading a bunch of seed money on a dozen concepts that are small now but could possibly be save-the-company big in a decade -- 3D printing comes to mind -- rather than throwing billions at mature markets or bet-the-company acquisitions.

Of course, if I were running HP I'd have appointed Ann Livermore CEO instead of Fiorina and we wouldn't even be having this conversation.
 
2013-01-06 08:10:26 AM

czetie: If I were running HP, I'd be spreading a bunch of seed money on a dozen concepts that are small now but could possibly be save-the-company big in a decade -- 3D printing comes to mind -- rather than throwing billions at mature markets or bet-the-company acquisitions.

Of course, if I were running HP I'd have appointed Ann Livermore CEO instead of Fiorina and we wouldn't even be having this conversation.



This. I've been very pleased with HP printers, long-lived workhorses that they are. And from what I've read about Ann Livermore, she'd definitely make a better CEO than the stream of flashy sales weasels/failed politicians they've allowed to "lead" the company for the past few years.
 
2013-01-06 08:18:49 AM

WordyGrrl: This. I've been very pleased with HP printers, long-lived workhorses that they are. And from what I've read about Ann Livermore, she'd definitely make a better CEO than the stream of flashy sales weasels/failed politicians they've allowed to "lead" the company for the past few years.


Meh, working desktop support I've grown to hate the newer HP printers. It's hard to get just drivers without the 400mb bloatware package they want you to use or to install a printer driver without the printer being connected to the PC at that exact moment. Also dropping driver support for "legacy" printers when they are still sitting on store shelves is amusing as well.
 
2013-01-06 09:00:08 AM
I just had my first encounter with HP tech service 11 months after getting a new computer and was entirely satisfied. It was the first problem I've had.

On returning from a bathroom break, I was confronted with a black screen of death and hadn't touched the computer to screen connections, etc.  The monitor self-test revealed it was fine. Short of rechecking the connections and restarting the computer five times, what do you do?  Their guy talked me through pulling and reinstalling the memory.  Happy ending.

Thanks HP.
 
2013-01-06 09:59:07 AM

czetie: simplicimus: I'm pretty sure servers, storage and consulting are still profitable. The rest, not so much.

For now.

Traditional storage vendors like HP are under pressure from a wave of new technologies and architectures. HP probably needs to acquire an innovative storage startup to refresh its business -- and given the state of HP's balance sheet, it's not in a good position for making acquisitions.

As for consulting, HP wrote down a big chunk of the value of the EDS acquisition two quarters ago amid long-standing complaints that it has failed to keep its consultants' skills up to date or to retain good people.

(Actually, the numbers in the EDS debacle are eerily reminiscent of the Autonomy story minus the accusations of accounting shenanigans.)

HP's big cash cow, of course, is printer supplies -- and in that regard it might suddenly find itself the new Kodak...


All this cloud crap is based on storage. Re:EDS: I worked in a business that used them. 6 different applications on 6 different platforms. Good revenue for EDS. And yes, HP/Compaq spends little money on training.
 
2013-01-06 10:40:14 AM

simplicimus: And yes, HP/Compaq spends little money on training.


Is there any large IT/Computing business these days that does? I was sure the training regiment was just the implied threat that if employees didn't stay current on their own dime, the company had even more reasons to outsource the job to India.
 
2013-01-06 10:44:08 AM

Sergeant Grumbles: simplicimus: And yes, HP/Compaq spends little money on training.

Is there any large IT/Computing business these days that does? I was sure the training regiment was just the implied threat that if employees didn't stay current on their own dime, the company had even more reasons to outsource the job to India.


When I was at HP/Compaq, consultant training was 6 days a year with marketing PowerPoint slides. No depth, no details and a large product line.
 
2013-01-06 10:55:17 AM

simplicimus: All this cloud crap is based on storage. Re:EDS


Not entirely. Hadoop has allowed garbage storage is taking a big chunk out of the heavy iron storage market. If that weren't enough, new players like Nimble can deliver similar or better performance for dimes on the dollar.
 
2013-01-06 10:56:05 AM
Boot the farking bean counters and put the company back in the hands of the engineers.
 
2013-01-06 11:10:54 AM

dionysusaur: Boot the farking bean counters


This works in every industry, including the bean industry.
 
M-G
2013-01-06 12:00:39 PM
For Wintel, I only buy HP. In the rare event of an issue, a ticket to the ITRC has parts in my hand the next morning. Dell, OTOH, can take a week before your system is actually fixed.
 
2013-01-06 12:22:39 PM

M-G: For Wintel, I only buy HP. In the rare event of an issue, a ticket to the ITRC has parts in my hand the next morning. Dell, OTOH, can take a week before your system is actually fixed.


Silicon Mechanics, from my experience, has better support than HP at a dime on the dollar. We often have replacement parts same day.
 
2013-01-06 01:01:14 PM

M-G: For Wintel, I only buy HP. In the rare event of an issue, a ticket to the ITRC has parts in my hand the next morning. Dell, OTOH, can take a week before your system is actually fixed.


Maybe you should have picked a higher service level with your Dell. Just sayin'.
 
2013-01-06 02:15:03 PM
I heard the inside scoop from HP employees. Meg Whitman is planning buying Hostess, because loves them Twinkies.
 
2013-01-06 02:17:13 PM

rosebud_the_sled: I heard the inside scoop from HP employees. Meg Whitman is planning buying Hostess, because loves them Twinkies.


Sure, but the Twinkie shell for a penny, then charge a dollar for the filling.
 
2013-01-06 02:24:37 PM
Since they are probably moving all of their network development to China, you can be assured that the Chinese government will be putting back doors into every HP switch and cloud server out there. That place is a one way door of technology, everything that goes in, never comes out.

Ten years ago (possibly longer), HP actually stood for something. Now, it is just a bunch of frightened 'tards wondering when they are going to be sold off or fired. The only employees left at HP now are those that are too worthless to be able to find another job or too timid/lazy to try.
 
2013-01-06 02:28:49 PM

notmtwain: I just had my first encounter with HP tech service 11 months after getting a new computer and was entirely satisfied. It was the first problem I've had.

On returning from a bathroom break, I was confronted with a black screen of death and hadn't touched the computer to screen connections, etc.  The monitor self-test revealed it was fine. Short of rechecking the connections and restarting the computer five times, what do you do?  Their guy talked me through pulling and reinstalling the memory.  Happy ending.

Thanks HP.


What you have to wonder though is what on earth managed to dislodge the memory enough to require a reseating of it while you were in the bathroom. I've met many a situation where memory gets dislodged in transport, initially mis-installed or as a result of percussive maintenance but never while a system is just there running.
 
2013-01-06 03:07:46 PM

simplicimus: czetie: simplicimus: I'm pretty sure servers, storage and consulting are still profitable. The rest, not so much.

For now.

Traditional storage vendors like HP are under pressure from a wave of new technologies and architectures. HP probably needs to acquire an innovative storage startup to refresh its business -- and given the state of HP's balance sheet, it's not in a good position for making acquisitions.

As for consulting, HP wrote down a big chunk of the value of the EDS acquisition two quarters ago amid long-standing complaints that it has failed to keep its consultants' skills up to date or to retain good people.

(Actually, the numbers in the EDS debacle are eerily reminiscent of the Autonomy story minus the accusations of accounting shenanigans.)

HP's big cash cow, of course, is printer supplies -- and in that regard it might suddenly find itself the new Kodak...

All this cloud crap is based on storage. Re:EDS: I worked in a business that used them. 6 different applications on 6 different platforms. Good revenue for EDS. And yes, HP/Compaq spends little money on training.


The EDS contracts are mostly not profitable.
 
2013-01-06 03:11:52 PM
HempHead:

The EDS contracts are mostly not profitable.

Now that would require a level of mismanagement that reaches DEC proportions.
 
2013-01-06 03:29:18 PM
Meg Whitman = Fail
 
2013-01-06 03:32:45 PM

czetie: Traditional storage vendors like HP are under pressure from a wave of new technologies and architectures. HP probably needs to acquire an innovative storage startup to refresh its business -- and given the state of HP's balance sheet, it's not in a good position for making acquisitions.


And given their Board's track record, if they did have the money, they'd buy pets.com
 
2013-01-06 03:33:51 PM

simplicimus: HempHead:

The EDS contracts are mostly not profitable.

Now that would require a level of mismanagement that reaches DEC proportions.


Yeah, then they followed it up with Automomy. Not sure even DEC went on such a stupid buying spree.
 
2013-01-06 03:36:58 PM

BumpInTheNight: What you have to wonder though is what on earth managed to dislodge the memory enough to require a reseating of it while you were in the bathroom. I've met many a situation where memory gets dislodged in transport, initially mis-installed or as a result of percussive maintenance but never while a system is just there running.


Thermal cycling.  Every time the heat goes up and down, things wiggle just an infinitesimal amount looser.  Eventually they get just too loose, the impedance of the connection gets just a pico-ohm too high, and boom.
 
2013-01-06 03:40:51 PM

Sliding Carp: Thermal cycling. Every time the heat goes up and down, things wiggle just an infinitesimal amount looser. Eventually they get just too loose, the impedance of the connection gets just a pico-ohm too high, and boom.


That's what she said.
 
2013-01-06 05:16:46 PM
FTA: Hewlett-Packard executives, who in the past have trumpeted the benefits of keeping the tech giant's myriad businesses together,

Apparently the author has never heard of "Agilent" and may have been living under a brick in the 90's.
 
2013-01-07 12:21:45 AM
So, does that mean I'll have to rely on "fill-it-yourself" kits when my printer ink runs out?

I keed.  Printer ink is more valuable than gold according to H-P pricing.
 
2013-01-07 10:05:03 AM
maybe if HP didn't act like they were going to dump a product line at whim, people might feel secure in purchasing those products
 
2013-01-07 10:51:32 AM

czetie: simplicimus: I'm pretty sure servers, storage and consulting are still profitable. The rest, not so much.

For now.

Traditional storage vendors like HP are under pressure from a wave of new technologies and architectures. HP probably needs to acquire an innovative storage startup to refresh its business -- and given the state of HP's balance sheet, it's not in a good position for making acquisitions.

As for consulting, HP wrote down a big chunk of the value of the EDS acquisition two quarters ago amid long-standing complaints that it has failed to keep its consultants' skills up to date or to retain good people.

(Actually, the numbers in the EDS debacle are eerily reminiscent of the Autonomy story minus the accusations of accounting shenanigans.)

HP's big cash cow, of course, is printer supplies -- and in that regard it might suddenly find itself the new Kodak...


You don't seem to really have any idea what you're talking about.

Just because supplies have high margins doesn't mean they are a "cash cow" or even a focal point of the business.
 
2013-01-07 10:57:12 AM

Sergeant Grumbles: dionysusaur: Boot the farking bean counters

This works in every industry, including the bean industry.


Worked really well for Apple when they kicked out Jobs and put Woz in charge, right?
 
2013-01-07 12:05:46 PM

Bullseyed: czetie: simplicimus: I'm pretty sure servers, storage and consulting are still profitable. The rest, not so much.

For now.

Traditional storage vendors like HP are under pressure from a wave of new technologies and architectures. HP probably needs to acquire an innovative storage startup to refresh its business -- and given the state of HP's balance sheet, it's not in a good position for making acquisitions.

As for consulting, HP wrote down a big chunk of the value of the EDS acquisition two quarters ago amid long-standing complaints that it has failed to keep its consultants' skills up to date or to retain good people.

(Actually, the numbers in the EDS debacle are eerily reminiscent of the Autonomy story minus the accusations of accounting shenanigans.)

HP's big cash cow, of course, is printer supplies -- and in that regard it might suddenly find itself the new Kodak...

You don't seem to really have any idea what you're talking about.

Just because supplies have high margins doesn't mean they are a "cash cow" or even a focal point of the business.


It's so cute the way you put those words together, almost as if you know what they mean.

From Investopedia, "1. A cash cow requires little investment capital and perennially provides positive cash flows, which can be allocated to other divisions within the corporation." It's not the margins that make something a "cash cow" (although it helps), it's the ability to return consistent streams of profit after an initial capital investment. I'd point you at a bunch of research from financial firms supporting the "cash cow" description of the ink business, but it's pretty obvious that would be a waste of time.

Now, find the part where I suggested that printer supplies are a "focal point" (whatever you imagine that to mean). Oh, right, you can't, because I didn't. Nor can you address any of the other points I made.

Here's a little tip, sonny: If you're going to try to patronize somebody, it's important to be right.

/Also, Meg Whitman is still not going to sleep with you.
 
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