Hewlett-Packard chief executive Meg Whitman might as well have been wearing a Boogeyman costume when addressing a crowd in London during an HP customer event. While there, she warned listeners that a mega-sized cyber terrorist attack is pretty much a foregone conclusion, that it's mostly a matter of when, not if, it will happen. But fear not, HP will be there to save the day, if you call upon the company.
Hewlett-Packard today announced that it's shaking things up in a big way. As part of what the company calls an "organizational realignment," HP has decided to combine its Imaging and Printing Group (IPG) and its Personal Systems Group, or printer and PC businesses, into a single entity. At the same time, executive vice president of IPG, Vyomesh Joshi, is calling it quits after serving 31 years with the company.
If Hewlett-Packard were a living, breathing entity, it might have a future in politics where it's perfectly acceptable (or least expected) to flip-flop on key issues. You know, things like whether or not to forge ahead with its PC business, the $1.2 billion acquisition of Palm only to later flip webOS to the open source crowd, and the whole TouchPad fiasco. And did we mention HP is once again interested in building webOS tablets?
After leaving the markets hanging for a few weeks, HP has finally clarified its future plans in the PC business: it’s in. HP will not undertake the course of action began by former CEO Leo Apotheker to spin off the PC business. This marks the first major change led by new CEO Meg Whitman. Don’t get too excited; webOS is still dead (we checked).
Market research firms International Data Corp (IDC) and Gartner both report that HP still sits on top of the world as the largest PC maker, shipping more units than other computer maker in the third quarter. Given that HP is maintaining a sizable lead despite all the turmoil surrounding the company's past, present, and future, why on earth would HP go forward with plans to sever its PC business? That's a question HP itself is having trouble answering, and it now looks as though newly appointed CEO Meg Whitman wants to back off plans to spin off or sell HP's Personal Systems Group (PSG).
One of the biggest decisions HP's newly appointed CEO Meg Whitman will make is what to do with the company's Personal Systems Group (PSG). Should HP sell or spin-off its PC business, or reverse course set by former CEO Leo Apotheker and concentrate on maintaining its position as the largest PC company in the world? We'll soon find out.
Hewlett Packard late yesterday thanked former CEO Leo Apotheker for his services while scooting him out the door and simultaneously welcomed Meg Whitman to the fold, who was appointed to his old position and will try to steady HP's ship as it bobbles over waves of uncertainty. Some of those waves are self-inflicted, like the decision to abandon webOS hardware, so does that mean Whitman will reverse the course set in motion by Apotheker? Don't bet on it.
Leo Apotheker's relatively short stint as CEO of Hewlett Packard has come to end. Taking his place is Meg Whitman, the former eBay boss, who will now serve as HP's President and CEO, the company's board of directors announced. Ms. Whitman faces the monumental challenge of restoring investor faith in HP, though her appointment alone may prove a step in the right direction.