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.
Hewlett Packard went bonkers there for a short while and actually considered selling or spinning off its Personal Systems Group (PSG) so it could focus on servers, printers, and software. Fortunately for HP, newly appointed CEO Meg Whitman quickly reversed course on what could have been a disastrous heading for the world's No. 1 PC maker, So now what?
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.