Linked by Terry Shannon on Mon 7th Mar 2005 07:48 UTC
Editorial With HP's high-flying CEO Carly Fiorina departing, the company's woes are well known. But how did a firm with such a storied history and vast assets get headed down the wrong path, and what do they need to do to set their course straight?
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Good Articles, a few points
by mullet on Mon 7th Mar 2005 13:21 UTC

Firstly I disagree with the manner in which Carly Fiorina is described in royal terms. She wasnt the only person on the board, and not the only person failing to execute the strategy. Frankly if she hadnt been paid $45million (it is usually, Ovitz at Disney got paid $150mill) she would probably be crying scapegoat.

Secondly the Compaq deal WAS NOT the reason that hp strategy failed. They made more cost saving than expected and the only reason why their server division is only dribbling cash & not bleeding it (even occassionally profitable) is the compaq x86 server sales profits are covering up the mounds of red ink from Itanic - which ultimately has destroyed their big iron strategy.

Frankly it was risky from day 1 to think that customers werent going to jump ship when replacing a mature dec alpha chip on a mature tru 64 & a mature pa-risc on a mature hp-ux, with a new chip from intel combined with a port of hp-ux & linux. If I were forced to move architecture i wud probably think about switching vendor also, perhaps to SUN, probably to IBM. I am not alone in this way of thinking, look at server shipments.