Linked by Howard Fosdick on Fri 23rd Nov 2012 14:03 UTC
In the News Hard to believe, but articles are popping up at business websites claiming that venerable Hewlett-Packard may fail. In their most recent fiasco, HP wrote off a loss of $8.8 of their $11.1 US billion acquisition of Autonomy and have alleged fraud in the deal. Revenue is down 7% from a year ago and the stock has hit a 10-year low. The company is laying off 27K employees but that may not be enough. Some speculate HP might be broken up into parts with buy-outs involved. This article from last May offers a good in-depth analysis of how all these problems came to pass.
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its not the products...
by TomF on Fri 23rd Nov 2012 20:22 UTC
TomF
Member since:
2010-01-22

Guys,

Take a step back, I don't like HP, but you are all looking at a minor issue really. HP is not about the products you see in the shops, or even in the big business like their server. The majority of HP is about IT services. They deliver managing, consulting, one-stop services (even for IBM, Oracle and many more products) to their customers. And yes, I deal with these people on a regular basis. Most of them don't know what they are doing and can't read manuals for the 3th party products they are supposed to manage. Companies are learning that putting all their eggs in one basket (HP, Oracle, ...) is not such a good idea.

Tom UK

Reply Score: 4

RE: its not the products...
by johndoe445566 on Fri 23rd Nov 2012 20:52 in reply to "its not the products..."
johndoe445566 Member since:
2012-11-23

HP is not about the products you see in the shops, or even in the big business like their server. The majority of HP is about IT services.

Incorrect. Services is nowhere near a majority of HP's business, either in gross revenue or net profit.

In FY2012, services accounted for 28% of revenue and 32% of profit. PC's were 29%/13%, printers were 20%/28%, servers were 17%/17%, software was 3%/6%, and finance was 3%/3%.

Source:

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTYyNzc0...

Reply Parent Score: 3

RE: its not the products...
by Delgarde on Sun 25th Nov 2012 22:59 in reply to "its not the products..."
Delgarde Member since:
2008-08-19

That was my thought, too. Commenters here are almost all thinking of HP as a company selling printers and crappy laptops - not as a company that does a lot of consulting work, and sells a lot of big-iron hardware. And it's those areas where they're getting a thorough ass-kicking lately, where they're competing rather unsuccessfully with Oracle and IBM.

Partly that's because they're reliant on Oracle supporting them as a platform, which isn't really a good position to be in - Oracle obviously have no great incentive to make HP look good. But in large part it's simply that their offerings are crap compared to their competitors - there's really not much reason to buy a big HP server, instead of a comparable IBM or Oracle/Sun machine...

Reply Parent Score: 3