It’s not you it’s me: Hewlett-Packard part ways
If Hollywood wanted a script about the classic inevitable decline of an empire, HP might serve as a source of inspiration. One of the most respected in Silicon Valley, HP finally split up into two new companies, hoping that the smaller parts would be more agile and perhaps reverse the four years of moribund sales.
Some say that the enterprise became victim to the invariable paradigm shifts in the computer industry and practically put pressure on Dell to opt privatization and nearly bashed IBM on its heel. Other analysts believe that it was the pressure from the investors that lead to the split. But that’s not all to the story. The climactic plot also includes scandals, revolving CEOs, and ill-fated mergers that made HP unable to compete with the pace, becoming a fatality.
But what lead to this drastic or maybe even a fruitful end of one of the most well-known partnerships in the corporate world? Here are a few reasons:
HP runs at different speeds
The computer hardware unit of HP is still a giant revenue machine but the sales have been on a constant decline. The software side wasn’t doing that well either, with HP unable to envision a strong long-term future for its software unit, neither could the investors with their considerable investments. The split will potentially facilitate the company’s management to make independent decisions equally favorable for both divisions.
It’s nothing new for tech companies
It’s not the first major company to part ways. It has been witnessed before with IBM in 2005 when it decided to sell off its unit PCs to Lenovo, a Chinese tech brand. It’s now an evolved business that deals with enterprise software combined with management consultancy, setting up a pattern that companies like HP and dell want to imitate. Investors aren’t surprised over the split but are actually musing as to why it took so long to happen.
HP is huge to handle
Meg Whitman will continue the charge of the software and corporate division while Dion Weisler will become the CEO of the printer and PC arm. This split will surely give both the bosses some meat to chew on as each of the companies individually is worth $50bn. The hope is that this split will provide more time to focus so as to return to the driving route and grow instead of holding back.
HP is slow
That is all the tech experts have to say. Customers often complained that HP was at least two years behind its rivals when it came to launching new products or services. It embraced cloud computing quite late and failed abysmally to enter the smartphone market. So the break-up down will actually give both the businesses some room to breathe and become more active along time.
It is too soon to tell whether the future progresses in favor of the company and its investors, or the company going in the pits forever; let’s wait and see how things turn out, speculation is all we have right now.