Meg Whitman: The lady IS for TURNING. HP to lob printers'n'PCs OVERBOARD

'Better together' ... Until now


HP has confirmed the industry’s worst kept secret – since yesterday anyway – that it is to carve the business in two, with printers and PCs on one side and all things enterprise on the other.

This is a massive U-turn by CEO Meg Whitman, who has claimed repeatedly the organisation would not be split – as had been imagined by her predecessor Leo Apotheker – ever since she took over the top job.

Whitman will be CEO and president of HP Enterprise, housing the server, storage, networking, converged systems, services and software units. PC and Printer boss Dion Weisler is to be made CEO of HP Inc, and Whitman will be non-exec chairman at the business.

Both businesses will trade on NYSE when the transaction closes by the end of HP’s fiscal 2015 (November next year), and HP shareholders will own shares in the two entities, the company said.

The separation transaction is intended to be tax-free to HP shareholders for federal income.

In a canned statement, Whitman claimed:

Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by rapidly changing market.

She added the split would provide the companies with the “independence, focus, financial resources, and flexibility they need to adapt to market and customer dynamics, while generating long-term value for shareholders”.

The company also said the divorce will provide “additional resources, and a reduction of debt at the operating company level”, which could be used to underpin investment across the portfolio.

Whitman admitted at the recent Canalys Channels Forum that HP has “missed” technology trends. She was most likely referring to the tablet and smartphone market, where the firm has lost ground to Apple and Samsung. In PCs, HP conceded the market lead to Lenovo last year.

In a statement, Weisler said an independent HP Inc can make a splash in emerging market such as 3d printing and in “new computing experiences”.

The guidance for fiscal ’14 is unchanged. ®

Similar topics


Other stories you might like

  • Microsoft unveils Android apps for Windows 11 (for US users only)

    Windows Insiders get their hands on the Windows Subsystem for Android

    Microsoft has further teased the arrival of the Windows Subsystem for Android by detailing how the platform will work via a newly published document for Windows Insiders.

    The document, spotted by inveterate Microsoft prodder "WalkingCat" makes for interesting reading for developers keen to make their applications work in the Windows Subsystem for Android (WSA).

    WSA itself comprises the Android OS based on the Android Open Source Project 1.1 and, like the Windows Subsystem for Linux, runs in a virtual machine.

    Continue reading
  • Software Freedom Conservancy sues TV maker Vizio for GPL infringement

    Companies using GPL software should meet their obligations, lawsuit says

    The Software Freedom Conservancy (SFC), a non-profit which supports and defends free software, has taken legal action against Californian TV manufacturer Vizio Inc, claiming "repeated failures to fulfill even the basic requirements of the General Public License (GPL)."

    Member projects of the SFC include the Debian Copyright Aggregation Project, BusyBox, Git, GPL Compliance Project for Linux Developers, Homebrew, Mercurial, OpenWrt, phpMyAdmin, QEMU, Samba, Selenium, Wine, and many more.

    The GPL Compliance Project is described as "comprised of copyright holders in the kernel, Linux, who have contributed to Linux under its license, the GPLv2. These copyright holders have formally asked Conservancy to engage in compliance efforts for their copyrights in the Linux kernel."

    Continue reading
  • DRAM, it stacks up: SK hynix rolls out 819GB/s HBM3 tech

    Kit using the chips to appear next year at the earliest

    Korean DRAM fabber SK hynix has developed an HBM3 DRAM chip operating at 819GB/sec.

    HBM3 (High Bandwidth Memory 3) is a third generation of the HBM architecture which stacks DRAM chips one above another, connects them by vertical current-carrying holes called Through Silicon Vias (TSVs) to a base interposer board, via connecting micro-bumps, upon which is fastened a processor that accesses the data in the DRAM chip faster than it would through the traditional CPU socket interface.

    Seon-yong Cha, SK hynix's senior vice president for DRAM development, said: "Since its launch of the world's first HBM DRAM, SK hynix has succeeded in developing the industry's first HBM3 after leading the HBM2E market. We will continue our efforts to solidify our leadership in the premium memory market."

    Continue reading

Biting the hand that feeds IT © 1998–2021