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General Chat Thread, HP quitting the PC market in General; Bit of a surprise? BBC News - Hewlett Packard to exit computing and buy Autonomy Not a huge fan of ...
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    synaesthesia's Avatar
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    HP quitting the PC market

    Bit of a surprise?

    BBC News - Hewlett Packard to exit computing and buy Autonomy

    Not a huge fan of their hardware, but their warranty system was the dogs nads, I have always *hated* their hardware with a passion!

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    localzuk's Avatar
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    Wow, that's a huge change of focus!

    I'm a fan of their hardware. Their business stuff is always good quality, their printers are too. And their network gear is excellent. Their warranty support for business is top notch too.

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    Dos_Box's Avatar
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    Will that include laptops too? I note several articles mention slates, handhelds and other devices, but I can't find a mention of laptops, although I would assume they are lumping these under PC's. If they successfully sell of this arm of HP, will it be taken over by a company that will do it justice like IBM's handover to Lenovo I wonder, or will the new incumbant just milk the name and models for everthing they are worth? Who's going to be the first to try?

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    steve's Avatar
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    No mention yet on servers / storage / printers / network equipment.

    IBM kept its server manufacturing for a while after selling its PC manufacturing to Lenovo. Hopefully HP will keep it's enterprise / backend manufacturing for a long while.

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    plexer's Avatar
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    I can't actually say what I really want to say about this.

    We are 95% on desktops.

    Ben

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    FN-GM's Avatar
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    I like the HP hardware but i have yet to find a good experience with the tech support.

    So what are they actually stopping. I would be a shame to see the end to servers, desktops, laptops and printers.

  7. Thanks to FN-GM from:

    speckytecky (19th August 2011)

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    localzuk's Avatar
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    Its a strange move, considering they are the number 1 supplier at the moment for PCs, and made half a billion profit last quarter.

    Considering HP bought Compaq, and merged it in only a decade ago, this seems like a strange move to me.

    One of the great things about HP to many businesses is that it is a one stop shop for pretty much everything. They do complete end to end solutions, from mainframe grade equipment running their own unix systems, down to the PCs, phones, laptops etc... on the user end, connected together by HP switches.

    I'm guessing this will be much like IBM's Lenovo sell-off. Desktops and laptops only, as they are the least profitable area of the computer world. Servers are not within the personal computer group, nor are switches etc...

    I wonder what company would be interested in purchasing the business. Someone like Google maybe...

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    Dos_Box's Avatar
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    Quote Originally Posted by steve View Post
    No mention yet on servers / storage / printers / network equipment.

    IBM kept its server manufacturing for a while after selling its PC manufacturing to Lenovo. Hopefully HP will keep it's enterprise / backend manufacturing for a long while.
    TBH, the profit margins on desktops, laptops etc are minimal as opposed to servers and networking equipment where companies and organisations ae more than willing to open their wallets to get leading edge technologies and reliability on high performance kit. The same goes for printers, HP will more than likely keep these as high capacity/performace workgroup printers still make a profit from consumables as well as on the initial purchase.

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    dgsmith's Avatar
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    As above, does it encompas ALL hardware (desktops, printers, switches, laptops etc)? I can't find any clarity on that.

    Quite a massive shock. Whilst we only have a handful of HP desktops, we've been very happy with them and have a number of Procurve switches too - another line I think HP have done very well in.

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    Michael's Avatar
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    Its a strange move, considering they are the number 1 supplier at the moment for PCs, and made half a billion profit last quarter.
    I am pretty sure their turnover must of been absolutely enormous. To me I think this is a classic example of quit whilst you're ahead. It might be profitable at the moment, but for how long at this level? The computer industry is changing all the time.

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    chrbb's Avatar
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    Anyoe know what will happen to their warrenties?

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    Quote Originally Posted by synaesthesia View Post
    I have always *hated* their hardware with a passion!
    Their servers and EliteBooks were very good. HPs website on the other-hand is horrible and poorly designed (I won't miss that).

    Quote Originally Posted by dgsmith View Post
    As above, does it encompas ALL hardware (desktops, printers, switches, laptops etc)? I can't find any clarity on that.
    From Bloomberg...

    Hewlett-Packard Co. (HPQ), the world’s largest computer maker, agreed to buy Autonomy Corp. for $10.3 billion in cash to increase sales of cloud services for businesses while lessening its reliance on personal computers.

    Autonomy shareholders will receive $42.11 a share, Palo Alto, California-based Hewlett-Packard said in a statement. That represents a 64 percent premium over Autonomy’s closing share price yesterday. Hewlett-Packard also said it’s considering spinning off its PC division and that it will discontinue products that run WebOS software. Hewlett-Packard shares dropped after the company issued forecasts that missed estimates.

    Chief Executive Officer Leo Apotheker, who took the helm at Hewlett-Packard in November, is unraveling the expansion into PCs that accelerated with the 2002 Compaq Computer Corp. deal. He’s also broadening in so-called cloud services, which help business customers handle computing tasks over the Internet.
    “Their focus is on being more of a software and services company and not dependent on the hardware businesses,” said Michael Gartenberg, an analyst at Stamford, Connecticut-based Gartner Inc. “The hardware business has become a difficult business. In many ways it’s a commodity-driven business. This is a major strategic shift for HP.”
    By discontinuing WebOS products, Apotheker is backtracking on a strategy, announced just five months ago, to put WebOS software on every Hewlett-Packard computer. Former CEO Carly Fiorina acquired Compaq for $17.6 billion. (Source)
    It's a shame to see WebOS go, but HP never really stood a chance against iOS and Android.

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    GrumbleDook's Avatar
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    For me I can see the networking equipment hitting many schools who have been HP and/or 3COM for some time. I suppose it is a case of wait and see how it spins.

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    ZeroHour's Avatar
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    The thing is I never thought of HP as a software business anyway, whats their portfolio in that area?
    This tbh is bad for all, reducing competition is never good.

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    plexer's Avatar
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    Quote Originally Posted by GrumbleDook View Post
    For me I can see the networking equipment hitting many schools who have been HP and/or 3COM for some time. I suppose it is a case of wait and see how it spins.
    Nothing been said they are getting out of networking atm though?

    Ben

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