Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Hardware
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
HP Focus on Enterprise Hardware Begins To Pay Off

HP Focus on Enterprise Hardware Begins To Pay Off
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"I do think we will now be considering acquisitions," said HP CEO and President Meg Whitman on HP's earnings call. "As this market changes very dramatically, you can see we may need acquisitions in security, big data, mobility and cloud." HP is likely to focus on enterprise-solution acquisitions, given the company's success in that area.
 


Meg Whitman is proving she's the man, er, the woman. Hewlett-Packard may not be where it needs to be, but the former eBay chief at least beat Wall Street's expectations with her push to focus on enterprise hardware.

Many analysts were predicting a significant drop in HP's quarterly revenue but that wasn't the case. HP netted $28.2 billion, down only 1 percent from the prior-year period and flat on a constant currency basis. HP also improved its operating company net cash position by $1.6 billion. That's the eighth consecutive quarterly improvement of more than $1 billion.

"HP is in a stronger position today than we've been in quite some time," said Whitman, HP president and CEO. "The progress we're making is reflected in growth across several parts of our portfolio, the growing strength of our balance sheet, and the strong support we're receiving from customers and channel partners. Innovation is igniting our comeback, and at a time when many of our competitors are confronting new challenges, two years of turnaround work is setting us up for an exciting future."

Considering Acquisitions

Whitman didn't stop there. After working through some of the failed acquisitions her predecessors left her to clean up, she's now ready to venture into the buying field once again.

"I do think we will now be considering acquisitions," Whitman said on HP's earnings call Thursday. "As this market changes very dramatically, you can see we may need acquisitions in security, big data, mobility and cloud."

HP is likely to focus on enterprise acquisitions, given the company's success in this area. Enterprise Group revenue was up 1 percent year-over-year with a 14.4 percent operating margin. Industry Standard Servers revenue was up 6 percent; Storage revenue was flat; and Networking revenue was up 4 percent. Even revenue from H-P's Personal Computer Group which had been predicted to decline, was instead up 4 percent, to $8.5 billion, on the strength of enterprise sales.

What to Buy?

We asked Rob Enderle, a principal analyst at The Enderle Group, for his take on what HP may acquire or divest. He told us Whitman has been around HP long enough to understand what's working and what's not and is now in a good spot to decide what she can get rid of that is no longer strategic and strengthen aspects of the company that need help.

"HP still needs to shore up software quite a bit for where they want to go, so I would expect them to make acquisitions on the software side to build that unit out," Enderle said. "There's been a long discussion at HP about getting rid of printers as non-strategic or even doing what IBM did and think about getting rid of PCs."

As Enderle sees it, the problem with getting rid of PCs is it stresses potential synergies on the server side of the business. Printers are another story.

"Printers hasn't worked out all that well," Enderle said. "It doesn't fit all that well with any other aspect of HP's business, so I would look at that as an area where they might want to divest."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Hardware
1.   Price Wars Hitting Laptop Market?
2.   Have Net Routers Reached The Limit?
3.   Obama Boosts Government Tech
4.   Surface Pro Ads Aim at MacBook Pro
5.   Acer Chromebook Packed with Power


advertisement
Acer Chromebook Packed with Power
13-inch screen on under-$300 devices.
Average Rating:
Can Surface Pro Tablet Replace a PC?
Microsoft says yes with 12-inch Pro 3.
Average Rating:
AMD Debuts 64-Bit ARM Server Chips
New Opterons target data center needs.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Chinese Hackers Nab Info on Millions of U.S. Patients
A group of Chinese hackers has stolen the personal information, including names and Social Security numbers, of about 4.5 million patients at hospitals operated by Community Health Systems.
 
Premier FBI Cybersquad in U.S. To Add Agents
After helping prosecutors charge Chinese army officials with stealing trade secrets from major companies and by snaring a Russian-led hacking ring, the premier FBI cyber-squad is getting a boost.
 
Apple Opens iCloud Data Center in China
Treading lightly, Apple acknowledged it has started to store encrypted iCloud personal data of some Chinese users on servers in mainland China, operated by the state-owned China Telecom.
 

Enterprise Hardware Spotlight
Compression, Deduplication Come to Violin Concerto 2200
Violin Memory has announced that data deduplication and compression capabilities are now available on its Concerto 2200 solution. Typically, users will experience deduplication rates between 6:1 and 10:1.
 
Cisco Axes 6,000 Employees in Restructuring Plan
Faced with declining profits, Cisco is laying off up to 6,000 employees in the months ahead -- a whopping 8 percent of its global workforce. That's in addition to the 4,000 jobs Cisco cut last year.
 
Web Slows, Have Internet Routers Reached The Limit?
If you encountered problems connecting to the Internet on August 12, you weren't alone. Networking experts blame the wide-scale slowdown on outdated routing systems that are reaching their limits.
 

Mobile Technology Spotlight
HTC Debuts Windows Phone Version of One M8 Smartphone
HTC is bringing the Windows Phone mobile OS to its flagship One M8 device -- the first time any mainstream flagship smartphone has been offered with a choice of operating systems.
 
Verizon Earns Top Rating in Mobile Network Comparison
A new report says Verizon Wireless was the top-performing U.S. cellphone service provider in the first half of 2014, on a nationwide and state-by-state basis, as well as in metro areas.
 
Sprint Comes Out with Data Guns Blazing
As its new CEO promised, Sprint has rolled out a new aggressively competitive price plan. The shared data plans promise twice the high-speed data and at lower prices than AT&T and Verizon Wireless.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.