The CEO of IBM, Samuel J. Palmisano, has launched a broadside at HP, saying that it has failed to keep up with technological changes.
In an interview with the Wall Street Journal, Palmisano criticised HP for reducing its investment in research and development, saying that the vendor had simply become “a distribution channel for Intel and Microsoft.”
Although he also criticised his rival for its handling of the departure of its CEO Mark Hurd, he pointed out that much of the investment reductions in research had come during his tenure: “HP had no choice. Hurd cut out all the research and development.”
“I’ve never worried about a competitor that doesn’t invest in technology, because at the end of day, if you’re in technology you have to create the future,” continued Palmisano.
“You can’t just resell somebody else’s future creation. HP used to be a very inventive company, by the way, they really were and they were very good at it. But they got out of all technology investment, they resell everything now from Intel, most of their software is a resold product, with (the acquisition of computer services firm) EDS they bought an asset where you could define the value and then got rid of 40,000 people – we haven’t figured out a way to work in the services industry without people, but they claim to have figured out a way.”
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