HP hints at divergent future for PSG - PC Retail

HP hints at divergent future for PSG

But says that the decision to spin-off is yet to be finalised
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<!-- /* Font Definitions */ @font-face {font-family:Cambria; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-ascii-font-family:Cambria; mso-fareast-font-family:Cambria; mso-hansi-font-family:Cambria; mso-bidi-font-family:"Times New Roman";} @page Section1 {size:612.0pt 792.0pt; margin:72.0pt 90.0pt 72.0pt 90.0pt; mso-header-margin:36.0pt; mso-footer-margin:36.0pt; mso-paper-source:0;} div.Section1 {page:Section1;} -->Hewlett Packard has hinted at the possibility of spinning off its Personal Systems Group, but stressed that the decision is still under consideration.

Speaking at the Canalys Channel Forum as a replacement for the recently deposed CEO Leo Apotheker, HP board member Ann Livermore stated that the company is considering the spin off of PSG as it might be better as a stand-alone business. The difference between the HP spin-off and similar moves by other companies, she said, is that others did it due to financial losses whereas PSG still comprises about 30 per cent of HP’s total revenue.

“Whatever decision we make will be based on analytics but also based on whether we’ll have the best business going forward,” Livermore told delegates. “This is something we take very seriously and the only reason we announced it ahead of the final decision was because it was too big a decision and with too many people involved to be able to keep confidential.”

She also hinted at a possible divergent future for the two entities, with PSG continuing to create PC hardware and the HP shifting its focus further towards software and cloud services, with a particular emphasis on enterprise security, business analytics, data administration as well as industry specific software models.

Data analytics and administration seem to be a key concern among the larger vendors, with both AMD and IBM also mentioning them as areas of future development, and HP’s acquisition of Autonomy appears to be a continuation of this trend.

“If look at future development, it’s going to be about how you make the most of the information that you have access to,” said Livermore. “We believe that the competitive advantage of most businesses will be about how they use their data, and it’s the same with Government too. This a very, very broad play, but there’s no question, this asset (Autonomy) is so important that there’ll be a direct link to HP’s core programme.”

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