New HP CEO Leo Apotheker has said that the computer and printer maker will increase spending on R&D in order to create software to compliment the firm’s range of hardware products.
According to a Business Week report, under the management of former HP CEO, the firm’s spending on R&D fell from 4.1 per cent of sales to 2.4 per cent by the time he was forced to step down. Hurd also oversaw a relaunch of the HP logo minus the ‘invent’.
In September IBM CEO Samuel Palmisano criticised HP for the firm’s lack of R&D spending, telling the Wall Street Journal that “H-P used to be a very inventive company,” but had no choice to pay over the odds for acquisitions such as data storage provider 3PAR because “Hurd cut out all the research and development.”
Apotheker told analysts on an earnings call that HP would continue the firm’s acquisition spree with a focus on software acquisitions. With his background as the former head of German software solution vendor SAP, the new CEO is looking to boost a weakened software development function of the tech giant and use innovations coming out of consumer products as a “secret sauce” to target the corporate sector.