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HP divesting PC business?

HP is considering spinning off or selling the PC business.  Whoa….what does this mean to our Avid, Autodesk, Assimilate and Adobe users who count on HP to deliver high performance HP workstations?

My first take is good luck changing your business model.  That being said, every company needs a strategy and HP is making a distinct move away from the consumer and lower margin business’.  That said, we’re talking about a  $42 Billion top line business with $2 billion in profits, equaling 4.76 % net profit business.   My first take is, HP is passing up on an amazing opportunity to provide vendors with an integrated business to consumer workflow, well, not everyone can do Apple.

I had an opportunity to speak to the HP workstation team and get some insight about what this means moving forward for our clients who use HP products.  The good news is the Workstation team is almost giddy.  They believe carving out the PC business will allow them greater flexibility to design more products and not get caught up in HP’s divisions of server versus software and truly compete with more relevant solutions to complete high value workflows within the media industry.  They’ll be a  “nimble” and profitable Company.

So, HP warranties are safe, all products will be serviced by HP.  This transition could take up to eighteen months.  My one worry is the lack of development during this time as HP shifts resources to “higher margin” opportunities such as their recent acquisition of Autonomy.  Stay tuned, we’ll keep you updated.

http://www.keycodemedia.com/Avid/avid-nitris-dx.html

http://www.keycodemedia.com/products/adobe/creative-suite-5.html

http://www.keycodemedia.com/Finishing/D.I/assimilate-and-kcm.html

http://www.keycodemedia.com/AutoDesk/smoke.html

  1. September 3, 2011 at 10:35 am

    Ben Worthen, in Friday’s WSJ (Sept 2, 2011), wrote the “H-P’s Customers Backing Off”. Ray Barnard, Chief Information Officer of Fluor, who spends $25M per year is holding off. His quote “It appears that they’re (HP) lost right now.” The issue with large clients is the feel of a lack of direction. The WSJ got a comment from a H-P Spokeswomen “We remain committed to all of our customers and will continue to provide the highet level of service and support as well as regualr communication regarding our strategic direction.”
    H-P was able to provide Dreamworks SKG as a company standing solidly behind H-P.

    My question is where is the leadership in the workstation business? HP divesting, Apple has rumors of a slot-less Mac and a Chinese Bank trying to buy the Dodgers for $1.2 billion (ok the last part is a whole other concern).

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