HP did WHAT?!

Notes on Hewlett Packard's decision to drop the PC business and cancel the TouchPad. (Pt. 4 in the cloud series)

Stills are from HP commercials featuring Serena Williams
http://youtu.be/p3g_37Kb3cY
Shaun White
http://youtu.be/-K8GYl5-xrM
and from KickthePJ's entry into a Hewlett Packard competition
http://youtu.be/JD2DXpUmD7A

You can search out other spots and entries on YT. There are dozens.

"The Computer is Personal Again" is a photograph by Duncan licensed under (cc). http://www.flickr.com/photos/duncan/3218971060/
HP. Giant corporation. They're the world's largest manufacturer of PCs and they suddenly said they want out of the business. Spin off or sell? They didn't know. Or they weren't saying. It came as a surprise to customers... to retailers... and to employees. Way to handle an announcement, HP.

Disclaimer: I've done some contracting with HP's Personal Systems Group through Michael Witlin Associates. I worked with some current HP employees at other companies. I'm a little upset they were treated so rudely.

Look. Strategically, this is probably a good idea for HP. Margins on PCs are razor thin. Other parts of the company are much more profitable.

But HP built up a huge brand. Remember: "The Computer is Personal Again" The snowboard guy. The tennis lady. The dress designer. Dr. Dre. The YouTube contest.
And behind marketing: An efficient supply chain. A responsive channel. Strong design. Variations for every market. And then they just dumped a tankerload of doubt and uncertainty on the whole business. Oil spill. Everyone's rattled.

And then the TouchPad. OK, rocky start. Non-competitive hardware. Heavier, thicker, and slower than the iPad. Slammed in reviews. Sluggish sales. Very few apps. Maybe it deserved a swift sudden death. But seven weeks after launch? Going out in a blaze of glory Prices slashed to $99 dollars. Instant sellout. King for a weekend. The Super Nova of tablets.

And more mud on the brand. HPs online store melted down under the pressure. I'll come back to that.

Left languishing onshore like a beached whale is the platform. WebOS.

When HP launched WebOS, they treated it like the key to the company's entire future. They'd use it everywhere—on all PCs, Printers, phones, pads. They'd finally be in a position to compete with Apple by designing the whole widget from software through to hardware. (There was a lot of Apple envy in that company).

Now, not so much: They say they're going to keep developing it and finding the best way to extract value from it. Like what? Sell it for patents? The whole world of development is distorted by the patent wars. Or maybe license it to some other tablet maker? Stay tuned.

So if they're getting out of PCs, tablets, and phones, what's HP doing instead?

Well, yes, they're keeping printers. But the big news is that they're focusing on the most profitable side of their business: serving enterprise customers. And they are—they hope—strengthening their ability to do that by acquiring the biggest software company in the UK: Autonomy.

Never heard of it, eh? Disclaimer: I know someone who used to work at Autonomy. Autonomy specializes in analyzing and extracting meaning from unstructured data—rambling piles of text—like, oh, y'know emails.

This strategy—dumping the PC business and focusing on enterprise customers—worked brilliantly for IBM. They sold their personal computer division to Lenovo. And both IBM and Lenovo have thrived.

Unfortunate that HP announced their intention to dump the Personal Systems Group without being able to announce an actual plan to spin it out or an actual buyer.

The timing is atrocious. If the past is any guide, the folks at HP's PSG (Personal Systems Group) are extra busy right now getting ready to launch their latest models of desktops and notebooks. That announcement will be entirely overshadowed by questions about the where the division will end up.

The new HP will focus on cloud services—to enterprise customers. You know what's a cloud service? An online store, for example. When HP announce fire sale pricing on the TouchPad, the flood of buyers was so big that their online store melted down.

There's a little irony about that. Until next time. I'm mickeleh.

Category:

Science & Technology

Tags:

• HP
• Hewlett Packard
• Apotheker
• Leo Apotheker
• Hurd
• Mark Hurd
• computer
• laptop
• tablet
• phone
• smart phone
• smartphone
• WebOS
• Autonomy
• Cloud
• Cloud Services
• mobile
• cell
• TouchPad
• printer
• printers
• iPad
• touch
• multi-touch
• Palm

[Amberspaz55]

You're so good at explaining this stuff XD a lot easier than trying to find it myself =P this is why I use what the buck for celeb news, philly D for news about dumb asses being dumb asses, Wheezy waiter for explosion news, and you on tech stuff =P

[mickeleh]

@Amberspaz55 OMG OMG OMG I think this is my favorite comment. Ever. *dies*

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[AbhisshekTube]

@MrAndroidGeek hahahahahahahaaahahahha

[scrahan81]

leo apotheker = ceo fail

[Lightfromsirius]

HP understand Steve´s iCloud and lost no time to change the way.

[MissSoyJoY]

They're doing a Spinoff. not dropping the PC business.

[AlbaG50]

I was expecting the HP sauce. Maybe it knocked the tomato sauce off the shelf

[juliuschas]

Tech companies are like sports teams: they can't wait to unload their star players.  I think I'll need a six-pack of Mickelob's to think this one through. And why didn't all my online tech stores tell me about the Touchpad virtual giveaway?

[Amberspaz55]

@mickeleh Don't die! =O If you die, how will I get my tech news!?! I'm far too lazy to google this stuff myself. Also, that'd be pretty sad ='(

[mackenzii709]

I actually managed to get one of those touchpads a couple days ago at a futureshop.