Computer and Library Learning (Archived)

Hewlett-Packard not only confirmed on August 18, 2011 that it was going to discontinue its webOS operations for smartphones and tablets but was also considering the sale or spinoff of its Personal Systems Group (PSG) that currently dominates the personal computer (PC) market. The PSG currently possesses the company’s lowest profit margin even though this part of the company produced about one-third of the company’s 2010 revenues. Divesting itself of manufacturing PCs would reverse a controversial decision that HP made in 2002 when it acquired Compaq for US$25 billion. Nonetheless, Hewlett-Packard announced on August 22, 2011 a new business-oriented all-in-one desktop computer called the Compaq 8200 Elite (coming with Intel Sandy Bridge chips on both the core and Pentium processors, and a 23-inch anti-glare LCD screen supporting high definition resolutions at 1920 x 1080). The company is offering a three-year warranty for labour and parts as well as onsite and phone support services. This mixed message is further complicated by rumours circulating in the media that Samsung is a potential purchaser of Hewlett-Packard’s PSG; consequently, this purchase would make Samsung one of the larger computer manufacturers on the planet.

Hewlett-Packard (HP) also announced its attention to further focus on software by purchasing analytics software vendor Autonomy for about US$10 billion. The intent of this move will give the company a strong footing in enterprise software; Autonomy will continue as a business unit within HP under its current CEO. UK-based Autonomy is the second-largest European software-focused company with a market capitalization of US$7 billion whose customers include large enterprises such as Exxon, Toyota, General Motors, Nestle, Federal Express, Sony, and the United State Department of Defense.

HP is now looking towards cloud computing services in a manner akin to Google and Microsoft. Customers and investors are well-acquainted with HP in the enterprise realm, especially with its printing technology but may not be comfortable with its change in focus from computer hardware to software as demonstrated by fluctuations in HP’s share prices.

The PC lives, at least for the time being…