HP Leaves PC market to focus in Services

Escrito el 21 agosto 2011 por Jesus Guerro en General

Hewlett Packard has shaken the technology sector and consequently the financial world by announcing his departure from the PC market. It might be confusing if we consider the news come from the current a Global Leader in the field as is the case. But HP’s decision is far from innocent, much less unexpected.
The hiring of Leo Apothenker as head of the Company, the same person who had taken SAP to a progressive and overwhelming leadership into Applications market, revealed the clear intention of the Board to give a radical strategic shift in the business model of the prestigious American Firm.
It probably did not escape their managers the announcement would cause confusion in the Financial Markets and consequently and immediate drop in the shares vale as indeed it happened. The valuation of HP fell after the announcement, 20% out of its capitalization, added to the 20% which had already lost in the last 6 months. This mean, the stock value of HP today is almost a half It was at the beginning of the year. So, with this decision, HP seems to implement the holder of that movie «9 ½ weeks» «if something is on fire let it burn» and that’s what HP has done, fire to be reborn from its ashes.
However ceratinly It is not, and following the parallelism, a total burnout or a “jump without a net”. With a clear goal to cover a larger Customer Share, the American company has formed in the last decade, a Division of IT Applications Consulting with more than 10,000 consultants worldwide, most of them, as you could imagine, professionals belonging to the SAP Universe.

The HP strategy that underpins today could recall that which IBM started 15 years ago, also former leader of the computer industry which became to a Services Company from the hall to the roof based on Technology Services and Information System Applications.

Nevertheless it is not a sudden trend. We have seen in recent years how large firms traditionally known as world’s leading manufacturers such as Siemens, FUJYTSU, or TATA worldwide, nowadays participate in Consulting  Tenders of IT Applications  to become first-order competitors facing Accenture, Deloitte, PWC or IBM itself.

HP also abandons the evolution of its operating system for mobile terminals webOS acquired a year ago after buying Palm, perhaps in view of the temerity to compete in this field with Google and Apple, preferring to invest in the acquisition of Software Services Company “Autonomy “  by 10,000 million dollars.
The trend of the transition from product center to service center is being accelerated day after day. The brands apply its best resources to provide a careful and complete service to the customer, keeping a continuous interaction to participate in definition of strategic plans achieving the best position. PCs or printers do not allow such scope. This work is subcontracted; the brand is not longer resting on the metal.


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