Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Hardware
Gartner's #1 for endpoint backup
Average Rating:
Rate this article:  
HP Focus on Enterprise Hardware Begins To Pay Off

HP Focus on Enterprise Hardware Begins To Pay Off
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"I do think we will now be considering acquisitions," said HP CEO and President Meg Whitman on HP's earnings call. "As this market changes very dramatically, you can see we may need acquisitions in security, big data, mobility and cloud." HP is likely to focus on enterprise-solution acquisitions, given the company's success in that area.
 



Meg Whitman is proving she's the man, er, the woman. Hewlett-Packard may not be where it needs to be, but the former eBay chief at least beat Wall Street's expectations with her push to focus on enterprise hardware.

Many analysts were predicting a significant drop in HP's quarterly revenue but that wasn't the case. HP netted $28.2 billion, down only 1 percent from the prior-year period and flat on a constant currency basis. HP also improved its operating company net cash position by $1.6 billion. That's the eighth consecutive quarterly improvement of more than $1 billion.

"HP is in a stronger position today than we've been in quite some time," said Whitman, HP president and CEO. "The progress we're making is reflected in growth across several parts of our portfolio, the growing strength of our balance sheet, and the strong support we're receiving from customers and channel partners. Innovation is igniting our comeback, and at a time when many of our competitors are confronting new challenges, two years of turnaround work is setting us up for an exciting future."

Considering Acquisitions

Whitman didn't stop there. After working through some of the failed acquisitions her predecessors left her to clean up, she's now ready to venture into the buying field once again.

"I do think we will now be considering acquisitions," Whitman said on HP's earnings call Thursday. "As this market changes very dramatically, you can see we may need acquisitions in security, big data, mobility and cloud."

HP is likely to focus on enterprise acquisitions, given the company's success in this area. Enterprise Group revenue was up 1 percent year-over-year with a 14.4 percent operating margin. Industry Standard Servers revenue was up 6 percent; Storage revenue was flat; and Networking revenue was up 4 percent. Even revenue from H-P's Personal Computer Group which had been predicted to decline, was instead up 4 percent, to $8.5 billion, on the strength of enterprise sales.

What to Buy?

We asked Rob Enderle, a principal analyst at The Enderle Group, for his take on what HP may acquire or divest. He told us Whitman has been around HP long enough to understand what's working and what's not and is now in a good spot to decide what she can get rid of that is no longer strategic and strengthen aspects of the company that need help.

"HP still needs to shore up software quite a bit for where they want to go, so I would expect them to make acquisitions on the software side to build that unit out," Enderle said. "There's been a long discussion at HP about getting rid of printers as non-strategic or even doing what IBM did and think about getting rid of PCs."

As Enderle sees it, the problem with getting rid of PCs is it stresses potential synergies on the server side of the business. Printers are another story.

"Printers hasn't worked out all that well," Enderle said. "It doesn't fit all that well with any other aspect of HP's business, so I would look at that as an area where they might want to divest."
 

Tell Us What You Think
Comment:

Name:



Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.


 Hardware
1.   Acer Desktop Box Rides Chrome Wave
2.   Feds OK IBM-Lenovo x86 Server Deal
3.   New Lenovo PCs for Business Users
4.   Price Wars Hitting Laptop Market?
5.   Have Net Routers Reached The Limit?


advertisement
Feds OK IBM-Lenovo x86 Server Deal
Makes Lenovo a player for data centers.
Average Rating:
Acer Desktop Box Rides Chrome Wave
Chromebox targets schools, small biz.
Average Rating:
Acer Chromebook Packed with Power
13-inch screen on under-$300 devices.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Find Malicious Android Apps Can Hack Gmail
A new study shows that a weakness in the Android mobile operating system can be used to steal sensitive, personal info from unwitting users. Gmail proved to be the easiest app to attack; Amazon, the hardest.
 
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
 
Three New Lenovo PCs Aimed at Business Users
With businesses wanting computing solutions that do more for less money, Lenovo has unveiled three new desktop PCs that it says offer solid computing at a budget-minded price.
 

Mobile Technology Spotlight
Screen Shortage Briefly Puts Brakes on iPhone 6
RAM? Check. Antenna switch? Check. Screen? Oops. Parts suppliers for Apple have found themselves facing a shortage of screens for the new iPhone 6 as next month's release date for the new smartphone looms.
 
Bounty Offered to Coders for Oculus Rift Bugs
Coders who find bugs in software for the Oculus Rift VR immersive headset could receive a reward of at least $500 under Facebook's White Hat bounty program. Facebook acquired Oculus in March.
 
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.