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...
Enterprise I.T.
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
HP CEO Says Intel, Microsoft Now Competitors
HP CEO Says Intel, Microsoft Now Competitors

By Jennifer LeClaire
October 10, 2013 12:48PM

    Bookmark and Share
The competition from Intel is that it is partnering very closely with EMC. Clearly Microsoft has stepped solidly into HP's space. CEO Meg Whitman is just being realistic and saying the environment is changing. The vertically integrated model seems to be on the upswing and HP has to adapt to the changes.
 



When your partners become your competitors, it changes the game. But is HP really blaming Microsoft and Intel for flat revenue?

At its 2013 Securities Analyst Meeting, the company’s leadership team provided an update on its progress executing against its turnaround plan and future strategy. HP president and CEO Meg Whitman described the past year as a “fix and rebuild” period, and insisted the multi-year turnaround is on track.

As evidence, the company has met or exceeded quarterly non-GAAP diluted earnings per share outlook since the turnaround plan began. HP said in August that it expects free cash flow to approach $8 billion by the end of fiscal year 2013.

What’s more, Whitman’s team has reduced operating company net debt by almost $8 billion over the past 12 months and recommitted to smarter innovation with research and development spending expected to exceed $3 billion in fiscal 2013.

“While there is a lot more work to be done, I am confident about the progress we are making,” said Whitman. “We’re producing tangible results, strengthening our balance sheet and delivering innovative products across all our key segments. We are implementing the changes needed to support our multi-year turnaround journey, reaffirm HP’s leadership position, and create enduring value for customers as well as for our shareholders.”

Blaming Microsoft

While the company faces a challenging macro environment, shifting market forces and a rapidly changing competitive landscape, Whitman emphasized that the company has the right leadership team in place to advance its strategy, drive innovation across the business and improve its go-to-market execution. Whitman reiterated that she expects HP’s revenues to grow in line with gross domestic product over the long term.

Nevertheless, with pockets of growth helping to offset continuing challenges in the macro environment and weak public sector spending, HP expects the year-over-year revenue decline in fiscal 2014 will moderate from fiscal 2013. Specifically, HP anticipates operating profit dollars to be flat to up, year-over-year in fiscal 2014, due to its continued focus on cost savings and operational efficiency.

But both Whitman and Dion Weisler, executive vice president of printing and personal systems at HP, said something else that is turning heads. Weisler noted that in the past, if you played by the Wintel playbook you could pretty much predict your results.

“You just needed to run a little faster than the other guy," he said. "Everything was pretty predictable . . . [but] we're in a new world now with multiple operating systems, new architectures, new silicon, new graphics, new subsystems."

And on the Wintel front, Whitman had a mouthful for Wintel makers Microsoft Windows and Intel. She said HP’s traditional highly-profitable markets face significant disruption.

“In personal systems,” she said. “Wintel-based devices are being aggressively displaced by ARM-based PCs and mobile devices running competing operating systems . . . current, long-term HP partners, like Intel and Microsoft, are increasingly becoming outright competitors.”

HP Must Adapt

So does Whitman’s statement have merit? We asked Rob Enderle, principal analyst at The Enderle Group, for his take. He told us Whitman is seeing the drift as Microsoft pushes out more of its own services and even hardware like the Surface tablet.

“I am not quite seeing the competition from Intel that she’s talking about, except that Intel is partnering very closely with EMC,” he said. “Clearly Microsoft has stepped solidly in their space. I think she’s just being realistic and saying the environment is changing. The vertically integrated model seems to be on the upswing and HP has to adapt to the changes.”
 

Tell Us What You Think
Comment:

Name:





 Enterprise I.T.
1.   BlackBerry Acquires Secusmart
2.   BlackBerry BES 10 Now Hosted
3.   Teaming Up: CIOs, IT Asset Managers
4.   Juniper DDoS for High-IQ Networks
5.   IBM Rolls Out Hybrid Cloud Services


advertisement
Backlash Stirs Against H-1B Visas
Debate over foreign workers continues.
Average Rating:
BlackBerry Acquires Secusmart
German security firm offers street cred.
Average Rating:
IBM Rolls Out Hybrid Cloud Services
Based on SoftLayer net infrastructure.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 

Mobile Technology Spotlight
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

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.