Divide and Conquer: the biggest event in the history of Hewlett-Packard since 2002
Hewlett-Packard ( HP ) in the past was the largest manufacturer of PCs and servers in the world. That legendary company that existed until now is no more. The process of dividing HP into two independent businesses is complete.
New HP Inc. received all the assets for the development and production of personal computing systems and printers. Hewlett Packard Enterprise got the entire HP corporate business. For HP, these changes have become the biggest since the takeover since it bought Compaq with 63,700 employees in 2002 for $ 25 billion.
HP Inc. Already announced the listing of Fortune 100 public companies. The head of the company was President and CEO Dion Weisler, who held the post of vice president of Printing and Personal Systems in the former company.
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Hewlett Packard Enterprise will focus on the development and production of enterprise IT systems. The company in the status of CEO will be headed by Meg Whitman (Meg Whitman), the former CEO of Hewlett-Packard. Its shares began trading on the New York Stock Exchange (NYSE) on Monday, November 2.
The existing Hewlett-Packard logo was inherited by HP Inc. In addition to laser and inkjet printers for business and home, laptops, desktop and tablet PCs, workstations, she also plans to develop the legacy patent portfolio in the field of 3D printing and other promising technologies.
Hewlett Packard Enterprise received a new logo. Her plans include the further development of successful server directions for Apollo, Gen 9 and Moonshot, 3Par storage systems, HP OneView management platforms, HP Helion cloud solutions, security and data analysis services, and other corporate services and applications, reports CNews.
Separation is a necessary measure. Discussions about him have been going on since 2011. Corporate earnings have declined significantly over the past few years. It is significantly inferior to large companies in the field of cloud technology and the production of smartphones and tablets. At the end of the 2013-2014 fiscal year ended October 31, 2014, the company's revenue decreased by 1%, and its profit - by 2%. The company's revenue decline in the 2013-2014 fiscal year occurred in all segments, except for the Personal Systems division (PCs, tablets and smartphones), which grew by 6.5% to $ 34.3 billion.
HP employed about 300,000 employees in 170 countries and 600 cities. Such scales are now a disadvantage rather than an advantage. The separation process was delayed. It lasted from last fall. HP revenue in the last quarter fell by 8% yoy. Since the company announced a split last year, its shares have fallen by about 27%.
According to a previously published forecast, Hewlett Packard Enterprise’s annual revenue should exceed $ 50 billion. Reduction of staff and measures to restructure the business will provide the company with annual savings of up to $ 2 billion, which in the long term will allow to achieve long-term operating profitability of 7-9%.
HP Inc CEO (the rest of HP) Dion Wesler faces challenges — how to stay afloat in an industry that quickly leaves old HP behind. For HP Inc, the division means that profits from highly profitable printer sales will no longer be spent on the corporate IT business that HPE will do. Weisler plans to send the released funds to increase the percentage of revenue that HP spends on research (the combined company spent only 3.1%). In addition, most of its profits HP Inc. will return to shareholders in the form of dividends, write "Vedomosti" with reference to The Wall Street Journal.
The new HPE will have 252,000 employees, while HP Inc. will only have 50,000. However, in terms of HP Inc. revenues. there will be more. She received $ 57.3 billion in revenue over the past year, while HPE received $ 53 billion.
New HP Inc. received all the assets for the development and production of personal computing systems and printers. Hewlett Packard Enterprise got the entire HP corporate business. For HP, these changes have become the biggest since the takeover since it bought Compaq with 63,700 employees in 2002 for $ 25 billion.
HP Inc. Already announced the listing of Fortune 100 public companies. The head of the company was President and CEO Dion Weisler, who held the post of vice president of Printing and Personal Systems in the former company.
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Hewlett Packard Enterprise will focus on the development and production of enterprise IT systems. The company in the status of CEO will be headed by Meg Whitman (Meg Whitman), the former CEO of Hewlett-Packard. Its shares began trading on the New York Stock Exchange (NYSE) on Monday, November 2.
The existing Hewlett-Packard logo was inherited by HP Inc. In addition to laser and inkjet printers for business and home, laptops, desktop and tablet PCs, workstations, she also plans to develop the legacy patent portfolio in the field of 3D printing and other promising technologies.
Hewlett Packard Enterprise received a new logo. Her plans include the further development of successful server directions for Apollo, Gen 9 and Moonshot, 3Par storage systems, HP OneView management platforms, HP Helion cloud solutions, security and data analysis services, and other corporate services and applications, reports CNews.
Separation is a necessary measure. Discussions about him have been going on since 2011. Corporate earnings have declined significantly over the past few years. It is significantly inferior to large companies in the field of cloud technology and the production of smartphones and tablets. At the end of the 2013-2014 fiscal year ended October 31, 2014, the company's revenue decreased by 1%, and its profit - by 2%. The company's revenue decline in the 2013-2014 fiscal year occurred in all segments, except for the Personal Systems division (PCs, tablets and smartphones), which grew by 6.5% to $ 34.3 billion.
HP employed about 300,000 employees in 170 countries and 600 cities. Such scales are now a disadvantage rather than an advantage. The separation process was delayed. It lasted from last fall. HP revenue in the last quarter fell by 8% yoy. Since the company announced a split last year, its shares have fallen by about 27%.
According to a previously published forecast, Hewlett Packard Enterprise’s annual revenue should exceed $ 50 billion. Reduction of staff and measures to restructure the business will provide the company with annual savings of up to $ 2 billion, which in the long term will allow to achieve long-term operating profitability of 7-9%.
HP Inc CEO (the rest of HP) Dion Wesler faces challenges — how to stay afloat in an industry that quickly leaves old HP behind. For HP Inc, the division means that profits from highly profitable printer sales will no longer be spent on the corporate IT business that HPE will do. Weisler plans to send the released funds to increase the percentage of revenue that HP spends on research (the combined company spent only 3.1%). In addition, most of its profits HP Inc. will return to shareholders in the form of dividends, write "Vedomosti" with reference to The Wall Street Journal.
The new HPE will have 252,000 employees, while HP Inc. will only have 50,000. However, in terms of HP Inc. revenues. there will be more. She received $ 57.3 billion in revenue over the past year, while HPE received $ 53 billion.
Source: https://habr.com/ru/post/295990/
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