Hewlett Packard: Search Seems Quiet

May 23, 2014

I read a number of news stories by real journalists who reported on HP’s second quarter 2014 financial performance. In Recode story, the one item that caught my attention was the announcement that HP would fire another 16,000 people. I enjoy the euphemisms some management gurus use; for example, these 16,000 people will be able to “find their future elsewhere.” For the old school manager, RIF (reduction in force) is snappier.

The software revenues at HP were uninspiring to me. For a company that once saw enterprise software as the high margin puppy, the reality seems to be less sunny. With cloud computing headed down the commoditization trail and enterprise services trouble, I will be watching how HP stacks up against the always interesting IBM. Maybe next quarter Autonomy and Watson can do a round of mud wrestling?

Could Mike Lynch’s team done a better job? Interesting question for 16,000 job hunters to ponder.

Stephen E Arnold, May 23, 2014

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