“New York Times,” author James b · Stewart (JAMES B. STEWART), wrote today, the article entitled “If you want a seamless transition in the upper, not to consult HP”: for a large technology companies, CEO in the end how important With the world’s largest computer company, Hewlett-Packard neighbors compared to Apple employees, shareholders, directors and successors Cook Jobs must want to find different answers.
Just a year ago, former HP CEO Mark – Hurd on suspicion of sexual harassment, forced to leave the reimbursement is not standardized, the details of which remain a mystery. (The Board considers that there is no evidence of sexual harassment, but Hart is not honest, lost the trust of the board of directors.) Requirements Hart left, voting is not consistent, the HP board there are serious differences, especially after how he left in charge of enterprises, on how to find a new CEO greater differences. HP’s so great, dominant in many markets, so a good profit, Hurd seems dispensable. According to relevant sources of HP’s board, a board member directly told Hurd: “We do not need you.” Or similar words with this.
Under the new leadership, HP actually fear what
Apotheker with HP for “corporate suicide”
On Thursday, HP announced that it is for the personal computer business looking for strategic options, may sell its PC business, HP’s revenue, PC business accounted for one-third. HP also gave up the TouchPad Tablet PC; and announced the acquisition of the UK’s second largest software provider Autonomy, cost of $ 10.3 billion.
HP’s former director of capital veteran Perkins (Tom Perkins) said: “I really did not know the original ‘corporate suicide (corporate suicide)’ such a thing, now I know it does exist. Wanted to be amazing.”
One executive said: “The terms of geography, culture or history, Hewlett-Packard is Silicon Valley. Have a system down so much, so fast I can not think.”
Hart and Apotheker
Hurd did not say another Steve Jobs, Hart is now the president of Oracle. He ruthlessly cut costs, suppress innovation, will dress up as a good CEO, this criticism. However, in the six years he led the Hewlett-Packard, but the undisputed performance: revenue growth of 57% (up to $ 120.4 billion), earnings per share growth of 242%, 130% HP’s stock rose more than $ 45, free cash flow increased 138%, operating margin doubled. April 2010, “Forbes” Hart published the cover article: “He wanted to have it all.”
HP’s board hired Apotheker, the former German software maker SAP CEO, succeeding Hurd as HP CEO. SAP CEO Lee Yi Kegang was served only seven months, and involved with the case of software piracy, it lost $ 1.3 billion for SAP (Apotheker said he was not directly involved), SAP also refused to sign a new contract with him. Moreover, as a software company CEO, he had little experience in hardware, in particular, the core business of HP printers, servers, know very little.
The source said, on January 20 this year, HP announced that four of the directors left, two of them to support Hart, Hart off against. Apotheker is composed of a committee proposed by the five new directors to replace those who leave, would provoke Institutional Shareholder Services (Institutional Shareholder Services, referred to as ISS) criticism. HP ISS that the company violated provisions of the CEO in selecting board members, he should have an independent out of. HP chairman Rann (Ray Lane) that does not break the rules, and that the new elected board members “is not a partner Apotheker … … but because I understand the industry and Apotheker are hard to pick people who we do not know.”
Apotheker strategic subversion strategy Hurd
It took some time to understand the HP operation, Apotheker opened a three-day conference: “HP 2011 high-level meeting”, which on March 14 in San Francisco. Apotheker emphasized that cloud computing and software, including webOS, in the reign of Hurd, HP’s acquisition of Palm and received webOS. Apotheker said that the future will enter the HP webOS each computer, and said HP would ship 100 million devices, equipped with webOS. The strange thing is Apotheker rarely talked about HP’s printer and server division, which contributed half of the two departments to HP profits.
In the reign of Hurd, HP has R & D Tablet PC, against Apple iPad, there are at least two prototypes in the development of a system to use Android, a system using the Windows Phone. HP did not want to sacrifice the relationship with Microsoft, the operating system to compete, but the reason it needs Android product, mainly because a large number of applications to support Android. HP Slate Tablet major enterprise customers face, and Windows Tablet for the consumer market.
Into the hands Apotheker, HP began to introduce new consumer tablet-TouchPad, it uses HP’s own webOS system. However, the lack of webOS program. As a software executive said: “The past three decades, the software economy has been to follow a rule: platform to be successful, a large number of high-quality program. Apotheker is not a consumer, he said: ‘We want to push a converged devices, and work against Steve Jobs’ in my opinion, this little joke. “In June last year’s All Things D conference, Apotheker acknowledge TouchPad not perfect.
February, HP’s results fell short of expectations, May time and lower expectations. Last week, it announced a new higher-than-expected quarterly results just a penny, but the next quarter: lower expectations again.
July 1, HP has just launched TouchPad, only 48 days, Apotheker announced to give up, because of poor sales, and also will not support webOS hardware. Thus, in March of speech does not attack from Apotheker cut.
HP’s PC business is the cornerstone of it
Even more shocking is the HP PC to look for the option. When he announced the spin-off or sell its PC business to consider, they did not say any buyer, plans to acquire companies, which will be placed in the personal computer business of anxiety among employees, HP derailment causes confusion for investors.
Hewlett-Packard spokesman said the HP simply want to clarify things, emphasizing things, the last HP’s PC business may still be retained.
If HP’s PC division to give up, you may lose many synergies, including cost benefits, this strategy may be destroyed by invisible for years. In the Hurd era, PC sector has been the same. However, an HP executive said: “We briefly considered stripping PC.”
Indeed, PC profit margins low, is now only 5.8% level, while the rest 11% corporate. However, considering the Hewlett-Packard’s sales and marketing channels, HP’s PC division can be seen as the cornerstone of other businesses, including servers, software, services to enable HP to cutting through the $ 150 billion infrastructure market, becoming the largest PC makers.
HP’s acquisition of Autonomy: Ford wants to build a plane as
HP also announced the acquisition of UK software provider Autonomy, HP said the move will fundamentally change the company.
A software industry executive, said: “Autonomy has been looking around for buyers.” Reign Hurd, Hewlett-Packard also received an invitation, but he said: “The price is 11 times revenue, no one will do.”
Bernstein Research analyst Isaac Nagy (M. Sacconaghi Jr) said: “The price is too high, this is a bad capital allocation decisions. In my view, it is totally inconsistent with the value.”
For many people, the acquisition means Apotheker and HP will focus primarily on software, both positive and Oracle, SAP and competition, while ignoring the company’s tradition of strong business.
Another software industry executive, said: “This is good 比艾伦穆拉利 left Boeing to join Ford, six months later, Ford said, wants to build a plane.”
Hewlett-Packard spokesman, said some words injustice, she said: “We emphasized in March, to focus on high growth, high margin business, such as enterprise servers and software.”
Ellison unfortunately: Hewlett-Packard board of directors made a big mistake
This week, HP’s stock price down to around $ 25, some analysts say things may turn for the better.
Bernstein analyst Sack Najib said: “It is still undervalued. HP does not go bad to the bone, just a series of business is facing fierce competition, slow growth fills in the S & P 500 index, the HP is the cheapest technology stocks. As long as the conditions are ripe, things will get better: such as performance improvement, leadership change or spin-off success. ”
A year ago, Hart left after Oracle CEO Larry Ellison to “Time” email said: “Since the Apple board of directors of the fool fired Steve Jobs, the HP board of directors made the worst human decision if it is not Joe Adams came back, save, and that decision will ruin Apple. ”
At that time, many people believe that Ellison’s remarks exaggerated the event, now look, but it is not so.
Cook, Apple may have many ideal successor. If Apple’s board and investors that Jobs is easy to replace, they should go visit your neighbors HP.