UPDATED 15:39 EDT / OCTOBER 06 2011

HP Acquisitions Take a Back Seat as Whitman Takes the Helm

Hewlett-Packard had another busy week.  Earlier in the week they announced that they already finalized their Autonomy deal, though investors aren’t too sure about the buy, especially when Oracle CEO Larry Ellison poked fun at the deal stating that it was way overpriced.

This may be HP’s last big software deal as CEO Meg Whitman stated that, “It’s certainly the end of big acquisitions.”  Investors could probably take a breather as Whitman may not be following former CEO Leo Apotheker’s software expansion strategy after all.

The announcement was followed by another top level change, as Bethany Mayer was appointed as senior vice president and general manager of the HP Networking business unit.  This development was accompanied by news that HP Networking sales director John Ansell will now be in charge of the entire HP UK business, replacing Barry Bonnett as he exits the company for undisclosed reasons.

HP is trying to turn things around with its existing software initiatives, starting with their webOS division, as they launched the Weekly App Hack, where app developers will have one week to develop an app based on the specific theme/code of the week.

They’re also flaming the fires of their feud with Cisco Systems as HP announced an expansion of its product portfolio for the FlexNetwork with new products aimed to stretch across their entire portfolio starting from the FlexFabric (data center) to FlexCampus to FlexBranch to the mobile space with new mobility-related features in the latest version of its Intelligent Management Center (IMC).

“In the data center, a lot of the traffic that’s normally gone in a three-tier architecture really needs to go across servers,” said Mayer.

HP strengthened their feud with Oracle as they made an interesting partnership with Oracle’s top rival SAP.  The partnership entails that HP Enterprise Services customers will gain access to SAP applications hosted remotely on the company’s datacenters.  The SAP (Customer Relationship Management) CRM is the only current app available in the platform though no news was made if there will be more apps coming in the future.

HP also launched the t200 Zero Client, a device meant to be attached to a monitor, and when used with a host, can allow up to 15 users to share a PC.  The t200 can connect to an HP Compaq ms6200 host via USB for close-proximity computing environments, or via Ethernet for more physically dispersed deployments.  The operating system is Windows MultiPoint Server 2011 and is priced at $99.

According to HP, the t200 will reduce the need for multiple physical PCs which in turn simplifies management as well as decreasing the chore of doing software upgrades.  The device is appropriate for use in small and medium sized businesses which includes call centers, schools, medical offices, manufacturing sites and other organizations with multiple employees in a shared workspace.

As for HP executive chairman Ray Lane, handling the company’s multiple strategies and angry investors, other areas of his life have taken a back seat.  “To do HP, I’m just not going to do anything new this year.  That’s the trade off,” Lane said in an interview with the Wall Street Journal.

And for those of you waiting to hear what HP has in mind for their PC business, you don’t have to wait until the end of the year, as Whitman is to announce their plan by the end of October.

While speaking at Fortune magazine’s Most Powerful Women Summit in California, Whitman stated, “We have to make a final decision about what to do with the PC division.  It’s a decision I want to make much faster than my predecessor. I want to make it before the end of October.”

If you ask Dell CEO Michael Dell, HP should stick to the PC business, since only 5% of the world’s microprocessors go into servers and storage and 95% go into PCs.


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