Hewlett-Packard may have plans to offset personal computer unit (PSG), but the plans generally contains caveats. The company should rethink itself, redevelop its strategy and redesign itself, thinks a ex-high ranking HP employee Rahul Sood, who now works at Microsoft.

The decision to spin-off personal systems group (PSG) is strange for many reasons. But the main one is: what happens to HP - as a brand and as a company - when its personal computers vanish into oblivion? Will HP be able to be as competitive without PC unit (which size and footprint greatly helps to HP's economic strengths)?

"My guess is [Leo Apotheker] sees challenges internally in PSG, he doesn’t fully understand how the hardware business operates, and he feels that hardware margins are far too slim to bother with. In my opinion hardware is the footprint that makes HP who they are. HP’s gigantic PC footprint is easily their biggest strength, not their software and services. If HP could leverage their biggest strength in a meaningful way they’d be almost unstoppable," said Mr. Sood in aninterview with X-bit labs.

At present the management of HP is trying to get rid of the personal solutions group, which sell PCs to end users.

Tags: Voodoo, HP, Hewlett-Packard, Busioness