The world of computing has changed dramatically in the recent years thanks to new devices, trends and business approaches. As a result, many long-term partners are now becoming competitors as software makers shift to hardware and vice versa. Chief executive officer of Hewlett-Packard this week admitted that Intel Corp. and Microsoft Corp. are evolving into HP competitors.
“HP's traditional, highly profitable markets face significant disruption. In Personal Systems for example, Wintel-based devices are being aggressively displaced by ARM-based PCs and mobile devices running competing operating systems. Tablets are growing while the traditional PC business is declining. And even though the number of personal devices globally is exploding, printing remains somewhat flat worldwide,” said Meg Whitman as the addressed the audience during HP’s securities analyst meeting 2013.
As an example of market shifts, chief exec of HP reminded the ongoing situation on the market of enterprise computing. The shift to cloud-related infrastructure, software and services is significantly outpacing the need for traditional and virtualized hardware. Licensed software business is suffering from the rise of service software business models.
The head of HP is confident that the company has tremendous opportunities to capitalize on the new trends by leveraging the assets that it has. However, there is another thing that Meg Whitman recognizes: its long-running partners, who also have incredible amount of assets and technologies, are becoming its rivals.
“We are seeing profound changes in the competitive landscape. Our competitors are expanding across the IT stack with integrated products and solutions. Our business-specific competitors are exerting increased pressure in targeted areas and are going after new markets. We also have some emerging competitors who are disrupting markets with new technologies and new business models. Current long-term HP partners, like Intel and Microsoft, are increasingly becoming outright competitors,” said Ms. Whitman.
What is interesting to note is that Microsoft is entering the market of hardware with Surface tablets and eventually Lumia smartphones, whereas Intel is investing into Google Android and Tizen operating systems. What remains to be seen is how HP plans to compete against both at the same time.
Tags: HP, Hewlett-Packard, Intel, Microsoft, Windows, Surface, Business
Comments currently: 5
Discussion started: 10/12/13 03:39:07 AM
Latest comment: 01/08/14 11:52:41 AM
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No one cares what HP thinks or does at this point - about anything really. Which is interesting because not more than 5 years ago they were highly relevant in the fields of PCs, commodity servers, printing and high-end enterprise computing. I wonder how long they can survive as such a massive, bloated company by gouging their remaining customers on toner cartridges and printer ink. LOL.
10/12/13 03:39:07 AM]
HP is correct. Companies are becoming more vertically integrated - Apple, MS, Sony, Amazon, Samsung. HP wants to go this way too, but it has to innovate. Sadly, I put HP and Dell in the same sinking boat. They will both join Xerox as an office machine supplier.
10/12/13 03:26:20 PM]
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dell is doing fine, HP is selling cheap crap machines which look great in the brochure but they barely made it to the end of their warranty period.
People have noticed this and shift from cheap made but powerful products to less powerful but better made (and higher quality) products.
Xerox in the other hand is doing great in printing machines for the pro market, which HP does not. They do have an upper hand in large format printing (plotters) but if they keep going like that I believe xerox, mutoh, mimaki and roland will start taking more and more from their share.
So the thing is HP is going down, if they don't do something to change that, they still have time, but they lack the CEO who have some vision for the market and future innovations that can help them get back in track.
10/12/13 10:19:00 PM]
Dell is doing fine? Over the past 6 months there was a struggle to gain control of the company - Dell wanted it in his hands because he believed taking it private was the only way to change its direction for survival with no shareholders to please - he could make radical decisions without that level of accountability.
10/13/13 05:21:34 PM]
Printers provide no profit, it's tincture that's expensive and highly profitable.
As people go more digital, less need they have to print analog paper. In the past, ppl used to receive email and print it to read. Now they take their tablet wherever they go with all data they need, places where no printer is available, therefore they get used to not print anything.
Its own CEO said other companies are inovating and HP is kinda behind that. He pointed the problem, and didn't show the solution, he didn't say what HP is doing about it. That's troubling.
If HP doesn't move to tablets and enterprise trends as its competitors are doing, I see it being bought for a tiny price in the future.
01/08/14 11:52:41 AM]
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