Hewlett-Packard: Intel and Microsoft Are Direct Competitors

HP Recognizes Long-Term Partners As Emerging Competitors

by Anton Shilov
10/10/2013 | 11:25 PM

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.