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BLOG: HP decides that being bigger is better

Patrick Thibodeau | Oct. 28, 2011
In opting not to get rid of its PC division, HP -- and new CEO Meg Whitman -- offered some insight about what type of company they think HP should be.

Gillett cites the coming transition to Windows 8 and the continuing evolution of tablets as good reasons to stay in the personal systems business. He also pointed to the growing smartphone market and the increasing use of personal computing devices in the workplace.

"Why make yourself a clone of IBM by following the path they tread?" said Gillett.

Rob Enderle, principal analyst at the Enderle Group, said the Personal Systems Group decision announced Thursday makes Whitman look good. "The spinoff of the PC division made no strategic sense for HP, there were simply too many dependencies both ways and it would have crippled large customer loyalty, which is already stressed as a result of the Oracle dust-up ," said Enderle

The decision to keep the PC division "showcases that she makes measured decisions and is difficult to trick into doing something stupid," said Enderle. "I think it is another indication that they chose well in regards to bringing Whitman in to right the ship."

 

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