HP’s New Strategy:What HP’s New Strategy Means for Customers

he specifics of Hewlett-Packard’s constructued shift away for hardware stay unclear, and opinions about the company’s more enduring focus on enterprise application and services have run the gamut based on data from “corporate suicide” to “it’s about time.”

What does this iteration of HP’s strategic future tell CIOs close to its IT services business, and more importantly, what does it indicate for HP’s outsourcing customers?

HP is without a doubt attempting to model itself in the wake of outsourcing powerhouse IBM, says Adam Strichman, founder of outsourcing consultancy Sanda Partners. He notes that Big Blue continues to heap the hardware it no longer owns into its outsourcing deals.

“IBM heavily markets its services offerings around having ‘IBM centric’ hardware platforms (including Lenovo Thinkpads), retaining all the marketing benefits of hardware without so much owning it,” says Strichman.

At the same time, if HP technically rids itself of its computer business, it could end up with families who may be wary of an outsourcer this pushes its own hardware the impression that it is now vendor-agnositc, adds Strichman.

“This is HP’s ‘necessary correction’ in the industry, buying out of markets where it’s getting a hiding and focusing on the enterprise clients who want alternatives to IBM,” says Phil Fersht, founder of outsourcing analyst firm HfS Research.

Increased investment in softwaresuch as HP’s just now announced plans to purchase Autonomy for $10.2 billionmay or may not benefit HP’s outsourcing clients. “It really depends on the type of software upon which they focus,” says David Rutchik, partner provided outsourcing consultancy Pace Harmon. “If they continue to build their enterprise capabilities in IT service management and related areas, then such a focus should be very positive for enterprise IT outsourcing customers. If they start competing more and more directly in areas this kind of as CRM and ERP, they may damage their strategic relationships with the SAPs of the world.”

HP’s CEO Leo Apotheker has said that the company is taking “bold, transformative steps…to drive creation of long-term shareholder value through a focus on fewer fronts, thereby improving its ability to execute, invest in innovation and drive a higher-margin business mix.”

But real transformation in the outsourcing industry requires additionally than crap shifting money from hardware to software. “Saying who HP is going to focus on software and services does not necessarily mean that the coming years of those areas becomes especially enhanced,” says Strichman. “It is a way to point the conversation away on the reality that the hardware business is going to move faster toward an undifferentiated commodity. It is all on marketing spin.”

Apotheker, who recently removed HP veteran Ann Livermore from her role as work of enterprise services and replaced her with John Visentin, in the past of IBM, “has a massive task ahead to restructure the business,” says Fersht. “They’ll need to take a close give the impression at beefing up the consulting, aide integration and offshore operations next.”

While Big Blue is clearly the target, HP faces formidable competition on offshore rivals with lessen cost structures. “It’s one event to go following IBM, but another to fend off the aggression of the rampant Indian IT services firms, such as Cognizant, Infosys, HCL, TCS, Wipro and the newly-merged iGate/Patni,” suggests Fersht.

HP owns a majority stake in Indian IT services provider MphasiS and might consider rolling it fully into its outsourcing business, argues Rutchik.

“A top notch acquisition or two to bolster its enterprise services presence, a well-executed management and boom reorganization, a cohesive and obvious marketing plan, and we may yet just see this organization start to fulfill some of its potential,” says Fersht.

HP’s outsourcing customers, however, shouldn’t wait virtually to see if HP delivers. “They should insist on getting a multitude of visibility into future plans and a commitment which HP will execute upon them,” says Rutchik. He points out the earlier this year Apotheker indicated total commitment to its hardware business, and the organization invested heavily in a tablet it has since scrapped.

“All of these kinds of are signs so the company is grasping to determine its future identity and ultimate focus,” adds Rutchik. “IT outsourcing customers, who are typically in multi-year agreements with a great deal of dependency on their provider for continuing success, difficulty much greater comfort that this is not just another do our utmost to get HP’s growth and share costs on an upward trajectory.”

Fersht agrees. “The time has turn up for terrific outsourcing customers to get closer to the strategies and plans of their providers,” he says. “[For] an skyrocketing majority of clients today, needs are attaining more complex, and providers are being surveyed to take on more challenging tasks. Clients need to understand how is under the provider’s hood and need to bring in positive they have the contractual terms that enable them to renegotiate their agreements in dim of acquisitions that could directly impact their existing relationships.”
Read more here


S Sivakumar said...

Hi, your blog is fantastic about Virtual CFO Services thanks for your valuable information. The majority little and standard sized companies, whether in the manufacturing sector or in the services part like IT or Biotech, need Chief Financial Officers, to manage their finances, statutory compliance and other processes. Bangalore CFO Services

Anonymous said...

I blog frequently and I seriously appreciate your information.
The article has truly peaked my interest. I am going to bookmark your website and keep checking
for new details about once per week. I opted in for your RSS feed as well.

Here is my web-site; seo

Anonymous said...

Very good article! We are linking to this particularly great article on our site.
Keep up the great writing.

my website: Going On dieser Website

Anonymous said...

My coder is trying to convince me to move to .net from PHP.
I have always disliked the idea because of the costs.
But he's tryiong none the less. I've been using WordPress
on various websites for about a year and am anxious about
switching to another platform. I have heard fantastic things about blogengine.net.

Is there a way I can import all my wordpress posts
into it? Any kind of help would be really appreciated!

My site :: Search engine marketing

Anonymous said...

Hi to everʏ one, it's really a ɡood for mе to visit this web pagе, iit inccludes pricelеss Information.

Feel free to visit my wеbhlߋg - hot download hot ƿlr products []

Anonymous said...

Eҳcellent post. Keeеp writing suсh kind of information on yoսr
site. Im гeally impressed by it.
ʜey there, You've performed a fantasttic job. I will definitely
digց it and in mmy opinjion recommend to my fгiends. I'm confident they'll be benefited from thiks web

Mу weblog :: how to get rid of acne scars fast home remedy

Anonymous said...

We are a bunch of volunteers and starting a brand new scheme in our community.

Your website offered us with valuable information to work on. You've
performed a formidable process and our whole neighborhood can be thankful to

For the best answer please have a look at this post :: free testosterone booster samples

Anonymous said...

Now I ɑm ready to do my brеakfaѕt, later than having my breɑkfazst
coming ver agan to read other neѡs.

Feel free to surf too my page: Real Estate Cebu City Philippines

Anonymous said...

I got this website from my buddy who told me on the topic of this site and at the moment this time
I am visiting this web page and reading very informative articles here.

Also visit my homepage - investment property databank

Anonymous said...

very useful post! I'm responding on upper comment :
"Who wants some upgrade? Be prepared to get new software for your Macbook"?.

Here is my web blog ... buy Dreamweaver CS5

Akshay said...

Useful quotes and messages thanks for sharing. nice looking site and great work.
valentines day Greetings
happy valentines day messages
valentines day images
valentines day wishes
happy valentines day quotes
happy teddy day

Vidyabalan said...

Reliably is Mother's Day is the chief novel by British maker Hilary Mantel, appropriated in 1985 by Chatto and Windus. It was animated to a constrained degree by Hilary Mantel's own specific experiences as a social work colleague at a geriatric recuperating focus which included visits to patients in the gathering and access to case observes, the loss of which have a basic effect of the novel.
happy mothers day 2017 wishes

Dooiitt Tube said...

Have Lovely and Beautiful Salwar Suit And Many More…
We Have Some For You In Your Budget For more…
Ramzan Mubarak Image

Dooiitt Tube said...

Have Lovely and Beautiful Salwar Suit And Many More…
We Have Some For You In Your Budget For more…
Plz visit:- Indian Clothing

Priyanka Chopra said...

You are a very persuasive writer. I can see this in your article. You have a way of writing compelling information that sparks much interest.

happy birthday brother images
happy anniversary messages
happy birthday to my mother

Siya patel said...

Anarkali Dress,Designer Dress has been divide into three main parts which actually
complete it, kurta, salwar and dupatta.The designs that we have at
our website are select very carefully so that you can make your decision quickly.
Plz visit:- AnarkaliDress

Tiya Patel said...

Designer Wedding Lehenga is perhaps the desire of every single girl in this world to look amazing on her wedding day.
It is certainly important that the bride must be the star of the show.The most beautiful woman at the wedding venue.
In India,Wedding Lehenga are the most obvious choice for the brides.There are many designer Wedding Lehenga in our site...
For more...
Plz visit:- Wedding Lehenga

Tiya Patel said...

Designer Designer Sarees is perhaps the desire of every single girl in this world to look amazing on her wedding day.
It is certainly important that the bride must be the star of the show.The most beautiful woman at the wedding venue.
In India,Designer Sarees are the most obvious choice for the brides.There are many Designer Sarees in our site...
For more...
Plz visit:- Designer Sarees

fenil chohan said...

You can buy from our large and diverse collection of salwar kameez, party wear suits, Bollywood collection, cotton Kurtis, Anarkali suits, Bollywood saree and many other products.....
We Have Some For You In Your Budget For more…
Plz visit:- Kurtis

Tiya Patel said...

India is the country of culture Festival.People in india are so crazy about festivals.Diwali is the biggest festival of India.It is the Festival Of Lights.
Christmas is the New Year of Christians.
Plz visit:- Happy Diwali Images
Merry Christmas Wishes
Happy New Year 2017

priyanshu beautique said...

You can buy Lehenga, Patiala salwar suits,Anarkali Suit, Gown, Salwar Suit, Saree and get an exquisite design for you. There is something for everyone here. We even offer customized tailoring. Visit at..
Anarkali Dress
Punjabi Dress
Wedding Saree
Lehenga Choli
Ghagra Choli
Silk Saree
Ladies Suit
Indian Saree
Designer Dress
Bridal Dresses

priyanshu beautique said...

Designer clothes are the reflection of personality of a person. It's very necessary to choose the wear according to an ocassion. In India,Designer Bridal Saree are the most obvious choice for the Young Ladies & Girls. Many more Collection is available at our site. For More....
Ladies Suit
Indian Saree
Designer Dress
Bridal Dress
Designer Kurti
Wedding Dresss
Punjabi Suit

priyanshu beautique said...

India is a land of varied culture and religion and throughout the year a series of interesting events and festivals take place here. So, it can be expected that if you will ever visit India you will get opportunity to enjoy at least a few such occasions.
Happy Diwali Wishes
Merry Christmas Status
Happy New Year Status

Post a Comment

Thank You for Your Valuable Comment.