EE Times Editor and Silicon Valley Bureau Chief Rick Merritt digs deeper into this move with comment from HP and analysts. Click here to read more.
HP announced Monday that it plans to split into two companies: Hewlett-Packard Enterprise and HP Inc. It's the culmination of a long-rumored move to separate the personal computer and printer businesses from the rest of the company.
Hewlett-Packard Enterprise will "define the next generation of technology infrastructure, software, and services," the company said in a statement, while HP Inc. will be "the leading personal systems and printing company delivering innovations that will empower people to create, interact, and inspire like never before."
The split has been on the table for years, advocated by many as a way to enable the enterprise-focused side of HP to focus on fast-growing, high-margin software and services. The consumer-centric Printing and Personal Systems Group business, which accounts for roughly half of HP's $112 billion in revenue expected in 2014, has been hard hit by declining PC sales and thin margins in recent years.
Meg Whitman, soon to be chairman of HP Inc. and CEO of Hewlett-Packard Enterprise.
Both sides of HP have shown signs of recovery during the three-year tenure of CEO Meg Whitman, but they're very different businesses, each serving distinct customers and facing challenges unique to each business. The PC side needs to be more responsive to consumer demands if it is to gain better footholds in the tablet and mobile-device markets. The enterprise side needs to move more aggressively into high-margin software and services, broadening from its data-center roots into business-facing technologies and consulting.
This story continues on EE Times sister site InformationWeek.