Tuesday, April 18, 2006

Good Atricle on Hewlett-Packards new Direction

I know trusting this Mark Hurd guy was the right move he sounds like the kind of guy that can turn this company around after Carly Fiorina nearly ran it into the ground. This article really goes into some detail on his cost cutting and his vision for the future of the company.

H-P now is divided into six buckets of revenue, with imaging and printing accounting for about 29% of revenues but 57% of total operating profit; personal systems (desktops, notebooks and mobile devices), 30% of revenues but only 11% of profits; enterprise computing, 19% of revenues and 13% of operating profit; services, 18% of revenues and 19% profits; financial services, 2% of revenues and 4% of profits; and software, 1% of revenues and losses.

I think only their software divison is a weakpoint in the company. Most of the time HP printers come with lots of crappy bloatware that most people don't really need. Many times a driver file is massive and has lots of different options that many end-users don't really need. The driver itself is pretty solid and works like a champ though. The stuff it comes with it seems like a big waste though.

I'm sure people use all the digital photo product suites and other things that come with their printers. But most of the time they are just thrown in a drawer and forgotton or loaded onto the PC with the driver install and quickly get moved into the Rarely Used Icons folder. I wonder if HP does focus grouping on how much their excess software gets used.

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