Hewlett-Packard, one of the biggest computer makers ever, is splitting up. The newer company will aim at building computer storage, data service equipment, software services and other business technical services. The other company will continue to build computers and printers.
Both companies will still be traded on the New York Stock Exchange. The new business technology oriented company is called Hewlett-Packard Enterprise. This split up will be official around October 2015, when their 2015 fiscal year ends. The split will take place under the leadership of Meg Whitman, HP’s chief executive. She didn’t like the split at first, but after watching her competitors on all sides thrive, she saw it was necessary, believing this will give the company a much needed competitive edge. They’re not the first and only ones to do this. Other mega tech conglomerates from IBM to Microsoft have either split up their company or gone totally private (which means they don’t have public shareholders to answer to).
Hewlett-Packard has been struggling for years now. In fact, this split up is part of the company’s five year program to turn things around. It goes to show you how critical business and cloud technology has become. These days, millions of systems can become one entity, thanks to the cloud. This cuts the server out and computers can interact with each other better than ever before. As more businesses realize this and change their storage and data habits, Hewlett-Packard couldn’t have picked a better time to take advantage of this trend. But this company has been through so much in recent years. This divide will split over $112 billion worth of revenue. Stocks are up 5% thanks to this move, but this move will also cost 5,000 jobs.? Can HP use this split to turn the company around? Will HP Enterprise succeed by serving businesses with these critical services? Or will it be too little too late?