With New CEO, HP May Face Major Shift
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The next chief executive of Hewlett-Packard Co. will need to decide whether to stick with Carly Fiorina's two-pronged strategy of trying to beat the company's rivals in what they do best &#151; IBM in premium computers and services, Dell in business and consumer systems.
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By MICHAEL LIEDTKE  SAN FRANCISCO - After replacing Carleton Fiorina as Hewlett-Packard's chief executive nearly 18 months ago, Mark Hurd quickly cobbled together a successful comeback from the jumbled pieces left behind by one of corporate America's most powerful women.
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The company is changing tack under CEO Robert Stephens and may soon find itself in direct competition with several longtime partners.
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(InfoWorld) - DellÂ on Thursday announced that Michael Cannon, the current president and CEO of electronics maker Solectron, will head a newly formed group that will oversee much of the company's operations, including manufacturing, procurement and suppliers. Cannon's appointment is the latest sign of a management shakeup underway at Dell, and underscores the seriousness of the challenges facing the company. Paul Tufano succeeds Cannon and will serve as interim CEO while the company searches for a permanent replacement. Once the PC industry's superstar, Dell has struggled in recent quarters. The companyÂ lost its title of world's largest PC vendorÂ to a resurgent Hewlett-Packard. The company also faces scrutiny from the U.S. Securities and Exchange Commission intoÂ its accounting practices, which forced the company to delay filing its financial results for the second and third quarters of 2006. In addition, Dell last yearÂ recalled millions of defective laptop batteries, after they were determined to pose a potential fire risk to customers. In a bid to turn things around, Dell CEOÂ Kevin Rollins was replaced last monthÂ by Michael Dell, the company's chairman. Dell's return was accompanied by warnings that the company's financial results for the fourth quarter, to be announced March 1, will fall below analyst expectations. Cannon, who was president and CEO of hard-disk maker MaxtorÂ -- now part of Seagate TechnologyÂ -- before joining Solectron, will be responsible for improving Dell's manufacturing operations after he starts work on Feb, 26. His job includes the responsibility for opening factories that are closer to customers and improving the company's supply chain, Dell said, noting that plans are underway to add new factories in India, Poland and Brazil. The ultimate goal, according to Dell, is to improve product quality while shortening manufacturing times and reducing costs. Â
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IT managers may want to read and consider the implications of how new rulings set to take effect may impact their organization.
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Hewlett-Packard Co. announced today that Patricia Dunn will be replaced as HP chairwoman in January by CEO Mark Hurd. The move follows a scandal related to leaks from the company's board of directors.
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A person with knowledge of SundayÂs HP board meeting said there is a strong chance that Patricia C. Dunn will be forced to resign.
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Hurd knows best HP's CEO Mark Hurd plans to stick with what he knows best: cost cutting.â¦
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Software maker snags Hewlett-Packard veteran to lead fast-growing division, report to CEO Larry Ellison.
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Sprint Nextel's new chief executive, industry veteran Daniel R. Hesse, may bring serious change to the struggling wireless carrier, saying he will reevaluate its controversial high-speed Internet strategy and consider moving the company's headquarters from Reston.
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The next several weeks could dictate whether significant changes are required to get the company back on track and well positioned against Intel.
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At its annual HP World user conference in Chicago this week, Hewlett-Packard Co. (HP) will announce a number of enhancements to its HP-UX operating system, designed to narrow the gap between the capabilities of the company's Integrity and HP 9000 servers.
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Will a new president bring big changes for these companies?
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(InfoWorld) - Last year's HP Technology Forum was chased out of New Orleans by Hurricane Katrina. This year, storm clouds of a different sort hang over the event. As an estimated 6,000 attendees converge on Houston for the annual Hewlett-Packard user conference, the subject on many minds is the one the company is most loathe to discuss: theÂ shakeup of HP's boardÂ and theÂ prospect of criminal chargesÂ related to a spying scandal. The California Attorney General and a Congressional committee are among the institutions probing HP's possibly illegal methods of investigating news leaks from its board. HP has until Tuesday to respond to an invitation from the Oversight and Investigations Subcommittee of the Energy and Commerce Committee for HP's Chairman Patricia Dunn and General Counsel Ann Baskins to testify at a Sept. 28 hearing in Washington. But at the Technology Forum, a gathering of HP user groups, partners and other vendors, HP is focusing on its business success, which is considerable. With revenue, earnings and stock price all resurgent in the last year, HP CEO Mark Hurd could rightly say, "Pay no attention to that prosecutor behind the curtain," when he delivers a keynote address on Sept. 18. In the quarter ended July 31, HP's earnings-per-share (EPS) topped analysts' estimates at $0.52 on 5 percent revenue growth to $21.9 billion, compared to the year ago quarter. Across many of its business lines, HP, of Palo Alto, California, has gained on rivals, said industry analyst Rob Enderle. HP personal computer sales have grown with its "the computer is personal again" marketing campaign, Enderle noted. IBMÂ sold its personal computer businessÂ to Lenovo Group, in 2005, and Dell has suffered negative publicity from the AugustÂ recall of 4.1 million fire-prone batteriesÂ in Dell laptops. In storage, HP closed the market share gap with EMC in second quarter numbers released Aug. 29 by research firm IDC. With EMC's 20 percent share, based on unit sales, to HP's 19.3 percent, the two are in a "statistical tie" said Brad Nisbet, an analyst with IDC. "HP has been executing well under new management," Nisbet said, referring to Hurd, CEO since March 2005. In servers, HP is a strong second to IBM, according to IDC market share numbers, but has made some errors, said Enderle. It still is using Intel's Itanium processor in its high-end Integrity servers, which rivals aren't embracing. Gartner research shows that 90 percent of the Itanium chips shipped in the first quarter of this year ran on HP servers; neither Dell nor IBM build Itanium computers. Technology Forum organizers get tight-lipped when the conversation shifts to the board scandal. "That's HP's business," said Nina Buik, vice president of Encompass, one of the HP user groups planning the event. "We're not focused on those issues unless it impacts the technology." And as long as the scandal doesn't touch Hurd personally, the customer satisfaction should be unaffected, said Crawford Del Prete, senior vice president of research at IDC. . "I don't think [the scandal] is a drag on the company's success," he said. "I have not found one customer who said 'I'm not going to do business, or I am concerned about doing business, with Hewlett-Packard as a result of this.'" HP Technology forum runs from Sunday to Thursday this week.
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Poor power play Intel third horseman Andy Grove has chastised HP for its recent management shakeup. The printing, imaging and spying company should not have elevated CEO Mark Hurd to the Chairmanship, according to Intel's ex-top dog.â¦
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HP CEO Mark Hurd has now been through the iconic cauldron of raising his right hand at a Congressional hearing, swearing to tell the truth and nothing but, and having his strained visage beamed electronically across the land.
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Hewlett-Packard Co. (HPQ.N: Quote, Profile, Research) will be under pressure to sell its personal computer business after IBM&#39;s decision to sell its PC operations to China&#39;s