This interview with Todd Bradley, HP’s Executive VP, clearly indicates mixed feelings at the top level with the recent decision to kill HP’s hardware business. In the segment at 1:40, they quote David Packard,
You know the only thing worse than a shitty business? A big shitty business.
And that is exactly why HP is killing their PC business. Who cares if it does $40 billion in revenues. Huge top line revenues in a low-margin, declining business is more like a liability than an asset. Something has to give, eventually. HP is being forward-thinking and I think HP’s decision is probably right. The commodity PC business is a race to the bottom, we know that. And they’ve identified growth sectors they need to focus on–the high-margin enterprise software and consulting services. I suspect at some point they’ll offload the printer business as well.
Lastly, if you’re a hardware guy/gal, go back to school and learn how to write software. If you want anything to do with computers at a physical level, you need to move up into the enterprise storage or networking business.