Why is HP Killing its PC Business?

August 24, 2011

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.

HP’s Todd Bradley on WebOS, PC business — Tech News and Analysis.

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