For nearly three decades, personal computer makers thrived by building their PCs around two key ingredients: Intel chips and Microsoft Windows. Now, it looks like the partnership is finally winding down.
Last Thursday, Hewlett-Packard announced that it is taking a hatchet to its business and doing some radical restructuring. The company is looking to spin off its industry-leading but struggling personal computer business. HP also killed off the TouchPad tablet it launched last month, as well as its webOS smartphone line.
Yes, it is quite a shocking news, but according to analysts, it was an expected move since the market has steadily gone down due to the advent of laptops, smartphones and the evolutionary tablet computers. Added to these latest gadgets are new innovations in web applications and Cloud storage. Consumers are significantly rethinking the concept of a computer and it is not doing any favors for the PC.
Aside from that bold step of leaving the PC manufacturing world, HP also said it has agreed to buy British software developer Autonomy for roughly $10.2 billion in cash. At $42.11 per share, the purchase price represents a 58% premium over the company’s average share price over the past month. Autonomy specializes in database search and other enterprise software technologies.
HP CEO Leo Apotheker said that the moves will squarely position HP in software and in information to create the next generation information platform. He continued by saying that the move is a transformation to position HP for a new future and driving shareholder value.
HP will run Autonomy as a separate company, but HP will “look for synergies.
This decision would likely be the end of one of the greatest eras in technology. However, the move is still very much in line with what CEO Apotheker unveiled last May, wherein he stressed that the company needed to put greater investment into its “value-added services” or it will be left with a business that is running out of steam.
Source: http://money.cnn.com/2011/08/18/technology/hp_pc_spinoff/index.htm
http://money.cnn.com/2011/08/19/technology/end_of_wintel/index.htm
Based on articles by David Goldman of CNN MoneyTech