HP CEO says where enterprise software, storage units need to work harder

HP CEO says where enterprise software, storage units need to work harder

Summary: “For me, this all comes down to our willingness to win, and we are committed to winning,” HP CEO Whitman declared.

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While she maintained much of the optimistic rhetoric during the quarterly conference call on Wednesday, Hewlett-Packard CEO Meg Whitman didn’t mince words when it came to admitting HP needs to continue working harder.

Pointing towards recent news surrounding Project Moonshot and converged infrastructures, Whitman remarked these will form the “backbone of tomorrow’s cloud.”

See also: HP's Whitman reiterates 'multi-year journey' amid Q2 revenue miss

But for the moment, she described that the problem is balancing the "power of the past" with the "power of the future" for every enterprise unit from servers to storage.

According to HP's second quarter earnings report, its enterprise services (application and business services along with IT outsourcing) revenue declined by eight percent annually while the enterprise group overall was down by 10 percent.

The latter department covers networking, business critical systems, technology services, storage, and industry standard servers revenue.

In regards to these figures, HP’s chief financial officer Cathie Lesjak admitted that the quarter was “not what we expected it to be.”

But the converged infrastructures unit was a bright spot and was up 48 percent up year-over-year.

Whitman described the converged infrastructure market as "highly competitive" with many other tech stalwarts competing for share.

"For me, this all comes down to our willingness to win, and we are committed to winning," Whitman declared.

Without specifying more details nor a roadmap, Whitman noted that HP leaders are working on "revamping business models" to give its sales teams more tools and agility to adjust pricing.

Whitman hinted we'll hear more about these particular efforts later this year.

Topics: Enterprise Software, Hardware, Hewlett-Packard, Software, Enterprise 2.0

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26 comments
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  • Windows Down, Android Up

    Apparently Whitman had a lot to say about doing products with Android, but nothing about Windows 8. She said sales of the Slate 7 have been "encouraging", unlike their Windows products.
    ldo17
    • Maybe

      but are they making any money?
      thekman58
      • Seems to be working for Lenovo

        http://www.zdnet.com/lenovos-scattergun-approach-to-windows-8-bears-fruit-in-down-market-7000015807/

        So it's looks to be more of a lack of confidence in HP then it is Windows 8
        William Farrel
        • Lenovo builds better units

          I've worked on thousands of computers. Lenovo machines are built better than most. You can see the difference as soon as you open the case. And while most all components come from the same barrel, Intel, AMD, Realtek, ASUS, MSI, FoxConn, Hitachi, Wester Digital, etc., the propriatary components for Lenovo seem better executed and look technically better executed and more robust.

          Further the win 8 argument is about style not substance. Once you get used to it, it works fine even if the "why ride MicroSofts crazy bus" argument is material.
          maszsam@...
    • Race to the bottom...

      At $170 the Slate 7 includes only 8GB of storage, and it has no gyroscope, no GPS hardware, poor camera quality, and a low-resolution screen.

      A Nexus 7, with more storage, faster app loads, a better-looking screen, and GPS is only $30 away.

      So this is "encouraging"?
      thekman58
    • Makes sense. Who wants to buy Windows 8 hardware from a company

      that still isn't sure it wants to be in the PC business.

      Sorry to bust your bubble, I know you actually thought you were onto something.
      William Farrel
  • It's no wonder they're losing money on the server side...

    I've gotten close to 3 dozen calls over the last 3 months from HP sales reps offering to 'fill me in' on HP's new Gen8 servers. If they'd shift that duplication of call center effort toward lowering hardware costs, maybe I'd consider buying. Since nobody at HP seems to use a shared CRM that stops them from calling every other day, they've lost my business.
    adante256
    • If that's the reason you stopped buying HP

      Then you probably weren't a customer to begin with.
      happyharry_z
      • Insulting and

        assumes facts not in evidence
        maszsam@...
  • Maybe Congress should apologize to Whitman..

    sorry couldn't help myself :)
    dtdono0
  • I would never want to be a CEO in this industry

    On a slightly more serious note, I find it pretty strange that IT CEOs get fired when the company has a bad year, but when a Banking CEO has a bad year, they get a free bailout and a fat bonus.

    I wish CEOs in banking had to be accountable like other industries.
    dtdono0
    • Perhaps its time...

      ...to close your bank account and join a credit union.
      John L. Ries
      • But make sure...

        Make sure that Credit Union is locally owned and not owned by a big bank...

        Yes, this happens...
        SirHuxley
    • The industry is past its peak

      I and many have computer equipment that still serves it purpose in the decade old range and still going strong. With capicity well beyond demand, in addition to a growing number of solid state devices maturing with the usual price point adjustments insuring that commodity units will be servicable even longer as well as being more robust, demand as a function of time, barring a stunning new inovation, is near a lock to errode further.

      A more accurate prediction of HP's future may be more in line with expectations for other retailer like Sears or K-Mart. They are good companies but not likely to ever be top performers.
      maszsam@...
  • Authentic Business Giberish

    The whole call reminds me of this clip: http://youtu.be/ke5Mr5eCF2U. The only difference: it's authentic business gibberish, not the frontier stuff!
    Kuffy01
  • HP - Gone!!

    HP has done more to screw up the computer industry than any other known.
    They need to quit business NOW!!!!!!!!!!!
    BruceAnd
    • Care to state some facts?

      I use HP servers with good success. Their printers are a staple of the industry. They have lost some focus for now, but their core businesses are good.
      happyharry_z
    • That would be a different company

      But in the interest of contention avoidance, I won't mention it, HP has primary hurt itself, its stockholders, and its employees; not the industry as a whole (but I miss DEC).
      John L. Ries
  • Ever Try and Get Urgent Support from HP?

    Price and extreme aggravation are my biggest complaints with HP. I have been so frustrated with them I have written letters to about every person I could find an address for at HP. I will say one of the best responses came from one of Meg's assistants. She also tried to help me navigate through the support maze before giving up in frustration. They all want to sell me something but have no response in repairing what I have. UGH !!!!
    JR Rogers
  • HP has been circling the drain for years.

    Turning down the Apple PC, that was handed them on a silver platter, by Jobs and Woz was only the first of their major screw ups.
    The joke when I was in college was that "HP" stood for "High Price" but I willingly paid it because it was worth it.
    Now HP computers have more bloatware than any other computers and have numerous other issues. The stockholders are draining the cash cow as fast as they can while it's circling the drain and the marketing boys are having a ball with it. Their traditional strength of top notch engineering went with Aligent.
    People knew HP was screwing them on inkjet ink so HP lowered the price and put an ink dam in the cartridge. Same size cartridge, much less ink and, oh yes, they removed the number of ml from the packaging too to keep users in the dark. They've done this several times.
    My latest go round with HP? When calling for warranty support, the day after I bought an Officejet printer, I was told I had 315 days left on my "one year" warranty. They calmly told me that I had bought the printer two months before I actually had. I checked on the other one I had purchased at the same time, they had shaved three months off that one year warranty. That must save them a lot of money on defective returns. I am through with HP. I neither buy nor recommend them to any of my clients. In all honesty though I must say I love my HP11C, HP12C, HP15C and HP11C calculators, some of which are still working off of the original batteries after 30 years of use. Now that HP was incredible and was very deserving of respect.
    dussell