AllThingsD » HPQ

Sun's Senior VP of North American Sales Now HP’s Senior VP of North American Sales

John Paczkowski — Thu, 01 Oct 2009 22:00:30 +0000

Randy Seidl’s bio is still live on the Sun Microsystems Web site, but the exec who once oversaw the company’s North American sales has new digs.

At Hewlett-Packard.

Quite a coup for HP (HPQ), which clearly hopes Seidl brings a bunch of Sun (JAVA) resellers and customers along with him. And quite a blow for Sun, which is seeing customer loyalty tested to the extreme thanks to the company’s planned takeover by Oracle (ORCL).

“Customers and partners alike, especially those grappling with the uncertainty of Sun’s future, need a technology partner that can eliminate barriers to business growth quickly,” Dave Donatelli, executive vice president of enterprise servers and networking at HP, said in a gloating statement. “We anticipate that Randy’s knowledge of the real business issues faced by today’s CIOs, coupled with his high level of energy, passion for technology and a strong network of channel relationships, will expand HP’s success.”

Sun's Senior VP of North American Sales Now HP’s Senior VP of North American Sales

John Paczkowski — Thu, 01 Oct 2009 22:00:30 +0000

Randy Seidl’s bio is still live on the Sun Microsystems Web site, but the exec who once oversaw the company’s North American sales has new digs.

At Hewlett-Packard.

Hewlett-Packard: Scattered Patches of Brightness

John Paczkowski — Tue, 18 Aug 2009 20:33:14 +0000

Hewlett-Packard (HPQ) posted its quarterly financials Tuesday afternoon and they were slightly better than expected, driven by a two percent increase in PC shipments. Quarterly profit fell 19 percent to $1.64 billion, or 67 cents a share, on revenue of $27.45 billion. But excluding one-time items, HP earned $2.2 billion, or 91 cents a share, a penny better than analysts surveyed by Thomson Reuters had forecast.

And HP seems confident of its performance going forward. The fiscal fourth-quarter earnings view it issued today is above expectations, and the company is maintaining its fiscal-year earnings target. That bodes well for the industry.

“Business is stabilizing,” HP CEO Mark Hurd said in a statement. “We made positive gains in extending our market leadership in key segments and strengthening our competitive position….We are confident that HP will be an early beneficiary of an economic turnaround and will continue to outperform when conditions improve.”

An Hour and 14 Minutes on Apple.com? Wow. Try Spending That on Dell’s Web Site Without Falling Asleep.

John Paczkowski — Wed, 01 Jul 2009 12:20:48 +0000

Here’s an interesting metric: Apple’s Web site last month drew more than 55.7 million unique visitors, more than the site of any other computer hardware manufacturer, according to a report released this week by Nielsen Online. The number of Apple (AAPL) visitors was more than double that of Hewlett-Packard (HPQ), which drew 21.9 million people, and triple Dell’s (DELL), which drew 16.8 million. May visitors to Apple’s Web site spent an average of an hour and 14 minutes on it.

Not much of a surprise here, I suppose, given the level of anticipation that typically accompanies the release of a new iPhone. Nielsen says “anticipatory buzz” for the iPhone 3GS was near-deafening. “The new iPhone 3G S sent blog mentions up 1,226 percent week-over-week on June 8, the day of the announcement. After the initial announcement, buzz dipped but again picked up after the phone became available to consumers on June 19, with blog mentions more than doubling compared to the week prior.” The chart, below (click to enlarge):

HP Announces PC-Free Printer

John Paczkowski — Mon, 22 Jun 2009 17:00:04 +0000

Hewlett-Packard ushered in a new paradigm for printing today, one absent the PC. This morning the company announced a wireless touchscreen printer that will allow users to print documents from the Web without ever using a PC or browser.

The device, dubbed HP Photosmart Premium with TouchSmart Web–a grand mountain range of a name if there ever was one–features integrated touch access and a selection of print apps through which users can find news, maps, coupons, movie tickets and recipes from the likes of USA Today, Google (GOOG), Fandango and Coupons Inc. Price: $399.

“Twenty-five years ago we invented consumer printing and today we are taking advantage of the content explosion and reinventing the category by launching an entirely new printing platform–powered by touch and empowered by the Web,” said Vyomesh Joshi, executive vice president, HP Imaging and Printing Group. “By giving people access to the content they want at the touch of a finger, the ability to customize their printing experience and create their own apps, and enabling easy ‘one touch’ wireless set up, we are driving a significant shift in how people will be printing in the future.”

Not quite sure how significant a shift this represents. Is printing from the typical PC really so tiring and troublesome that it needs to be eliminated? In any case, here’s the HP (HPQ) press release:

HP Introduces World’s First Web-connected Home Printer
New applications platform revolutionizes printing in web-connected world

SAN FRANCISCO, June 22, 2009 – HP today unveiled the world’s first web-connected home printer: The HP Photosmart Premium with TouchSmart Web.

HP is bringing the power of the web directly to the printer and combining it with HP’s TouchSmart technology to give people quick, easy, touchscreen access to popular digital content.

Designed for the digital generation and connected households, the HP Photosmart Premium with TouchSmart Web features an entirely new web-based printing platform with HP applications (apps). Similar to other Internet-connected devices, these apps, which are viewable on an extra-large, intuitive-to-use TouchSmart panel, allow people to connect instantly with fun, informative and personal content.

In addition to receiving apps preloaded on the printer, people can download new ones as they become available at the HP Apps Studio to suit their interests and needs. With the sweep of a finger, users will be able to browse and view popular web destinations and simply touch the app of their choice to launch a web page where they can customize and print content on demand in an easy-to-read format.

As pioneers of this new content-on-demand delivery platform, the world’s first HP app partners will be USA TODAY, Google, Fandango, Coupons.com, DreamWorks Animation, Nickelodeon, Web Sudoku and Weathernews Inc. Through these apps, people will have free access to customized daily news, maps, coupons, coloring pages, movie tickets, recipes, personal calendars and more – all at the touch of a finger.

The new printers also will connect directly to a user’s Snapfish account to view, print and upload photos. People additionally can access projects from the HP Creative Studio.

People will be able to create and share their own apps to customize their printers through the HP Apps Studio starting in late 2009. “Twenty-five years ago HP invented consumer printing and today we are taking advantage of the digital content explosion to reinvent the category with an entirely new printing platform – powered by touch and empowered by the web,” said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. “By giving people access to the content they want at the touch of a finger, the ability to customize their printing experience and create their own apps, and enabling easy ’one touch’ wireless setup, we are driving a significant shift in how people will be printing in the future.”

Free HP apps available at launch
Industry leaders from the worlds of news, entertainment and information are the first to offer free apps debuting on the HP Photosmart Premium with TouchSmart Web. Consumers will be able to print daily, weekly or monthly news from USA TODAY, updated in real time and customized according to their interests, such as sports, news and politics.

“Today marks another change in the way our readers can access news and information as we bring print-on-demand to consumers’ homes,” said Jeff Webber, publisher, USATODAY.com. “People can print the latest stories from USA TODAY at the touch of a finger to better fit their busy, on-the-go lives.”

From Google Maps, consumers will be able to enter their destination and print a map; from Google Calendar, they will be able to print their weekly schedule to place on their refrigerator or bulletin board.

With Coupons.com, users can save money by printing coupons for groceries, restaurants, entertainment and more. People also can browse and print recipes for quick, easy meal planning.

Consumers will be able to search movies in their local area from any one of Fandango’s 16,000 theater screens across the country. They can then buy tickets in advance and print their tickets at home or the office, helping ensure an easy and convenient movie-going experience.

To empower busy families, the printer provides one-touch access to fun coloring pages and templates from DreamWorks Animation and Nickelodeon. Through the DreamWorks Animation app users also will be able to view movie trailers to upcoming releases without having to log on to a computer. Nickelodeon printables will include color-ins, word finds, mazes and more from top properties, including “Dora the Explorer,” “The Wonder Pets!,” “SpongeBob SquarePants” and “iCarly.”

For commuters, Weathernews Inc. provides a weekly forecast to allow for informed travel planning. With Web Sudoku, people can quickly print brain teasers for light entertainment on the go.

World’s first web-connected printer
The HP Photosmart Premium with TouchSmart Web has an extra-large 4.33-inch touchscreen – the largest LCD touchscreen of any all-in-one inkjet printer on the market.

The versatile printer prints, faxes, copies and scans – producing laser-quality text documents and lab-quality photos – making it ideal for multitasking households. With a full range of wired and wireless connectivity options, the printer provides the flexibility to print directly from Wi-Fi-enabled PCs, Bluetooth®-enabled devices, the Apple iPhone and the Apple iPod touch using HP iPrint Photo.

ENERGY STAR® qualified, the all-in-one printer helps users save paper with automatic two-sided printing and reduces packaging waste by shipping in an innovative, reusable bag made from recycled plastics.

Pricing and availability
Expected to be available this fall, the HP Photosmart Premium with TouchSmart Web will retail in the United States for a target street price of $399.

HP Total Care
HP products are backed by HP Total Care, the company’s award-winning service, solutions and support, both in and out of warranty. The HP Photosmart Premium with TouchSmart Web comes with an exclusive toll-free telephone support number for quick access to trained experts who will help people get the most from their printers.

HP support professionals also are available 24/7 by phone, email and real-time chat. HP’s online support options include consumer support forums, online classes offered at no charge, a dedicated support video channel, the PC Tune-up Center and the newly designed HP Customer Care site, recently named one of the “Ten Best Web Support Sites of 2009” by the Association of Support Professionals.

Customers also can access printer diagnostics and software driver updates with HP Printer Check. More information is available at www.hp.com/go/totalcare.

So Much for Those Better-Than-Expected HP Earnings [UPDATED]

John Paczkowski — Tue, 19 May 2009 21:13:49 +0000

Hewlett-Packard’s second-quarter financials may have been in line with forecasts, but they were troubling nonetheless. A number of analysts predicted that the company might report better-than-expected earnings. Sadly, it did not. HP’s net income for the period fell 17 percent to $1.7 billion, or 70 cents per share. Excluding one-time items, the company earned 86 cents a share, compared with a profit of 87 cents a share in the same period last year. The results include charges of 2 cents a share related to a patent dispute. Sales fell three percent to $27.4 billion. Every division of the company, save one, reported a decline in revenue. The lone highlight, Services, posted an increase, but that was due primarily to HP’s acquisition of EDS. The grim details:

Enterprise Storage and Servers: down 28 percent
Software: down 15 percent
Personal Systems Group: down 19 percent (though it claims the leading market position in PCs in every region)
Imaging and Printing Group: down 23 percent
Financial Services: down 6 percent
Services: up 99 percent

Clearly, the decline in consumer and business spending is weighing heavy on HP (HPQ) and will continue to do so. The company expects third-quarter revenue to be approximately flat to down two percent sequentially. And it says full-year revenue will slip approximately four to five percent from the prior-year period.

UPDATE: During a conference call to discuss earnings, HP’s leadership said the company will sack about two percent of the workforce in the months ahead as it looks to trim costs. 6,400 employees will lose their jobs as a result.

Cisco to Rivals: Tonight You Sleep in Hell!

John Paczkowski — Mon, 16 Mar 2009 18:06:48 +0000

Cisco has finally crossed the Rubicon.

Long a partner to the big server makers, the networking equipment giant today became a competitor, announcing an aggressive push into the server market. No longer content to peddle switches and routers alone, Cisco (CSCO) is now selling what it calls a unified computing system–a full-blown data center solution that encompasses everything from servers and storage to connectivity and virtualization services. The move is a brazen challenge to IBM (IBM), HP (HPQ) and other vendor partners with whom Cisco had once cooperated. “We’re going to compete with HP,” Cisco CTO Padmasree Warrior told The Wall Street Journal. “I don’t want to sugarcoat that. There is bound to be change in the landscape of who you compete with and who you partner with.”

Of course, but “change” is rather a tame word for a potentially market-disrupting expansion of Cisco’s business. This is a power grab, plain and simple. A game-changer. Cisco is offering an integrated approach to what’s long been a multivendor arrangement. Whereas before, CIOs would purchase servers from one company, virtualization software from another and networking from yet another, the networking giant is proposing they now purchase them together from a single vendor: Cisco. And that puts it on a collision course with IBM and HP.

“H-P, IBM and Cisco are the new four horsemen of IT infrastructure and they are all fighting to increase their share of the enterprise IT wallet,” Forrester Research analyst James Staten told Marketwatch. “They have all benefited from growth of the market and by taking share from weaker players, but are now needing to go after each other’s strongholds to keep growing. They are definitely leveraging technology evolutions that drive unification, so customers win through this competition, but it’s going to be a bloody fight.”

Points Off for Windows?

John Paczkowski — Wed, 04 Mar 2009 18:00:40 +0000

Brave guy, Yair Reiner, for singlehandedly assailing the “Macs are more expensive” myth (or truism, depending on your particular worldview). In a research note on Apple’s new desktops, the Oppenheimer analyst compared, spec-by-spec, the new Apple (AAPL) iMac, Dell’s (DELL) XPS One 24 and Hewlett-Packard’s (HPQ) TouchSmart IQ800t and concluded that the iMac offers a better value (click on chart below to enlarge). “A side-by-side comparison suggests the new iMacs match up favorably against Dell and HP’s All-in-Ones on a price-to-performance basis,” Reiner wrote. “For example, the $1,499 model has a faster CPU and RAM with better or comparable graphics, and is still $100-$250 cheaper (though it lacks a TV Tuner, ~$60-$100 upgrade).”

HP CEO Mark Hurd's Memo to the Troops on Pay Cuts

John Paczkowski — Thu, 19 Feb 2009 13:42:03 +0000

Here is the letter Hewlett-Packard (HPQ) CEO Mark Hurd broadcast to employees Wednesday explaining the company’s disappointing reversal in outlook for the fiscal year and its plans to reduce pay and benefits across the board. Shaken by the worsening economy, Hurd said he will reduce his own base salary by 20 percent, executives’ pay by 10 percent to 15 percent, and most employees’ salaries by five percent. “In an environment like this, there’s no margin for error and no tolerance for inaction,” he wrote.

Hurd’s letter in full:

Today, HP announced first quarter results amid one of most difficult economic downturns that any of us has ever faced. I am proud to say that we continue to execute well in this very challenging environment.

We grew revenue 1 percent year-over-year, or 4 percent in local currency, and you need to look at these numbers a little differently this quarter. For the first time in a long time, the dollar was strengthening, so the currency conversion was actually a headwind for us. We also continued to show strong operating leverage with non-GAAP operating profit up 10 percent year-over-year. This was a solid performance, and I thank all of you for your efforts.

But really, Q1 was like a tale of two companies.

HP Services — as a result of EDS and TS — had a strong quarter, delivering virtually all of the local currency revenue growth and more operating profit than any other business. It’s gratifying, because this performance was possible because of the hard work we’ve been doing to restructure those businesses.

When you take HP services out of the mix, it’s a very different picture. PSG had revenue down 19%. ESS had revenue down 18%. IPG had revenue down 19%. In fairness, across IT and even other industries, product businesses are struggling in this economic climate. And we did gain share in key market segments. PSG and ESS gained roughly 1 and 3 points of share, respectively. In IPG, quite frankly, we still have work to do across a number of dimensions like inventory, both owned and channel inventory.

In an environment like this, there’s no margin for error and no tolerance for inaction. To give you a little insight into my world, after we report our earnings, we engage in a dialogue with analysts and investors. They’re going to ask what we’re doing in light of the current environment to right-size these businesses.

The math is pretty straight forward. From a productivity standpoint, you’re supposed to reduce headcount on par with declining revenue. If you believe the environment isn’t going to improve, you should take a bigger cut to get in front of the problems. You can do the calculation, as easy as I can. We have about 100,000 people in our product businesses, with revenue down roughly 20%, and an environment that may not get any better in 2009.

I’ll be asked by investors, “Where’s the job action, where are you taking out this roughly, 20,000 positions?” Well, I don’t want to do that. When I look at HP, I don’t see a structural problem of that magnitude. There are pockets where restructuring needs to happen, and areas where actions will be taken as part of our ongoing workforce optimization process. But at a company-wide level, I don’t believe a major workforce reduction is the best thing for HP at this time.

I think we are fundamentally sound, and when the economy picks up, I want HP to be strong, and to take share and to outgrow the market. I said it last quarter, my goal is to keep the muscle of this organization intact. But we do have to do something…because the numbers just don’t add up and we need to have the flexibility to make the right long-term investments for HP.

So we are going to take action. We have decided to further variablize our cost structure by reducing base pay and some benefits across HP. My base pay will be reduced by 20 percent. The base pay of Executive Council members will be reduced by 15 percent. The base pay of other executives will be reduced by 10 percent. The base pay of all other exempt employees will be reduced by 5 percent. For non-exempt employees, base pay will be reduced by two-and-a-half percent. Additional efficiencies, including changes to the US 401(K) plan and the share ownership plan, will also be implemented. Of course, the implementation of all of these actions is subject to compliance with local laws and regulations. Follow-up communications will detail the timing and the plans in your location.

This does not change our pay-for-performance strategy at HP. If we outperform, and there is a chance we will, then we will increase the total amount of variable pay. In fact, the financial flexibility we’re gaining helps put us in a better position to compete and to win in the marketplace, and fund the bonus program this year based on pre-adjusted salaries. If the company performs well, if our individual businesses perform well and if you perform well, then you could potentially make up the difference with your bonus. I can’t promise you anything, but I tell you…there is a chance…if we get this right.

To be clear, these actions don’t make up for all of the decline in revenues. We’re also benefiting from the tough actions we’ve taken over the last few years. People always asked, “Why are we so focused on getting costs out in good times?” Now…is why that work was so important. We’ve been able to bank some of those savings, and we’re making a withdrawal, which along with the actions we’re taking today, I hope, will get us through this recession.

Again, there are no guarantees. If the environment gets worse, if the downturn lasts longer than we’re assuming, if our performance declines, we’ll have to reassess. But for now I believe this is the right thing for the strength of HP.

I know this is a tough time. But if we get this right, HP can be the kind of company that not only has led, but will extend its leadership. We can emerge from this recession in a powerful position to create value for our customers, our shareholders and our people for years to come.

Thank you.

Mark

HP CEO Mark Hurd's Memo to the Troops on Pay Cuts

John Paczkowski — Thu, 19 Feb 2009 13:42:03 +0000

Hurd’s letter in full: