HP Transitions Away From Hardware

PeterWalk

Could we be looking at the slow fade of HP, one of the leaders in technology since 2000? It may appear so, as earlier this week, they ceased production of their tablet, the TouchPad, as it was underperforming comparative to the iPad or Samsung Galaxy. Then, with the company being prepared to stop making smartphones with its newly redesigned WebOS operating system and possibly selling off its printer and computer servers, and focusing solely on software and technology services. Is it a bad idea for HP to do that? According to one source, yes, as they could be several years behind other companies in that fold. HP could be making one huge mistake, in getting out of the $41 billion dollar personal computer business, and that’s just for itself. So, I hope they’re making the right move for themselves.

Granted, getting out of the hardware business and moving into the software business, which is a lot more profitable could be a financial gold mine for the company, but can it hold on? There are also rumors of Oracle, another software giant into buying the rest of HP, but according to the article those rumors are false. There is also a lot of cost incurred with getting out of the hardware business, how about $1 billion worth? But, then again, this could be a smart move by HP to remove the hardware division, and sell that off, as it got around $85 billion from its software division. So, it may be worth it. This could be a high risk high reward proposition on HP’s part, and for me, I’m hoping it pays off, as I enjoy HP’s products and what all it has done for the computer industry. Here’s wishing them good luck.

Source :

http://www.mercurynews.com/breaking-news/ci_18749432

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