HP announces separation into two new public companies

Posted on Monday, October 06, 2014
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By The Softcat News Team


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Earlier today HP announced plans to separate into two new publicly traded Fortune 50 companies: Hewlett-Packard Enterprise and HP Inc.

Hewlett-Packard Enterprise will offer services, infrastructure and software, enabling business customers in particular to tap into the opportunities presented by cloud, big data, security and mobility. Hewlett-Packard Enterprise will incorporate HP’s financial services division.

HP Inc. will continue to provide personal systems and printers to customers, whilst directing investments towards growth markets such as 3D printing.

Softcat’s CEO Martin Hellawell said, “This is positive news for Softcat and our customers. We have an overall relationship with HP but our relationship with the HP PPS division is quite independent of the relationship we enjoy with the rest of the business. While we have tried to find synergies between the PPS business and the rest of the company, in reality these have been few and far between. Ostensibly we have been dealing with two separate entities so decoupling the companies should not have a major impact on our business or more importantly on our customers.”

He continued “But I can see upsides. Anything that breaks down the size of an organisation without removing value, has got to be a positive thing. This should make both organisations more focused on their respective businesses and purpose. Both take control over their own destiny and both should become more nimble, agile and easier to deal with as a result. I can also see benefit for shareholders and who will now be investing in much clearer defined entities and the full shareholder value of the business should therefore be more fully recognised.”

Current HP CEO Meg Whitman will be president and chief executive officer of Hewlett-Packard Enterprise, and Dion Weisler, executive vice president of HP’s Printing and Personal Systems business (PPS), will lead HP Inc. as president and chief executive officer.

Martin added: “We have the privilege of enjoying strong relationships with both Meg and Dion. I think everyone knows Meg and her richly deserved reputation and channel centric approach by now. Dion is fantastic character with amazing positive energy and an equally partner and customer centric approach. Between Meg and Dion, the business is in very good hands.

For more information regarding the separation please don’t hesitate to contact your Softcat account manager or call 01628 403403.

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