Back in April, I wrote a bit about an issue that was, at the time, unthinkable.
In my article, Is Hurd funding IPG's Demise with IPG's Revenue?, we briefly explore the possibility that Hurd's restructuring of HP into a full, IT services company, is being funding from IPG(printer) profits.
The irony being that one day, HP will not sell printers.
Ludicrous, inconceivable?
Add it up:
Expected HP growth somewhere around 3-5%, with MFP growth at only 2%
Five years ago, HP's PC unit was losing out to Dell, and barely making a profit, today HP is the leading PC provider in the world
IPG growth has been over shadowed by PSG and other growing sectors of HP's galaxy
MPS programs supported by distribution partners, not "home grown" except for Enterprise accounts
Edgeline
EDS purchase
Mark Hurd
Canon Alliance
And who is Todd Bradley?
Indeed, if this is true, if the LaserJet is destined to follow OS/2, the next move we may see is an "enveloping" of IPG into PSG.
CrazyTalk? Oh really?
"...Earlier this week, The Wall Street Journal reported that Hurd is considering a plan to fold the printing business into Bradley's division. HP executives have declined to confirm or comment on the report, which the Journal attributed to unnamed sources..."- Mercury Hews
Here is the blip.
More from the Mercury News article:
"...As businesses shift to electronic records, some analysts believe they will print less on paper. Many consumers, meanwhile, are increasingly viewing Web-based material on their laptops, smart-phones and portable devices, without feeling the need to print.."
This is big - But what about Joshi?
The Mercury News article, here. A very good read.
In an article by Bob Evens, Information Week, he hearkens the same tone - HP needs to stake it's flag and the colors won't simply be printers/output:
"...Hewlett-Packard's got all the pieces to become just about whatever kind of company CEO Hurd wants it to be, and while that vision has yet to be fully expressed, the imminent merging of its PC business with its printer business is a huge step in the right direction. Because while both of those product lines are massive and are among the top reasons why HP's annual revenue of about $120 billion tops that of any other IT company, PCs and printers are simply not going to serve as the strategic platforms that define HP's future and its enduring value to enterprise customers..."
IBM, at one time, sold laptops, PC's and printers...
