Buried toward the end of the article is a quote from Gary Peterson, a principal analyst with Gap Intelligence in San Diego.
"... the printing industry is a mature one, and there is a movement within HP to use IPG's 18.5 percent profit margin not to grow the printing segment, but move it into IT services, where IBM Relevant Products/Services dominates..."
Peterson goes on, "What we've seen from (CEO) Mark Hurd is that he's very interested in infrastructure Relevant Products/Services services. He wants to slowly evolve HP into IBM."
And they're using IPG profits to power Relevant Products/Services that transition, he said.
"It's really a matter of IPG funding the transitional costs of acquiring EDS and funding how that division of HP grows and succeeds," he said. "They purchased EDS to get a better foothold in the enterprise Relevant Products/Services market."
For example, when IBM approaches a huge company like General Motors, it can give them high-level customized server Relevant Products/Services, software, hardware and support..."
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Over the past few months, HP has overtaken Dell in laptops, purchased EDS and is actively working with Intel and the G6 - CISCO is getting into servers now as well.
It isn't like HP is going to leave the printer and output space completely, just come at it from a different direction.