HP Exits PC And Tablet Business…. Buys Software Company

HP dropped a bit of a bomb on the computer world today. After coming out with some dismal number, they announced that they would be exiting the PC and tablet business. First there’s the Personal Systems Group (PSG):

HP is implementing a plan to fundamentally transform the company. An important component of the plan is focusing its investments, resources and management attention to drive higher value solutions to enterprise, small and midsize business and public sector customers. HP believes that the exploration of alternatives for PSG will help the company accomplish its strategic goals and pursue profitable growth and enhanced shareholder value. A post-transaction HP would continue to help its customers manage the information explosion and address their most critical needs through a portfolio that spans printing, software, services, servers, storage and networking.

Not only that, they are exiting the tablet business too:

HP will discontinue operations for webOS devices, specifically the TouchPad and webOS phones. The devices have not met internal milestones and financial targets. HP will continue to explore options to optimize the value of webOS software going forward.

Doesn’t that make you feel good if you bought a TouchPad because of those Manny Pacqulao ads? Oh wait, almost nobody did. They were a victim of the iPad onslaught. You have to wonder what happens to WebOS in all of this.

It wasn’t all doom and gloom. They bought an English software company today:

HP (NYSE: HPQ) and Autonomy Corporation plc (LSE: AU. or AU.L) today announced the terms of a recommended transaction under which HP (through an indirect wholly-owned subsidiary, HP SPV) will acquire all of the outstanding shares of Autonomy for £25.50 ($42.11) per share in cash (the “Offer”). The transaction was unanimously approved by the boards of directors of both HP and Autonomy. The Autonomy board of directors also has unanimously recommended its shareholders accept the Offer.

And what does Autonomy do? From the press release:

Autonomy’s Intelligent Data Operating Layer (IDOL) platform allows computers to harness the richness of information, forming a conceptual and contextual understanding of any piece of electronic data, including unstructured information, such as text, email, web pages, voice and video. Autonomy’s software powers a full spectrum of mission-critical enterprise applications, including pan-enterprise search, customer interaction solutions, information governance, end-to-end eDiscovery, records management, archiving, business process management, web content management, web optimization, rich media management and video and audio analysis. Autonomy’s IDOL is the de-facto standard among more than 400 OEMs, supported by substantial intellectual property (IP), and Autonomy is a significant cloud player with over 30 petabytes of customer information under management.

Hmmmm…. Maybe that will bring HP back from the dead. Okay, that’s a bit harsh. But given that net revenue was only up 1% and sales of PCs were down 15%, you can see why HP is trying to rescue itself.

 

 

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