HP Does An About Face… Won’t Sell It’s PC Division

The new regime over at HP is clearly in charge as it’s reversed one of the big decisions of the old regime. Apparently the PC division which was up for sale is now no longer on the chopping block:

“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG,” Meg Whitman, HP’s CEO and president, wrote in an Oct. 27 statement. “It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees.”

An HP “data-driven evaluation” revealed PSG as not only deeply baked into all of HP’s lines of business (including supply chain, IT and procurement), but also a significant contributor to overall brand value—too valuable, apparently, to divest and recreate as a standalone company, according to the tech giant.

That’s a plot twist. I have heard from some of my enterprise customers that they were unlikely to consider HP for anything else if their PC division was axed. So you have to wonder if those sorts of sentiments factored into the decision making process of Meg Whitman. One question I do have: What does that mean for WebOS? Is it still dead or could it make a comeback?

In any case, now that HP is keeping the PC business, does that change your opinion of HP? Post your comments below.

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