Can Hewlett-Packard Succeed Split into Two Companies?

Meg Whitman is looking to reinvent Hewlett-Packard -- and it starts when the company officially splits down the middle on Sunday. ItEUs a strategy thatEUs a year in the making. The only question: Will it work?

Whitman and HPEUs board are betting it will. Hewlett Packard Enterprise Co. and HP Inc. will begin operating on November 1, marking a new era and what could be a risky strategy in an age where large IT companies are getting larger instead of smaller.

Hewlett Packard Enterprise will offer technology solutions aimed at helping enterprises optimize IT and build cloud and mobile solutions. This new brand will fold in HPEUs enterprise group, enterprise services, software and financial services businesses.

The new HP will target the consumer end of the business, operating HP's printing and personal systems businesses. HP will focus on new innovations like multi-function printing, Ink in the Office, graphics, commercial mobility, and services.

"This separation will enable us to accelerate the turnaround we began four years ago," said Whitman, chairman, president and CEO of HP, in a statement earlier this month. "As two independent, industry-leading companies, Hewlett Packard Enterprise and HP Inc. can drive more focused business strategies, innovation roadmaps, and go-to-market models. The separation will also present better choices for investors by creating two distinct and attractive investment profiles."

Blame It on the Board

We caught up with Rob Enderle, principal analyst at the Enderle Group, to get his thoughts on HPEUs EUreinventionEU strategy. HeEUs long been skeptical and remains so.

EUHP showcases what can happen when you have a board that is both in flux and lacks the core skills needed to understand the business they are husbanding,EU Enderle said. EURight after both AT&T and IBM showcased that telecom and high-tech don't mix, [HP] hired a telecom CEO to run the company and she failed.EU


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