With
the rise of the mobile generation several of the well established
technology giants have seen their once powerful empires in a downward
spiral. Much of that spiral can be attributed to stubbornness about
sticking with the way they have been doing business for decades. Even
the companies that thought they were doing a good job at keeping up
with current trends have seen a down turn.
"There's
a significant transformation going on in that industry, and maybe now
HP can make its move," said Forrester tech analyst Peter Burris,
one of several analysts who say the iconic tech giant will need to
get better at building and selling mobile gadgets if it wants the new
spinoff to succeed.
This
caused several of these once giants of the industry scrambling to
right their ships. Some of the strategies that companies have been
trying over the last few years are changing
CEOs,
re-organization,
privatization
and even selling
off part of the business. The latest of the companies to join the
trend is Hewlett-Packard as they get set to split
the company
into two businesses.
"The
decision to separate into two market-leading companies underscores
our commitment to the turnaround plan. It will provide each new
company with the independence, focus, financial resources, and
flexibility they need to adapt quickly to market and customer
dynamics, while generating long-term value for shareholders,"
said Meg Whitman, HP chief executive officer, in a press release.
Current
Hewlett-Packard CEO Meg Whitman will retain control of the business
software & cloud storage parts of the business. The part of the
business will be renamed Hewlett-Packard Enterprises. She will then
split the PC &mobile devices along with printing into a second
business that current Vice President Dion Weisler will become CEO.
Mr. Weisler's new business will be called HP Inc.
Hewlett-Packard
hired Ms.
Whitman
in September of 2011 to resurrect the struggling company. Before Ms.
Whitman was hired by Hewlett-Packard she had proven herself as
President & CEO of Ebay where she over saw 10 years of growth
before leaving in 2008 to run, a failed campaign, for governor of
California.
Mr.
Weisler
was hired by Hewlett-Packard in December of 2011 as a Vice President.
Before coming to HP, Mr. Weisler spent almost 5 years with Levono
where he was both a Vice President and COO.
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