HP unifies server business

Hewlett-Packard has merged its Enterprise Systems, and Software and Servives divisions in an effort to unify its development and delivery of corporate server systems. "The merger supports our belief that IT solutions must have equally strong components of hardware, software and services," said Ann Livermore, HP VP and general manager of the merged operation. The new group will emply 44,000 people and is worth $15 billion, according to HP head Lew Platt. No job cuts will be made as a result of the merger -- HP has, after all, been shedding plenty already as HP struggles to cope with financial troubles engendered by the Asian economic crisis. Combining the company's server sales operation with the group that sells solutions and services based upon those same servers makes sense, said analysts. It allows HP to focus its efforts on promoting high-marging services business by viewing the hardware as just one component in the solution. Full details of the new organisations structure will be released within the next few weeks, said Livermore. ® Click for more stories