Feeds

HP shuffles hardware execs

In search of profitability

  • alert
  • submit to reddit

High performance access to file storage

Hewlett-Packard today announced a sweeping set of management changes in its enterprise hardware group in a much-needed move to better align the company's overall strategy since it acquired Compaq one year ago.

HP has created a new business unit called Enterprise Storage and Servers that will be headed by Senior VP Scott Stallard. The company previously had separate groups for its Business Critical Systems, Industry Standard Servers and Network Storage products, but has now brought them together under one executive. Stallard will continue to report to Peter Blackmore who runs the Enterprise Systems Group at HP.

HP has also started a new Business Management and Operations group and appointed Howard Elias, former head of storage, to oversee this division.

Sadly, Mary McDowell, current head of Intel-based servers at HP, will take a short sabbatical, but she plans to return as a senior vice president, HP said. McDowell is always a pleasure to talk to, so we hope she does indeed come back.

All of these changes point to a recognition on HP's part that it needed to better align its product strategy.

"The various system groups at HP may have made nice with each other in public since the merger," said Gordon Haff, an analyst at Illuminata . "But time and time again, you see an Industry Standard Servers strategy and a Business Critical Systems strategy and you wonder if the merger was just a bad dream that never actually happened because the two strategies certainly appear to be from different companies."

A number of analysts charge that HP's different business groups gave mixed messages about future product directions. The old Compaq folks, for example, had a thriving Xeon server business and have been reluctant to even mention HP's high end Superdome system, which has been part of the Unix group. While Superdome is still only available with HP's own PA-RISC chips, it will soon ship with Intel's Itanium 2 processors, making it a natural extension of the Compaq group's Xeon servers.

So, all of the server groups within the new HP should have been hawking Superdome for some time.

"This reorg looks to be a determined attempt to create the sort of integrated product line that Compaq itself always lacked after its Digital and Tandem acquisitions," Haff said. "But common executives don't automatically create common cultures. That's going to be the tough one."

"If things still aren't fixed 6 or 12 months from now, maybe someone else will be going on sabbatical."

HP's hardware business has been losing money hand over fist, and the company is working to correct this through layoffs and other cost-cutting measures. This reorganization appears to be another attempt at bringing the hardware business back to profitability. ®

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Ex–Apple CEO John Sculley: Ousting Steve Jobs 'was a mistake'
Twenty-nine years later, post-Pepsi exec has flat-forehead moment
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.