HP will diverge into two companies HP PC/Printers and HP Enterprise

18.11.2014 Nicky Herak

The company Hewlett Packard has made plans to diverge into two companies on Monday, as was made evident in a report in The Wall Street Journal. One of HP’s companies will be focused on enterprise computing and services while the other will build and sell PCs and printers.

CEO Meg Whitman will lead the business-focused division of HP (it’s not clear who gets to keep the HP brand) and will be chairman of the PC/printer company, which will be led by Dion Weisler. The specifics are still murky as to how this will all be handled, but the Wall Street Journal made it clear that Hewlett Packard plans to announce the move soon.

Hewlett Packard is perhaps the grandfather of Silicon Valley companies, with a rich background of computing innovations and leadership in the field since it was founded way back in 1939.

Despite the fact that it has taken $112 billion in revenue in 2013 it has really seen a struggle over the last ten years with the slow down of the PC market, the rise of mobile devices, and the shift of businesses to cloud computing. A long string of absurd leadership mishaps hasn’t helped much in remedying this.

The idea of spinning off the PC unit into a seperate enterprise is not a new one — in fact Leo Apotheker, who preceded Meg Whitman as HP’s CEO, considered that option during his time at the helm. Whitman opted not to pursue that course when she assumed the top job three years in the past.

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