Hewlett Packard, well known as HP is all set to split into two by this year end. The Chief Executive Officer Meg Whitman announced this news to the world and added that she is foreseeing greater consolidation in the technology industry with this split.
Ms. Whiteman announced that HP will split into two – enterprise business and one that sells Printers and PCs on November 1st, 2015. She will retain the same chair for Enterprise division, but the one dealing with printers and PCs will be handed over to another executive.
After the split, the company’s enterprise division will focus on cloud computing, security, software and mobility and the other will as usual focus on PCs, printers, Tablets and other computing peripherals. HP has laid the groundwork for this split through a combination of research and development, partnerships and acquisitions.
Ms. Whitman revealed that her company was looking out for alternatives from the past two years to put HP in the best position to not only survive, but to thrive. And the business split seemed to be the best available option to her company at present.
In order to strengthen its enterprise business in coming years, HP made a series of deals, such as its $2.5 billion purchase of networking company Aruba Networks Inc, the acquisitions of security startup Voltage Security Inc and cloud startup Eucalyptus Inc. It also partnered with companies such as FireEye Inc, and Invested in data analysis specialist Horntonworks, Inc to storage startup Coho Data.
Let’s hope that the split and stepping into new business arena will work for HP financially.