HP seems to be shying away from Microsoft and hanging out with Google instead

Hewlett-Packard's (HP) CEO said that former partners like Microsoft and Intel have now become its competition, and HP has been buddying up with companies like Google instead.

HP CEO Meg Whitman used to tout the importance of HP's partnership with Microsoft. In fact, she said last year that HP had to "stick with" Windows 8 and that she was "a believer" in the new operating system.

But her tune has changed. Ever since Microsoft starting making its own hardware (the Surface tablet) and recently bought Nokia's devices and services division, HP is shying away from the Windows maker. And Microsoft isn't the only one -- Whitman said Intel is now a partner-gone-competition as well with its cloud computing and computer security solutions for the enterprise.

HP CEO Meg Whitman

"HP’s traditional highly profitable markets face significant disruption," said Whitman "Wintel devices are being challenged by ARM-based devices. ...  We are seeing profound changes in the competitive landscape. ... Current partners like Intel and Microsoft are turning from partners to outright competitors."

According to Whitman, the new game plan is "multiple operating systems, multiple architectures and multiple form factors," adding that HP is "moving quickly to produce the devices that customers want."

HP is in a financial slump when it comes to its PC business, which saw a 20 percent slip in revenue last May. In July, Gartner found that Lenovo passed HP as the top worldwide PC vendor for Q2 2013 with 12,677,265 shipments. HP came in second place with 12,402,887 for the quarter. 

HP is looking for new opportunities to climb back to the top, and partnering with Google has been one strategy. In fact, HP just announced its new Chromebook 11 yesterday, which is a $279 laptop as part of Google's Chromebook series. 

Source: Business Insider

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