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From glass house, HP stones Dell's "tough road" to privatization

In the wake of Dell, Inc. (DELL) founder Michael Dell confirming rumored plans that the computer giant was going private, embattled rival Hewlett-Packard Comp. (HPQ) was swift to blast the move.

In a press release HP sniped:

Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers... [Dell's] ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb.

The company also took aim at Dell's "significant debt load" and suggests that it is eager to execute "plans to take full advantage" to poach Dell customers "eager to explore alternatives."

The statement seems a bit comedic coming from HP, whose shares have fallen 66 percent in the past three years.  HP has floundered in the mobile era, eventually abandoning ship on smartphone efforts.  It's fired or forced out two chief executives in the past three years, and its most recent executive, former eBay, Inc. (EBAY) CEO Meg Whitman has cut the company's outlook three times already, since she took over in Sept. 2011.

The statements are not HP's first flamboyant comments in recent months.  Since Ms. Whitman took over the company seems to be relishing its role as a melodramatic attention-seeker.  Most recently it engaged in a war of press-releases with former Autonomy CEO Mike Lynch, whom HP is alleging committed financial fraud.

Expect more groan worthy releases to land in months to come, as HP continues to lash about.

Source: HP



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In opinion HP is the worst...
By scrapsma54 on 2/6/2013 4:30:09 PM , Rating: 5
In fact, Hp has no quality products and is an inferior product next to Acer. They all die within a span of the second to 3rd year and have too many flaws that would make a Customer service rep weep. Dell BEATS out HP any day in quality. Not out of favoritism, but out of experience dell has the best in mass deployments on the consumer market. It is sad that HP hasn't dropped consumer market yet, because their reputation on the client side is just horrible.




RE: In opinion HP is the worst...
By Ammohunt on 2/6/2013 4:35:12 PM , Rating: 5
And being private in my opinion will reduce the regulatory burden placed on it by government allowing higher margins and eventual better products. Its win win for consumers HP is just bitter apples.


RE: In opinion HP is the worst...
By headbox on 2/6/2013 10:38:40 PM , Rating: 3
There's a massive HP campus in my city that went from 7k employees to 2k employees in a short amount of time. I don't take anything HP says seriously.


By Ammohunt on 2/7/2013 11:56:33 AM , Rating: 3
They are notoriously bad employers the campus where they developed the itanic is close to where i live at one point a recruiter was trying to recruit me for a position there. The top compensation package they were offering was less than half what the market was paying. They are a company so far out of touch its pathetic.


RE: In opinion HP is the worst...
By maugrimtr on 2/11/2013 10:10:16 AM , Rating: 2
The impact on margins will be negligible. Going private simply frees the company from shareholders who are being too volatile in their pricing of its stock and expecting miracles to occur in the short term. It will allow them to make dramatic changes without worrying about all that craziness.

Internally, Dell remains regulated by the government like every other corporation. They will also retain their current reporting needs for internal use (they will want to know if they are making a profit I assume) and to prepare for a future return to the market.

This is far from your attempt to link going private to meaning less regulation and some mythical cost saving. Those sort of costs are significant only to small companies (and yes, small companies should be lightly regulated where it makes sense).


RE: In opinion HP is the worst...
By xti on 2/6/2013 4:35:27 PM , Rating: 2
all die?


RE: In opinion HP is the worst...
By GotThumbs on 2/6/2013 4:44:44 PM , Rating: 3
Maybe for you, but I know friends who have had great reliability with HP laptops.

Regardless of the brand, its always a pain when you do have to deal with failures.

That's why I build my own desktops. the small ITX boards do a great job and I can replace any failed component if needed. Fortunately I've only had to deal with a bad power-supply or hard-drive. Easily resolved and back up and running.

Best wishes on your future purchases,


RE: In opinion HP is the worst...
By kleinma on 2/6/2013 4:53:56 PM , Rating: 2
HP and Dell just buy their crap from China, assemble it in China, and put their names on it. They don't actually manufactuer the system boards, screens, or any of the actual stuff in the system that people will or won't have problems with. So it comes down to how the company handles your problem when you do have one. HP and Dell are both horrible at this. HORRIBLE. Their customer service is some of the worst in any industry. Unless you like talking to indians named Bob who you can't understand, that read off a script, which results in hours of frustration because they built crap in the first place, loaded it with crap before they ever shipped it, and then run you around in circles when something goes wrong that they knew would go wrong in the first place.


RE: In opinion HP is the worst...
By chµck on 2/6/2013 8:35:27 PM , Rating: 2
Yep, there are only like 5 pc OEMs: Clevo, Compal, MSI, ASUS, ...


RE: In opinion HP is the worst...
By inperfectdarkness on 2/7/2013 1:37:57 AM , Rating: 2
I'll take MSI. Mine's been ticking along nicely since 2010 without issues--and doing a bang-up job on 1080p gaming. My Sager (Clevo) bit the dust after less than 2 years. To be fair, it was the sh**ty Nvidia GPU that caused it (and causing me to foreswear any more Nvidia offerings)--but the point remains.

Even with the "cheap feel" of MSI's all-plastic construction, I can't beat the performance for the price. After M.I.R. I paid $1350 for an absolute top-of-the-line 15" laptop. Dell, HP, Apple, etc....won't let you touch that for less than $2,000.


RE: In opinion HP is the worst...
By Scootie on 2/7/2013 2:41:51 AM , Rating: 3
I was selling MSI laptops for a few years in small town of Romania, sometimes when we get good offers still sell. The thing about MSI laptops is that while having a cheap feel to them most of the problems were plastic related and not hardware, they tended to broke but while under warranty they were ALWAYS changed.
That motherboard that they pack in their laptops are incredible, out of 1000 pieces I've seen/sold maybe only 1 or 2 went dead with the chipset. Meanwhile, my colegue here who specialized in laptop repairs has on daily basis Acer, HP and Sony Vaio piled up for various problems.


By majorpain on 2/7/2013 10:13:33 AM , Rating: 2
Well said. People forget or really don't wanna know that almost everything is build in China and companies just brand that crap with their logos.
From my experience, Dell is a bunch of crap, specially notebooks; has for HP, they have the honour of having the worst notebooks I’ve ever touched in my life. Still have a 6 years old Asus W2J notebook with 17" screen, never had any issues with its hardware, i just keep using Linux on it to enjoy it a few more years.


RE: In opinion HP is the worst...
By scrapsma54 on 2/6/2013 4:55:40 PM , Rating: 2
The mantra applies that if you know what you are doing with a pc and know how to take care of it it will last. so I wont argue that. I will say that their PC's have been known to have poor solder quality. It is almost guaranteed to fail and with laptops you really cannot do much with their systems when repair is involved. Just chucking the system into an e-waste bin is the only solution or just parting them out. It used to be that laptops are a worthy investment no matter how old the system. This is no longer the case.


By scrapsma54 on 2/6/2013 5:06:40 PM , Rating: 4
And lets not forget its sheer neglect of acquiring palm's web os.


RE: In opinion HP is the worst...
By bsd228 on 2/6/2013 6:42:16 PM , Rating: 2
> That's why I build my own desktops. the small ITX boards do a great job and I can replace any failed component if needed. Fortunately I've only had to deal with a bad power-supply or hard-drive. Easily resolved and back up and running.

Can you build 5000 identical (same bios, gfx, etc) over the next 18 months? And can you manage them without a KVM hookup?

It's easy to build 1 or 10 really nice desktop or server PCs. It's a very different problem when you need them on a larger scale, and cannot afford the time to deal with product variation. That's where Dell and HP make a lot of their money.


RE: In opinion HP is the worst...
By spread on 2/6/2013 7:51:25 PM , Rating: 2
quote:
I know friends who have had great reliability with HP laptops.


I'm sure there's dozens of Ford Pintos that ran great back in the day but overall it was a horrible car.


RE: In opinion HP is the worst...
By Wolfpup on 2/7/2013 10:39:03 AM , Rating: 2
HP's one of the most reliable brands, is statistically more reliable than Acer, actually covers a wide swath of system configurations, the way Dell used to, and is quite competitive.


By scrapsma54 on 2/7/2013 10:46:12 AM , Rating: 3
False. Asus, MSI, Samsung, Lenovo, Apple, and Dell are the most reliable. HP has fallen far from the days after they butchered the Voodoo brand of PC.


By nikon133 on 2/7/2013 4:01:48 PM , Rating: 2
That is nonsense.

Granted we have focused on EliteBooks for us and our customers, but we are yet to see one that died before being retired of age. Some of them are 5 years old and still in use.


dying
By Argon18 on 2/6/2013 4:44:48 PM , Rating: 2
HP has been dying for the past decade. The CEO's office has been a revolving door, they've done one massive merger after another, most of them dramatic failures. They have only three markets where they are competitive: printers. commodity x86 servers. and mid-level SAN storage.

Printers has always been highly profitable for HP, mostly via the sale of ink, paper, and accessories.

They got a winning commodity x86 server via the Compaq merger, the Proliant line. (HP's own x86 servers pre-compaq merger were garbage). But lately the Proliant line seems confused, with too many offerings, and bizarre changed with the latest G8 models.

They got a winning mid-level SAN storage solution, the EVA, from the DEC StorageWorks line. DEC/Compaq merger and the Compaq/HP merger.

Those are their three money makers. Everything else is either a small niche product, or a complete turd.

Even their once mighty Enterprise class servers have fallen way behind. They killed off the DEC Alpha, a far superior technology, in favor of the Itanium turd. Now that they've standardized all their enterprise platforms - HP-UX, OpenVMS, and NonStop - on the failboat Itanic, they're losing major ground to competitor IBM.

The IBM POWER6 and POWER7 chips absolutely kill Itanium in terms of performance. And AIX is a better OS. Itanium went 3 years. THREE YEARS without a new chip model. HP is the only Itanium customer these days, so intel has no incentive to put significant development effort into it.

How many more years of failure, before everyone yells "Abandon Ship"??




RE: dying
By Flunk on 2/6/2013 4:48:38 PM , Rating: 2
They also totally discontinued their high-end consumer PC line (Envy), renamed their mid-level line (Pavilion) to Envy and now don't offer anything above a mid-level system.

I was looking at buying an HP Envy 15 a few months ago but they discontinued the model and I had to buy a Dell instead.


RE: dying
By rdhood on 2/6/2013 5:38:30 PM , Rating: 2
argon18 is correct, and he only mentions some of the computer space. I could mention that nearly every venture into the consumer electronics area has failed. TVs, digital entertainment centers, phones, slates, cameras, you name it. All failed.

I could also mention how HP has laid of hundreds of thousands of employees in the meantime.

Or, I could mention how HP killed massive projects in Linux and Windows in order to focus on the Itanium turd, killing the only R&D that they had going that would save them.

yes, HP has been dying for many years.


RE: dying
By mevans336 on 2/6/2013 6:44:08 PM , Rating: 2
You're exactly right re: their servers. I bought a $10k HP server about 4 years ago and that thing was a mess. I was forced to buy it rather than a Dell because the customer was a California native and insisted on HP. The same server from Dell would have been about $7k and had much better management capabilities (DRAC vs ILO).

Even their Bladecenter is far out-shined by IBM's offering.

I don't do much with non DASD storage, but our SAN guy despises their SAN line too. He's a NetApp guy, but said HP would be his last choice of SAN from an OEM, behind IBM and even Dell.


RE: dying
By Nutzo on 2/7/2013 1:23:10 PM , Rating: 2
Used to really like Compaq servers, but they went down hill after HP bought them.

My current company uses Dell, and I wouldn't recomend anything else, especially when it comes to servers.
Other than a couple drives, I've had no problems with all the Dell servers we have.
I've finally had to started to replacing some of them, not due to hardware problems, but due the servers being so old the CPU's don't fully support 64 bit :)

Same with the Desktops/Laptops (we use the business line). I have old P4 systems that still work fine (other than being slow) after almost 10 years of use. Only problem is the old Maxtor drives are starting to die after so many years.


RE: dying
By spread on 2/6/2013 7:55:49 PM , Rating: 3
quote:
they've done one massive merger after another, most of them dramatic failures


So what you're saying is that HP is the turd burglar of the corporate world. Merging with all the other turds and holding all of that under one roof.


RE: dying
By inperfectdarkness on 2/7/2013 1:41:25 AM , Rating: 2
Redirection & subterfuge. Apple does it much better though (or at least Jobs did). Reminds me of this:

https://www.youtube.com/watch?v=rw2nkoGLhrE


Short Sighted
By othercents on 2/6/2013 4:27:50 PM , Rating: 2
At this point HP could undercut the Michael Dell bid to take DELL private and purchase them out from under him. This would both propel their PC market share and take a competitor off the market.




RE: Short Sighted
By Flunk on 2/6/2013 4:46:29 PM , Rating: 2
I don't think anyone is that hot to own such an unprofitable margin these days. Besides, who's to say Acer, Samsung, ASUS or Lenovo wouldn't end up taking over from Dell.


RE: Short Sighted
By ritualm on 2/7/2013 12:14:21 AM , Rating: 2
quote:
At this point HP could undercut the Michael Dell bid to take DELL private and purchase them out from under him. This would both propel their PC market share and take a competitor off the market.

Man, I can smell the e-fumes of anti-competition straight from the network closet!

Fat chance of HP swallowing Dell whole, but when it does, I will feel a lot more comfortable buying my IT and networking gear from the Chinese PLA than anything stateside.


sad
By sprockkets on 2/6/2013 4:34:09 PM , Rating: 2
About the only think keeping hp alive is their blood sucking printers. Each office I go to resorts to using 3rd party toner since hp's is so expensive.

Kyocera's printers are such a well kept secret, sadly. They cost so little to run compared to everyone else.




RE: sad
By Nutzo on 2/7/2013 1:26:11 PM , Rating: 2
Overall HP still makes the best printers. I have alot of old HP printers (4000's, and 8100's) that still work fine after 100-200K pages, with very little maintenance.


Meanwhile...
By Donkey2008 on 2/8/2013 2:29:21 AM , Rating: 2
...Lenovo continues to gooble up the enterprise market while Dell and HP flop around like dead fish. Maybe they can merge and call themselves HELP.

I always liked Dell business class laptops and HP made some fairly good home laptops a few years ago too (HDMI instead of VomitPort, yea!)...

But how times have changed. I now sit in front of a docked LenoGo W520 everyday and I am actually quite satisfied with it. It isn't as fancy as a titanium Latitude, but it is reliable and a quality product. Lenovo has the right formula and their RMA process is second to none. No wonder they are sinking the American companies :-(




You can always tell...
By Beenthere on 2/6/13, Rating: -1
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997














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