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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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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


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