Hewlett
Seeking greater agility in the face of substantial industry changes, Hewlett-Packard is on the eve of a sweeping reorganization, according to people familiar with the matter.
The individuals, who requested anonymity to preserve relations with HP, said a split of the company into two separate entities could be announced as early as Monday. One company, they said, would consist of HP's business in personal computers and printers, while the other would own the enterprise-focused businesses of computer servers, data storage devices, networking and software, as well as business services.
A sell-off of the PC business, possibly including printing, was previously considered and rejected by HP's chief executive, Meg Whitman. She argued that owning that much computer manufacturing, which made HP the world's largest buyer of computer semiconductors, gave HP valuable pricing power in all its markets.
In a world increasingly dominated by mobile computers like smartphones and tablets and by networks of data centers with sometimes a million servers, the connection between the two businesses became increasingly tenuous. Rather than pricing power, Ms. Whitman appears to have decided, HP needs the greater speed and agility that might come with two smaller and more focused companies.
News of the impending split, first reported by The Wall Street Journal on Sunday, is part of a series of moves by various technology giants seeking to find a place in a new business landscape. In a little over a year, Microsoft has bought Nokia's mobile phone business and seen the retirement of Steven A. Ballmer, its longtime chief executive. Dell, HP's chief rival in personal computers, has been taken private as part of a reorganization. HP has also been in talks to merge with EMC, a giant in the data storage business.
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