For years, HP represented the gold standard for technology companies. Everything from computing devices, servers, software, cloud and other services could be obtained through HP. So, when news of a split broke this past fall, many were unsure what the divide would mean.
Now that the dust has settled and the industry has been introduced to Hewlett Packard Enterprise and HP Inc., let’s take a look at the split, and what it means for your company.
The birth of HP Inc. and Hewlett Packard Enterprise
On Oct 6, HP announced the planned split, noting that two new organizations would be created: Hewlett Packard Enterprise and HP Inc.
“Strategic step provides each new company with the focus, financial resources and flexibility to adapt quickly to market and consumer dynamics while generating long-term value for shareholders,” HP stated.
On Nov. 1, the split was made official. The company formerly known as Hewlett-Packard “ceased to be,” as Re/Code’s Arik Hesseldahl put it, and HP Inc. and Hewlett Packard Enterprise were born.
A division of services
The main distinction between the two new organizations is the division of capabilities and services being provided by each company. HP’s full service portfolio remained intact, but was simply divided among the newly-formed HP Inc. and Hewlett-Packard Enterprise.
“HP today announced plans to separate into two new publicly traded Fortune 50 companies: one comprising HP’s market-leading enterprise technology infrastructure, software and services businesses, which will do business as Hewlett Packard Enterprise, and one that will comprise HP’s market-leading personal systems and printing businesses, which will do business as HP Inc. and retain the current logo,” HP stated in its Oct. 6 announcement.
SHI’s Nick Godwin broke it down even further, noting which services each company would be providing:
- HP Inc.: This organization would provide personal and printing services, including desktops, laptops, tablets, Chromebooks, workstations, displays and monitors, printers, peripherals and point-of-sale equipment.
- Hewlett-Packard Enterprise: This business would handle data center and infrastructure services, including servers, storage, networking, software, cloud and other offerings.
HP CEO Meg Whitman noted that this division of services has been beneficial for the company – HPE posted two consecutive quarters of revenue growth, something not seen with HP in years.
“The wisdom behind the split is becoming apparent. You can already start to feel it,” Whitman said, according to Re/Code. “The two companies are more nimble and more agile than they were combined Now they’re off and running.”
What does this mean for customers?
One of the biggest and most poignant questions to emerge here was simple:
“While the names might have changed, the products, services and delivery have not.”
“So what does that mean to customers?” Godwin inquired. “Anarchy in the streets? People running wild? Papers flying everywhere? The short answer: not much.”
Godwin pointed out that while the split likely means a whole host of internal changes for HP overall, “it will be business as usual” for customers.
Many experts echoed Godwin’s sentiments here: While the names might have changed, the products, services and delivery have not. It all depends on the client’s particular needs: For the most part, consumers will deal with HP Inc., while businesses will turn to Hewlett-Packard Enterprise.
“For the most part, HP was already organized by product lines and grouped into enterprise solutions and printing and personal systems, which helps ensure a smooth transition for both customers and partners,” Godwin wrote.
iT1 Source, an industry-leading technology solutions provider, is a top-tier partner of both Hewlett-Packard Enterprise as well as HP Inc. Whether your business is in need of desktops and printers or servers and data center solutions, iT1 Source can support your needs.
To find out more, contact iT1 Source today.