PALO ALTO, Calif. ( TheStreet) -- HP's (HPQ - Get Report) new CEO Léo Apotheker has vowed to make the tech giant's software business a top priority, and also believes that the computer and server maker is currently undervalued.
"HP is grounded in the hardware business," he said during a conference call with analysts on Friday. "I bring to HP an asset that that HP is less grounded in, and that's software."
|Leo Apotheker, HP's new CEO|
"I believe, and the management believe, that HP should be more valuable than the sum of its parts," he added. "We all believe that software is the glue to make that happen."The former SAP CEO would not reveal specific details of his software strategy, but he is widely expected to bolster HP's OpenView systems management product against rival IBM's (IBM) Tivoli offering. HP has already lauded Apotheker's software track record. In a statement released after the market close on Thursday, HP explained that he helped lead SAP to 18 consecutive quarters of double-digit software revenue growth. Apotheker, however, now faces the challenge of inspiring HP investors. HP's stock has fallen more than 20% this year, thanks partly to the shock departure of former CEO Mark Hurd following an expenses scandal. Hurd, who was credited with turning HP's fortunes around, was something of a Wall Street darling, and earned plaudits for his tight expense control. At least initially, investors have been largely underwhelmed by HP's new CEO hire. The tech bellwether's stock was down $1.04, or 2.47%, to $41.03 shortly after market open, despite a modest gain in tech stocks that saw the Nasdaq rise 0.63%. "I happen to believe that