This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

HP's Restructuring: What to Expect

PALO ALTO, Calif. ( TheStreet) -- The stakes are high for HP (HPQ - Get Report) CEO Leo Apotheker, who will reveal his long-term strategy for the tech giant next week. With HP's shares down almost 19% over the last 12 months, the new CEO must conjure up a road map capable of lifting the company's stock.

Up first, predict analysts: software as the next big item on Apotheker's to-do list. Software sales accounted for just 2% of HP's overall first-quarter revenue, compared to 25% at rival IBM, during its most recent quarterly report.

"At this point, HP's largest challenges relate to enterprise software, a point underlined by Apotheker's original hiring and the company's ongoing tussles with Oracle (ORCL - Get Report)," said Charles King, principal analyst at Pund-IT research, in an email to TheStreet. "Despite the financial benefits HP enjoyed under Mark Hurd, he left the company high and dry so far as business software assets are concerned, so on March 14, I would expect Apotheker to outline a workable plan for repairing those shortcomings."

More specifically, King said that Apotheker may unveil new solutions involving integrated hardware and software. The tech giant has already made moves into this space, recently ramping up its partnership with Microsoft (MSFT - Get Report) to launch pre-packaged bundles of hardware and software aimed at corporate customers looking to analyze their data.

Apotheker has also promised a major focus on cloud computing and connectivity.

"I believe that Apotheker has a software vision that will circle around cloud," said Jessica Breen, an analyst at Technology Business Research (TBR), in an email to TheStreet. "I expect that there will be a heavy emphasis on refreshing the software after lackluster performance."

There has also been speculation that Apotheker will bolster HP's OpenView systems management product, to better compete with IBM's Tivoli offering.



1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
HPQ $33.41 2.71%
IBM $166.16 3.42%
MSFT $42.90 3.10%
ORCL $43.32 0.74%
AAPL $127.60 2.28%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs