Enterprise Emerges As HP’s Only Success

Computer technology firm Hewlett-Packard is in the midst of a few changes, including plans to split the company in half, resulting in an entirely separate, enterprise-focused division.

According to the latest numbers, as long as that enterprise division remains attached to HP, it seems to be the corporation’s only source of growth. Reports from MarketWatch on Friday (Aug. 21) said that Hewlett-Packard’s enterprise operations are among the only successful ventures for the company, a revelation following HP’s fiscal third quarter earnings report released last week.

Overall, HP saw a 13 percent earnings decline, and one of the only assets to see growth was the company’s X86 server unit, an enterprise-facing service.

“We are feeling really good about the enterprise server business,” said Meg Whitman, HP chief executive, during the earnings call.

Reports said that the company’s storage services also saw some growth. The figures, MarketWatch said, suggest that ahead of HP’s split from its enterprise services — slated to occur on Nov. 1 this year — the computer conglomerate’s consumer-facing business could be scrambling to find ways to make money.

HP’s earnings report highlighted a pessimistic outlook for its personal computer business, leading to a weakened guidance for the fourth quarter, reports said, adding that investors had already expected lackluster earnings figures.

“When HP Inc. is independent, you’re probably going to see them becoming more scrappy,” said IDC Analyst Jay Chou to the publication. “A lot of their products are just commodity-based PCs. There’s not a lot of room for extra revenue from things like services and so on.”

But HP Enterprise could fare better, considering the company’s latest numbers.

Analysts will be eyeing the company’s performance after the split, especially following news several weeks ago that Hewlett-Packard’s existing Enterprise Chief Bill Veghte has stepped down from the position.

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