HP is looking to sell off its PC business and is looking for a home for its WebOS operating system as it scuppers attempts to use it as the platform for a new range of tablet and smartphone devices.
The company is, however, strengthening its presence in the enterprise information management market, with a offer to buy infrastructure software supplier Autonomy.
These moves are part of the company transformation that was introduced in March and which are hoped with move HP into higher value, higher margin growth categories.
The result should strengthen the company’s focus on its strategic priorities of cloud, solutions and software with an emphasis on enterprise, commercial and government markets, while allowing it to increase investment in innovation to drive differentiation.
As part of the transformation, the HP board has authorised the exploration of strategic alternatives for the company’s Personal Systems Group. HP will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction.
The move is reminiscent of IBM’s shedding of its PC and notebook business to Lenovo.
In addition, HP will discontinue operations for webOS devices, specifically the TouchPad and webOS phones and these devices have not met internal milestones and financial targets. HP will continue to explore options to optimise the value of webOS software going forward.
In addition, HP announced the terms of a recommended transaction for all of the outstanding shares of Autonomy Corporation plc for £25.50 per share in cash.
Autonomy’s software powers a full spectrum of mission-critical enterprise applications, including pan-enterprise search, customer interaction solutions, information governance, end-to-end eDiscovery, records management, archiving, business process management, web content management, web optimisation, rich media management and video and audio analysis.
The addition of Autonomy will accelerate HP’s ability to deliver on its strategy to offer cloud-based solutions and software that best addresses the changing needs of businesses.
“We’re focused on improving performance across the business,” says Léo Apotheker, HP president and CEO. “HP is taking bold, transformative steps to position the company as a leader in the evolving information economy. Today’s announced plan will allow HP to drive creation of long-term shareholder value through a focus on fewer fronts, thereby improving its ability to execute, invest in innovation and drive a higher-margin business mix.”