Versatile HP

HP is moving in many directions at once.  Now that it’s the second largest computer systems company, it requires growth in many directions to meet its goals.  We catch up on its hectic last few weeks:

 HP Focuses On The Consumer Market

In New York recently, the emphasis by HP was on the breadth of its new consumer offerings, with 158 products ranging from digital photography to digital home entertainment.  The goal here is simplicity, ease of use, and an enjoyable experience.  HP intends to keep its winning market share in the consumer imaging market – and that may get harder with more competitors, thinner margins, and the movement of Dell to a new printer partner (Lexmark), after HP turned them down last year for a private label deal.

HP will woo and keep customers loyal to HP not just with the dazzling range of products, but also by a strong emphasis on products that work well together, and by the provision of excellent service and support, such as HP Total Care, a comprehensive consumer program that includes 24/7 toll-free phone support in multiple languages and same-day local PC repair. 

HP will offer innovative new 8-ink color printers targeted at the photo market as well as devices designed to manage music, video, photos and other digital content.

HP plans to reach consumers through dedicated centers in existing retail chains such as Circuit City, J&R ComputerWorld, Micro Center, and CompUSA, with specially trained staff, workshops, and demonstrations.

Additional information, pricing and availability details are available http://www.hp.com/go/consumerstrategy or at http://www.hpshopping.com.

HP Enlarges Its Services Business

In a move that at once enlarges its services business and delights partner Microsoft, HP acquire a .NET consulting specialty firm, Atlanta-based Extreme Logic.  The Microsoft Gold Certified Partner specialized in .NET technology and business process consulting.  This will help HP extend its services organization as well as its Adaptive Enterprises strategy.

The acquisition of Extreme Logic will expand HP’s presence in a number of vertical markets as well as in the eastern and southern U.S.

HP At LinuxWorld

At LinuxWorld, HP came at the market from yet another direction, focusing on enterprise management and clustering technologies.  It also announced solutions for a number of vertical markets, and added to its partner offerings.  This includes Linux editions for OpenView Network Node Manager and GlancePlus, HP High Performance Clusters for Linux.  HP also announced new Linux-based partnerships with BEA, SAP, and Lotus.

HP And The Enterprise

In the meantime, financial and industry analysts noted that in quarterly results on HP today HP’s Enterprise Systems group, headed by Executive Vice President Peter Blackmore, Enterprise Systems is still in the red (by $70 million). Enterprise needs to achieve profits -- the fourth of the four groups of the post-merger HP/Compaq to achieve that goal, but Blackmore still has another quarter, according to an article in today’s Wall Street Journal, to make the numbers.  HP has been working hard to cut costs, further integrate its merged product line, and better leverage hardware and services.  With an emphasis on HP’s Adaptive Enterprise initiative and growing reports of customer satisfaction, we’d guess that this is only a matter of time.  

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