10/5/2010 3:10:35 PM

IT Comms news: Why did HP hire their new CEO?

Following on from my recent post announcing HP's new CEO Leo Apotheker, I have decided to lend my thoughts towards the strategic decision behind this recent revelation.

 

According to HP's lead independent director, Robert Ryan, Leo Apotheker is a 'strategic thinker' with 'proven operational discipline' and is 'exactly what we were looking for in a new CEO'.

 

I think this signals a brave move into software, and the Cloud, in order for HP to realise future growth. Given Apotheker's background in software you can't help but admire HP's move and its underlying strategy to leverage their might, power, standing and dollars to dominate yet another IT channel. Whether this channel is developing their own applications, or partnering with other vendors, only time will tell.

 

Gartner's Managing VP, Martin Reynolds, blogged that HP's software business has the greatest potential for growth. Although HP has bought a portfolio of cloud technologies, the present drive is to cut the costs of computing, rather than new services that the cloud could bring about.

 

Apotheker's appointment is certainly a departure for HP, something that couldn't have been predicted, but it will undoubtedly lead to other vendors re-examining their own strategies for competing with HP.

 

Damian Hicklin

IT & Communications Divisional Manager

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