The New HP is Ready
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Just two business days after the hand-wringing legal completion of its merger with Compaq Computer Corp., the new HP -- which now trades as
-- Tuesday emerged before the world with a new mantra, "We are ready."
"After eight months and millions of hours of integration planning by our teams, today we are ready to do business as the new HP," said Chairman and Chief Executive Officer Carly Fiorina. "Our management teams are in place in all 160 countries in which we operate. We have three year-product roadmaps for our customers in place for all of our products. More than 80,000 sales, service and support professionals are ready to serve customers. Our Web sites and email systems are combined. Our online store is open for business in the United States, and our joint Web site launched today in six languages and nine countries. All of it under the banner of the new HP. It is a proud and exciting day for all of us."
Transitioning into his new role as president of the combined company, Michael Capellas added, "Current economic realities are driving the information technology market to HP's strengths. Customers want fewer strategic partners, with global reach and scale. They want complete, end-to-end solutions based on open, industry-standard architectures. And they want access to the best engineering and most innovative technologies -- a hallmark of HP and a strong differentiator. While execution is essential and we have a lot to prove, we are confident in our ability to provide increased opportunity and value to our employees, customers, shareowners and partners. The new HP has what it takes for market leadership."
Fiorina noted that the companies have been planning the integration since before the merger was officially announced 8 months ago, adding that its has already named three levels of management and is in the process of naming a fourth.
The named management teams include regional and country managers, as well as the top 100 corporate account managers. Fiorina also said HP has completed customer support and migration plans, in addition to the three-year product roadmaps, and has a go-to-market model for each customer segment -- consumers, small- and medium-sized businesses, and large enterprises. She said the company has also identified financial targets and established accountability for those targets measured according to how customers define its success.
The combined company is broken into four core business units:
- Enterprise Systems Group, led by Executive Vice President Peter Blackmore. HP said ESG provides the key technology assets of enterprise IT infrastructure, including enterprise storage, servers, management software and a variety of solutions.
- HP Services, led by Executive Vice President Ann Livermore. HPS, comprised of 65,000 professionals worldwide, is the industry's third largest IT services organization.
- Imaging and Printing Group, led by Executive Vice President Vyomesh Joshi. IPG provides printing and imaging solutions for the consumer and business markets, and is expanding into the digital publishing market.
- Personal Systems Group, led by Executive Vice President Duane Zitzner. PSG oversees HP's business and consumer notebooks and desktops, workstations, thin clients, handhelds and Internet appliances, and is also responsible for emerging technology businesses in areas like embedded software, embedded computing, home networking solutions and personal storage.
The company has also instituted a Worldwide Operations unit to provide support and strategic direction for the product business groups. The unit, led by Executive Vice President Mike Winkler, is responsible for managing horizontal processes that extend across the business groups, including supply chain, e-business, customer operations, total customer experience and quality, global alliances, finance and information technology.
"While size, breadth and market leadership are important, HP is also strong where it matters most, with our customers," Capellas said. "In the three months leading up to the merger -- in what continued to be a challenging IT spending environment and despite the uncertainty surrounding the merger -- our separate account teams booked more than $5 billion in combined new business in the financial services, manufacturing, energy and communications industries.. We have not backed off an inch in our focus on customers."
Capellas also promised to protect customer investments in both HP and Compaq technology.
"We recognize that customers have made significant investments in HP and Compaq technology," he said. "We intend to protect those investments with detailed transition and migration plans."
In the server space, the company said HP will become the master brand. It will retain its commitment to the Intel Itanium Processor Family, and will offer Itanium-based servers from the low end to the high end of the product line. The company said that in the industry-standard server category, the Compaq ProLiant servers will become HP's IA-32 server offering, along with the ProLiant blade server architecture for the data center and HP's Powerbar blade family, optimized for the telecommunications market.
In RISC-based servers, the company will continue with previously published roadmaps for both PA-RISC and AlphaServer systems. HP will aim the PA-RISC servers at new business opportunities in addition to the installed base, while the AlphaServers will be primarily focused on the installed base and high-performance technical computing.
Compaq's fault-tolerant NonStop server family will be rebranded the HP NonStop Server.
In the UNIX market, Capellas said HP will retain the HP-UX platform, but will integrate advanced features, like clustering and file systems, from Compaq's Tru64 UNIX. The company also promised to deliver on its announced OpenVMS roadmap, including the port to Itanium.
In the storage arena, the company will adopt StorageWorks as the product name for enterprise storage products and storage solutions, while OpenView will be the name for its software storage, and it will adopt ENSA (enterprise network storage architecture) for its storage architecture.
In software, the company will focus its investments in OpenView management solutions, the Utility Data Center (UDC), Opencall telco solutions and J2EE and .NET middleware stacks. The company said it will adopt the OpenView name for all appropriate management software and will integrate TeMIP into the OpenView product family. HP said its OpenView product line will focus on integrated management solutions and extended management reach for both network and IP devices and Web services management. Meanwhile it will continue to invest in UDC software by leveraging Compaq Insight Manager and Adaptive Infrastructure offerings, in addition to Toptools.
In the telco software market, the company said it will consolidate both HP's and Compaq's offerings into the Opencall product family.
As for personal systems, the company will continue to sell both HP and Compaq-branded consumer PCs and notebooks, but will drop the HP brand for the commercial categories. All other products, solutions and services will carry only the HP brand.
Finally, in imaging and printing, the company will combine HP and Compaq digital projectors into a single product line under the HP brand within the next 12 months.