August 18, 2011 HP, the largest PC maker, announced that it was going to discontinue WebOS, TouchPad tablet, and spin off the PC unit.
Competition from various areas have made HP do a double take on the whole computer hardware industry. Instead they will concentrate on software and services.
Effect on Windows 8
Shedding the PC business may make an impact on Microsoft. Instead of working with a well-known partner hand in hand to produce the hardware needed to run the next operating system, Microsoft will have to adjust its sights. Microsoft must pursue a new hardware strategy that will enable Windows 8 to hit the ground running and not stumble. While there are other PC makers available the Microsoft will work with, HP was one of its tried and true partners.
There are two ways to look at HP’s moves. PC and Web OS operations haven’t panned out as planned so before they become an anchor for the company, so they want to break off. On the other side, HP’s business has struggled and it has disappointed Wall Street since the end of Mark Hurd’s tenure. In other words, their business model is not successful any longer.
Autonomy the Information Business
Instead, HP will move into the information management business. It recently acquired Autonomy, which was founded in 1996. It is a global leader in infrastructure software for the enterprise with a customer base of more than 25,000 global companies, law firms and public sector agencies, and approximately 2,700 employees worldwide. Autonomy’s specialty is helping companies analyze unstructured data that is increasingly flooding their systems.
Microsoft’s New Champion
Well, so much for the HP PC business. Now who will take its place? Here are some potential new number one partners.
But overall, is this another indication that the PC market is dying? Or is this just a fluke because of the problems HP was having?