|
With its own software business still small, HP will have to resort to acquisitions if it wants to build serious scale, the same way it bought Electronic Data Systems in 2008 to double its services business. Speculation is mounting that it might attempt to buy SAP. HP will face stiff competition from other tech heavyweights looking to position themselves as the leading one-stop shop for information technology. One is Oracle Corp., a former ally that jumped into the hardware business against HP this year with the acquisition of Sun Microsystems. The competition with Oracle is all the more bitter because the company's CEO, Larry Ellison, decided to snap up Hurd last month to serve as Oracle's president. HP sued to try keeping him out of the job, but has settled the case. HP, based in Palo Alto, Calif., said Thursday that it will also be bringing in an Oracle alumnus to help lead the company. Venture capitalist Ray Lane, who was ejected from Oracle's No. 2 job by Ellison a decade ago, is joining HP as nonexecutive chairman. The escalating rivalry could lead to bidding wars between HP and Oracle for smaller software players as both companies bulk up, said Caris & Co. analyst Curtis Shauger. "The gloves are off," he said. IBM is another tech powerhouse making software acquisitions. Just last week, the company agreed to pay $1.7 billion for Netezza Corp., a company that helps businesses sort through data on corporate servers. IBM says it has made more than $12 billion worth of acquisitions in just that particular niche of the software industry over the past few years. Apotheker is the third HP CEO in a row to be recruited from outside the company. Carly Fiorina came from Lucent, an AT&T spinoff. Hurd came from NCR Corp. The lack of promotions for top internal managers could encourage them to look for opportunities elsewhere. Todd Bradley, whom analysts pegged as one of the leading internal prospects, would be a heavy loss, said Gleacher & Co. analyst Brian Marshall. Bradley took over the company's PC business when it was in tatters and has managed to boost its margins. He upgraded HP's image with the celebrity-studded "The Computer is Personal Again" ad campaign soon after he was hired and cut costs. Within three years, HP outgunned Dell Inc. to snag the title of the world's No. 1 PC maker. "He's done a great job. He definitely was on the short list," Marshall said. Apotheker struck a conciliatory tone toward his new colleagues on Friday. "The first thing I did when I joined this company was to reach out to each member of the senior executive team," he said. "We have talked. These are great professionals. They have HP in their blood and I am sure that as a team we will be working together for many years and do a great job."
[Associated
Press;
Copyright 2010 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor