Mr. Apotheker made clear that he was departing from Mr. Hurd’s legacy of cost-cutting to invest more

Mr. Apotheker made clear that he was departing from Mr. Hurd’s legacy of cost-cutting to invest more in H.P.’s once-celebrated research and development programs. Although he did not offer shop online 2011 specifics, he said that financing for H.P.’s lab would increase faster than the company’s overall growth in revenue this year and focus on marketable innovations. Software, which has much higher margins of 17.6 percent, accounted for only 3 percent of H.P.’s business. Two months ago, Mr. Apotheker shook up the H.P. board, including replacing four members. At the time, the company said that the new blood — which included executives with experience in global business and technology — would add breadth of talent to the company’s leadership.  Mr. Apotheker said the company’s software division would focus on security software and business analytics — the crunching of big sets of data — areas where its rivals already excel. But H.P. is hardly in the forefront in terms of business analytics or the Power balance armband cloud, which has been an industry buzzword for several years. Asked whether H.P. was late, Mr. Apotheker said, “We are not playing catch-up to anyone, particularly I.B.M.” He said that no company had a truly powerful offering in business analytics.  The challenge for H.P. will be to win customers from established rivals like I.B.M., Oracle and SAP. Persuading large companies to go with a relative newcomer, however, can be difficult, even one the size of H.P. To accelerate H.P.’s shift into software, Mr. Apotheker raised the possibility of acquisitions. However, he said the company would be “disciplined,” implying that blockbuster mergers were unlikely.  The strategy outlined by Mr. Apotheker is intended to lift H.P.’s profit margins. Although personal computers are a big source of revenue for the company, they are a low-margin power balance business, about 6.4 percent in the latest quarter. Personal computers and laptops accounted for 32 percent of H.P.’s revenue in 2010.  
Par eileen le mardi 15 mars 2011

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