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Town Square

Another HP Setback/Tragedy

Original post made by Paul Losch, Community Center, on Nov 20, 2012

A multi-billion dollar write off announced today, due to shoddy due diligence relating to HP’s acquisition of Autonomy a couple years ago.

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Comments

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Posted by Kerry
a resident of Another Palo Alto neighborhood
on Nov 20, 2012 at 1:06 pm

Paul,

How do you see HP viz a viz Cisco? Both companies have had their ups and downs, yet Cisco seems to have tightened it focus, even though it is a M&A model. At one point, there was concern at Cisco that HP was serious compeition. Is this still the case?

Can HP follow on Cisco, and get its act together?


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Posted by Paul Losch
a resident of Community Center
on Nov 20, 2012 at 5:17 pm

Paul Losch is a registered user.

Kerry,

You ask questions well above my pay grade for this blog.

I did buy Cisco stock in 1993, and thank you very much, my IRA is better for it.

Keep it simple. HP has not done that the last 10+ years. Carly F. strutting around stages, Mark H. as Mr. Efficiency Expert, German guy who was not a good fit. Now Meg Whitman, whom I highly regard, and she is dealing at this point with a pig in a poke.

Cisco stock has not done well the last few years from a valuation standpoint, but I hold the stock because it does appear to understand its fit in the scheme of things.

Contact your financial advisor.


Like this comment
Posted by Kerry
a resident of Another Palo Alto neighborhood
on Nov 20, 2012 at 5:42 pm

Paul,

Do you think that HP, if taken over by Oracle or Bain could be turned into a profit center, thus saving jobs in Palo Alto?


Like this comment
Posted by Bain
a resident of Green Acres
on Nov 20, 2012 at 6:05 pm

How would a vulture capital firm (not venture) save jobs in Palo Alto?

Besides, Meg is tied into the bain crowd, hasn't helped yet.


Like this comment
Posted by Hmmm
a resident of East Palo Alto
on Nov 20, 2012 at 6:16 pm

Yep,the comment above shows good insight. I think both sides were less than ethical & now they're pointing fingers.


Like this comment
Posted by Gisele
a resident of College Terrace
on Nov 20, 2012 at 6:30 pm

[Post removed by Palo Alto Online staff.]


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Posted by Ducatigirl
a resident of Old Palo Alto
on Nov 20, 2012 at 6:32 pm

My husband has been saying for years that the HP Way died with David Packard. He and William Hewlett must be spinning in their graves.


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Posted by Sharon
a resident of Midtown
on Nov 20, 2012 at 7:02 pm



IBM in the early 90s faced the same challenges as HP at that.

1/ A culture of life time employment with no connection to performance

2/ A culture of politeness, conflict avoidance and consensus decision making

3/ Reduced revenues for its main product-Big Iron -and increased competition from companies like SUN

IBM hired a new CEO who turned IBM around into a consulting and professional services company-Chambers-CISOs Ceo was employed by IBM at that time-he learned the lessons.

When John Young became CEO of HP in the 90s he had a company that had

1/ A culture of life time employment with no connection to performance

2/ A culture of politeness, conflict avoidance and consensus decision making

3/ Reduced revenues for its main product-Big Iron -and increased competition from companies like SUN

Young did nothing, Lew Platt did stupid things-after that they payed lots of money to useless PR companies like cunningham communications and tried to spin their way out of what was and is a death spiral

Meanwhile CISCO applied the lessons from IBM and transformed itself from a Product Company to a Systems and Solutions Company

While HP hired a succession of incompetent fools as CEO and fired the only competent one - Hurd- for some silly Politically Correct/PR Psychobable reason


Like this comment
Posted by Sandrine
a resident of Palo Alto Hills
on Nov 21, 2012 at 2:10 pm

[Post removed due to same poster using multiple names]


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Posted by Gisele
a resident of College Terrace
on Nov 21, 2012 at 2:15 pm

[Post removed due to same poster using multiple names]