MGI Research

Tuesday, Aug 14th

Last update12:00:00 AM GMT

Who Benefits from Disarray at HP?

HP customers, investors and business partners feel like they are stuck in the HP version of the movie "The Groundhog Day". After three dramatic CEO exits in recent history, with the ouster of Hewlett Packard's CEO Leo Apotheker, and the appointment of Meg Whitman to succeed him, it is not a surprise to see both HP shares and its market position under pressure. The question amongst HP competitors is not one of "Who could benefit from HP troubles", but one of "Who will benefit the most?" Can HP really defend its turf in servers, storage and software while continuing the process of assimilating a large services business acquired with EDS? Do the immediate competitors such as IBM, Dell and EMC, have the requisite strength to attack entrenched HP market positions? In this report, we analyze HP current situation as well as the outlook for a recovery at the world's largest technology company.

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