Taken together, the recruitment of Mr. Apotheker and Mr. Lane would seem to signal that H.P. plans a more forceful march into the business software market, where it would butt up against Oracle, I.B.M., Microsoft and SAP.
“I think you have to take it that way,” said China Martens, a software analyst for the 451 Group. “To bring in people with software stamped all over them is very intriguing.”
While it’s the largest seller of printers, PCs and computer servers, H.P. has struggled to expand its software business at comparable rates. It bought a number of companies that make software for helping manage data centers, but has played less in the traditional business software markets with products that track data, inventory, employees and sales leads.
Any lurch toward the business software realm would leave it treading on Oracle’s toes, and tensions between the two companies already run high.
Oracle has started selling computer servers, encroaching on H.P.’s turf, and H.P. has now tapped a pair of executives with deep knowledge of Oracle’s practices.
Mr. Apotheker moved through the ranks of SAP, including stints as the head of sales, co-chief executive and chief executive. He resigned as chief executive in February, just seven months after earning the job outright.
During his tenure as chief, SAP suffered through a large round of layoffs, major product delays and a customer revolt against the company’s decision to raise software support prices.
“I think it would be fair to say he left SAP under a cloud, but it would also be fair to say it wasn’t all his fault,” Ms. Martens said, adding that Mr. Apotheker can come off as both polished and abrasive.
For his part, Mr. Apotheker said: “My claim to fame is that I made SAP into the largest business software company on the planet.”.
Mr. Apotheker’s hiring marks the third time in a row that H.P. has passed over internal executives when it came to filling a vacant chief executive spot.
Brendan Barnicle, an analyst at Pacific Crest Securities, said Mr. Apotheker was hardly considered a front runner for the job, particularly given his lack of expertise in hardware.
“It’s an interesting choice, and it’s not something I would have expected,” Mr. Barnicle said.
He added that the culture at H.P., where the traditional emphasis has been on the customer, was very different from SAP’s, which prizes its engineering culture.
Ross S. MacMillan, an analyst with Jeffries & Co., said Mr. Apotheker’s lack of hardware experience was not necessarily a shortcoming. He pointed to Mr. Apotheker’s sales background and said he could take advantage of his existing relationships with big customers.
“Those individual decision makers are going to be the same for SAP as H.P.” Mr. MacMillan said. “He may not be the expert on hardware, but he has the buyer relationships.”
Mr. MacMillan also pointed to Mr. Apotheker’s German background as a potential plus for H.P. when it comes to adding business in Europe. Of particular note, he said, is that Mr. Apotheker speaks six languages.
As for H.P.’s shares falling on news of Mr. Apotheker’s hiring, Mr. MacMillan pointed to the surprise factor.
“This wasn’t deemed to be a candidate that was on people’s minds,” he said.
Some critics emphasis the CEO lack of expertise on the hardware industry. This is a knowledge background that in my humble opinion is no longer valid, not for the future of the company. Technology is advancing and Cloud Computing is near the corner. Sooner or later the consumer will discover a new way of buying, and they will buy services, not objects. It is the path of: pay on demand, consume on demand, receive what you ask for. A very good sample is Dlink Boxee, Apple TV, and Google TV. They do not only let you access the Web through your TV, also access Cloud Computing/Gaming/Office. The hardware industry is over, time to emphasis on software engineering and how to sell it. New CEO expertise in sales is valuable, hope he is keen enough to reroute company in the right path.
5 comments:
Taken together, the recruitment of Mr. Apotheker and Mr. Lane would seem to signal that H.P. plans a more forceful march into the business software market, where it would butt up against Oracle, I.B.M., Microsoft and SAP.
“I think you have to take it that way,” said China Martens, a software analyst for the 451 Group. “To bring in people with software stamped all over them is very intriguing.”
While it’s the largest seller of printers, PCs and computer servers, H.P. has struggled to expand its software business at comparable rates. It bought a number of companies that make software for helping manage data centers, but has played less in the traditional business software markets with products that track data, inventory, employees and sales leads.
Any lurch toward the business software realm would leave it treading on Oracle’s toes, and tensions between the two companies already run high.
Oracle has started selling computer servers, encroaching on H.P.’s turf, and H.P. has now tapped a pair of executives with deep knowledge of Oracle’s practices.
Mr. Apotheker moved through the ranks of SAP, including stints as the head of sales, co-chief executive and chief executive. He resigned as chief executive in February, just seven months after earning the job outright.
During his tenure as chief, SAP suffered through a large round of layoffs, major product delays and a customer revolt against the company’s decision to raise software support prices.
“I think it would be fair to say he left SAP under a cloud, but it would also be fair to say it wasn’t all his fault,” Ms. Martens said, adding that Mr. Apotheker can come off as both polished and abrasive.
For his part, Mr. Apotheker said: “My claim to fame is that I made SAP into the largest business software company on the planet.”.
Mr. Apotheker’s hiring marks the third time in a row that H.P. has passed over internal executives when it came to filling a vacant chief executive spot.
Brendan Barnicle, an analyst at Pacific Crest Securities, said Mr. Apotheker was hardly considered a front runner for the job, particularly given his lack of expertise in hardware.
“It’s an interesting choice, and it’s not something I would have expected,” Mr. Barnicle said.
He added that the culture at H.P., where the traditional emphasis has been on the customer, was very different from SAP’s, which prizes its engineering culture.
Ross S. MacMillan, an analyst with Jeffries & Co., said Mr. Apotheker’s lack of hardware experience was not necessarily a shortcoming. He pointed to Mr. Apotheker’s sales background and said he could take advantage of his existing relationships with big customers.
“Those individual decision makers are going to be the same for SAP as H.P.” Mr. MacMillan said. “He may not be the expert on hardware, but he has the buyer relationships.”
Mr. MacMillan also pointed to Mr. Apotheker’s German background as a potential plus for H.P. when it comes to adding business in Europe. Of particular note, he said, is that Mr. Apotheker speaks six languages.
As for H.P.’s shares falling on news of Mr. Apotheker’s hiring, Mr. MacMillan pointed to the surprise factor.
“This wasn’t deemed to be a candidate that was on people’s minds,” he said.
http://www.nytimes.com/2010/10/01/technology/01hewlett.html?_r=1&partner=yahoofinance
hmmm smells like future merger with major software firm...
HP board's selection of new CEO raises new doubts
http://finance.yahoo.com/news/HP-boards-selection-of-new-apf-1117462233.html?x=0&.v=1
Apotheker vs. Hurd: Who Makes More Money ?
http://blogs.wsj.com/deals/2010/10/01/apotheker-vs-hurd-who-makes-more-money/?mod=yahoo_hs
Some critics emphasis the CEO lack of expertise on the hardware industry. This is a knowledge background that in my humble opinion is no longer valid, not for the future of the company. Technology is advancing and Cloud Computing is near the corner. Sooner or later the consumer will discover a new way of buying, and they will buy services, not objects. It is the path of: pay on demand, consume on demand, receive what you ask for. A very good sample is Dlink Boxee, Apple TV, and Google TV. They do not only let you access the Web through your TV, also access Cloud Computing/Gaming/Office. The hardware industry is over, time to emphasis on software engineering and how to sell it. New CEO expertise in sales is valuable, hope he is keen enough to reroute company in the right path.
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