The Split of a Tech Giant

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It is expected that as early as Monday news will be announced that will shape the tech landscape. Hewlett-Packard Co (HP) is expected to announce that it will be splitting into two companies to place more focus on the faster corporate service market. I believe this will be a very important step in the landscape of the tech industry and especially for HP as this is a large decision that is impacting one of the most important companies of the past 100 years and a company still prominent with over 300,000 employees.

It is HP’s plan to separate itself into two  separate entities with one focusing on computers and printers and the other corporate hardware and services. This is all coming about in my opinion because of how hard HP has found it to stay relevant in the shifting landscape of technology. This is mostly due in my opinion to more and more companies entering the field and people moving towards mobile computing which they have never specialized in. HP was once at the forefront of the tech and PC revolutions but now I believe that many people consider it the old dog in the industry as their name alone does not hold the same values it once did. This can be seen by the fact that HP has lost its number 1 position of being the biggest PC maker by shipments to the very aggressive Chinese company Lenovo and has faced many of the same struggles that Dell has faced in recent years.

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I know that HP is still very successful as they still possess a market value of $66 billion but that is actually a fragment of what companies like Apple and Microsoft possess. I feel that this is the smartest option for HP as it will allow them to hopefully expand their horizons and stay relevant in the years to come.

http://ca.reuters.com/article/businessNews/idCAKCN0HU0QY20141005?pageNumber=1&virtualBrandChannel=0

http://www.fool.com/investing/general/2013/09/10/the-dow-just-gave-hp-another-reason-to-break-up.aspx

http://www.forbes.com/sites/ericsavitz/2012/10/08/hp-why-bill-and-dave-would-back-a-break-up-plan/

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