The Silicon Valley tech. giant Hewlett-Packard has struggled the past decade. HP has been overshadowed by Apple Inc’s $596-billion and Microsoft Corp’s $380-billion market values compared to HP’s miniscule $66-billion. The world’s top PC maker by shipments has already been taken over by Lenovo, an aggressive Chinese PC maker. HP has failed to adapt to the new era of mobile and online computing, therefore the company has decided to split into two separate companies. The technology pioneer plans to separate its computer and printer businesses from its corporate hardware and services operations. The move could signal a renewed focus and commitment towards their computer and printer business while allowing the corporate hardware and services operations the flexibility to grow and expand at its own pace. Many investors have pursued this spin-off due to the more profitable operations of providing computer servers, networking and data storage to businesses.

This move will be beneficial for the juggernaut technology company. With the separation, each division can focus on their core product offerings and strategies. Splitting up the company could open up business opportunities and partnerships in the near future. Unfortunately, two divided HP businesses might have less negotiating power as the combined behemoth at the moment. This strategic shift had to be deployed though as the computer and printer business was becoming a liability and it was hindering the growth of the corporate hardware and services operations. Meg Whitman will be the chairman of the computer and printer company, and CEO of a separate enterprise business whereas Patricia Russo will be the chairman of the enterprise business. Lastly, the computer and printer operation will be led by Dion Weisler, a current executive in that division.

http://www.theglobeandmail.com/report-on-business/international-business/us-business/silicon-valley-giant-hewlett-packard-to-split-in-two-report/article20938032/

http://www.businessinsider.com/hp-is-planning-to-split-2014-10