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HP split

HP Splits Into Two Public Companies

HP is separating into two public companies, Hewlett-Packard Enterprise (HP) and HP Inc. Hewlett-Packard Enterprise (HP) will focus on technology infrastructure, software, and services for IT companies and professionals. That includes servers, storage, networking, converged systems, services and software as well as its OpenStack Helion cloud platform. HP Inc. will focus on personal systems and printing devices. Of course, this HP split is really more of a diversification. Heading up Hewlett-Packard Enterprise will be Meg Whitman, who will serve as President and Chief Executive Officer. Pat Russo will be the Chairman of the Hewlett-Packard Enterprise Board.

Notably, the release announcing the split, included a hint that HP Inc. would lead the company into such technologies as next-gen printing, including 3D printing. Dion Weisler will be the President and Chief Executive Officer of HP Inc. with Meg Whitman also serving as Chairman of the HP Inc. board.

The two new publicly traded Fortune 50 companies can be thought of as splitting up the company’s enterprise technology infrastructure, software and services businesses (Hewlett-Packard Enterprise), from their personal systems and printing businesses (HP Inc.—which will retain the current logo.) The corporate separation should be completed by the end of fiscal 2015. Shareholders will own shares of both Hewlett-Packard Enterprise and HP Inc. as a result.

Management Structure

As mentioned, Hewlett-Packard Enterprise will have Meg Whitman as President and CEO, while Cathie Lesjak will be the CFO. Upon completion of the company separation, Whitman will also serve on the Board of Directors of Hewlett-Packard Enterprise, and Pat Russo will move from Lead Independent Director of HP to be the Chairman of the new company.

Dion Weisler, currently the Executive Vice President of HP’s Printing and Personal Systems business, will serve as the President and CEO of  HP Inc. Whitman will dual-serve as the non-executive Chairman on HP Inc.’s board of directors.

Hewlett-Packard Enterprise

Hewlett-Packard Enterprise is being positioned to advance the company’s technology infrastructure, software and services to expand into business consumer cloud, big data, security and mobility segments. The company will leverage its HP Financial Services capability to allow it to deploy unique technology for customers and partners based on their specific business needs. Additionally, the company will continue to have HP Financial Services provide financing and business model services for customers and partners of HP Inc.

The hope is that HP Inc will provide these services with more adaptability and greater flexibility and speed thanks to a tighter focus on its core markets. The separation will also provide additional resources, and a reduction of debt at the operating company level as well as greater flexibility in completing the turnaround of Enterprise Services.

About Clint DeBoer

When he's not remodeling part of his house or writing the latest power tool reviews, Clint enjoys life as a husband, father and avid reader. He has a degree in recording engineering and has been involved in multimedia and/or online publishing in one form or another for the past 18 years. In 2013, Clint was asked to come onboard CopierGuide and help change the way consumers educate and inform themselves about copiers as well as provide a much easier solution to the task of leasing these machines for business.

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