Gartner Research

The Impact of HP Reorganization and Layoffs on Enterprise Buyers

Published: 06 July 2012

ID: G00233821

Analyst(s): Whit Andrews , Pete Basiliere , Ken Weilerstein , Mark Fabbi

Summary

HP has reorganized and announced layoffs of nearly 27,000 employees. These changes can be disruptive to customers, and HP must manage the potential conflicts, and the gaps in its product development and market strategies.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • The combining of the PSG and IPG into the new PPSG may shortchange HP's print service provider and in-plant printing customers
  • The reorganization and shift of the enterprise sales group into the new EG may encourage sales of hardware-centric integrated solutions, but could result in more fractured sales processes for other HP business units — especially HP Software, HP Services, and PPSG products and services
  • The executive changes at Autonomy show HP has recognized key shortcomings in Autonomy's sales and support practices, but there's no quick fix for these issues, and enterprises must be prepared in the short term for challenging interactions
  • The lack of detail in HP's goal of using savings attained through greater efficiency and workforce reductions to fuel innovation and strategic solutions means enterprises should continue to interact with HP as a provider of tactical products and services

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