Business, Hardware

HP Spinoff: Announcement in Weeks, Transition in 12-18 Months


We spoke with several sources close to the action and learned interested news about the fate of HP Personal Systems Group (PSG). The future of the company is looking better than HP’s, we might add.

First off, the announcement about the future of PSG is going to be announced in as early as four to five weeks from now, maybe even sooner. The spin off will take place in the next 12-18 months, with the separation of the company taking place.

This is one of biggest startups in the industry, even larger than AMD-GlobalFoundries split (which resulted in creation of an entity that has more capital than the company it spunned off from) – GlobalFoundries weighs in about $15-18 billion (current value + guaranteed investment), while HP PSG is looking to be a $40-46 billion startup.

The main core of the old HP will be busy for the next 18-24 months integrating EDS and Autonomy, battling ORACLE and SAP – after all, this is the competency the current CEO, former CEO of SAP is capable of doing. One of our sources is very close to the Mr. Apotheker and was kind enough to explain the mindset of current HP CEO. Needless to say, the source plans to jump ship with the PSG unit.

The new company already started the search for a new name, recruiting not one or two marketing agencies to handle the process – but several highly-ranked executives met with Mr. Apotheker, and the decision should be made by the upcoming announcement.

The problem that HP currently has on the company level is similar to the challenge Microsoft faced six years ago, when the company was gearing for the launch of Windows Vista. Giant from Redmond had too many layers of management in order to get the things done and was bleeding people to Google, prompting a management reshuffle and the removal of macro-micro-management.

Furthermore, our sources are having high hopes after leaving HP’s arms. In fact, one of executive-level sources was very positive and referred us to the interview former HP executive, more know as the founder of VoodooPC gave to our colleagues at X-bit Labs.

The new PSG will continue to supply the market with tens of millions of personal computers each year, but will also launch products which were cut down by non-understandable HP management, which shot down numerous projects. New company has a very impressive prototypes for future convergence devices, such as highly integrated hub controlling all aspects of your home electronics through a single user interface – that concept is scheduled to launch with the Windows 8. There are many more solutions which we were aware about, but never saw the light of day.

The new company won’t be interested in the low-margin business, and expect a lot of innovations ahead. The recent Asian tour lead by Mr. Todd Bradley, potential CEO of the new company wasn’t just interested in keeping the supply chain for another round of $99 and $149 TouchPads, but rather to see when will the Far Eastern manufacturers start supplying higher quality components for innovative products.

Can "The New PSG" find its way under the Sun? Only time will tell.