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A Simple Explanation for Why HP Abandoned Palm

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Re: A Simple Explanation for Why HP Abandoned Palm

#31
I have no faith in HP's leadership.

I was talking to an insider last year about how HP wanted to be a computer maker. I said, "I know them for their printers, they make awesome printers." He said, "Yeah, they're not so interested in printers these days. They think the money's in computers."

I guess it's whatever the "money's in" this week.

Re: A Simple Explanation for Why HP Abandoned Palm

#32
post #27

This quote: "Autonomy — a company I’d never heard of before but which more or less sounds like a rival to SAP" tells you everything you need to know about the blogger. He knows very little about the software business, and is just making up opinions based on his gut feeling, without backing it up with knowledge or evidence.

yup... Autonomy is a huge name in the enterprise biz. This blogger got it completely wrong when he said they are an SAP rival. Autonomy is Oracle's biggest threat now and will likely start making inroads on its biz.

Re: A Simple Explanation for Why HP Abandoned Palm

#33
post #8

WebOS was for Hurd just a fig leaf to make a future orientated impression, in reality were all the profits he made short term. What HP needs now is focus and that is what Apotheker is doing. Some people are disappointed that it is not consumer orientated, but when you look at the "smart phone wars" this seems reasonable to me. HP can't compete with Google, Apple and Microsoft there. Look at Nokia and Blackberry.

Palm was "saved" by HP, and WebOS, but where Palm was already too little too late, I think the HP aquisition didn't speed it up yet. Palm couldn't compete, and HP with their already dead Windows Mobile line of PDAs just added to the mess...

Re: A Simple Explanation for Why HP Abandoned Palm

#34
post #27

This quote: "Autonomy — a company I’d never heard of before but which more or less sounds like a rival to SAP" tells you everything you need to know about the blogger. He knows very little about the software business, and is just making up opinions based on his gut feeling, without backing it up with knowledge or evidence.

Have you been to Autonomy's website? Seriously... go have a look... have a look at the 'Introduction to Autonomy' page: http://www.autonomy.com/content/Autonomy/introduction/index....

"Organizations already benefiting from Autonomy technology include Avis, BAE Systems, BBC, BMW, Coca-Cola, CNN, Ericsson, Fiat, Financial Times, GlaxoSmithKline, Isabel Healthcare, KPMG, Linklaters, Lloyds TSB, NASA, Nestle, Oracle, Philips, Safeway, Schneider Electric, Shell, T-Mobile, The European Commission, The U.K. Houses of Parliament, The U.S. Department of Homeland Security and The U.S. Securities and Exchange Commission."

If Autonomy isn't enterprise software on the order of SAP (if not exactly the same business), they sure write confusing marketing copy.

Re: A Simple Explanation for Why HP Abandoned Palm

#35
post #3

I tend to agree with the basic reasoning but there's one thing I don't understand. Why cancel the TouchPad? Why not just spin that out with the hardware business to Compaq (which is the idea, yes?)? It seems they've devalued that unit by killing WebOS. All PC makers are on razor thin margins... apart from Apple. A post from yesterday [1] painted an interesting picture where Dell, through a series of seemingly rationa…

The TouchPad is a real disaster. 10% sell rate even after promotions? This is like ET for the Atari 2600. Best Buy was ready to just send back 245,000 out of the 270,000 it ordered because it couldn't sell them. At least HP agreed to give them away at liability cost instead of dumping them in a landfill.

Notice HP did not pull the Pre and Veer phones from the shelves or put them on fire sale.

HP's reasons for keeping the webOS lights on are probably threefold. 1) Phones are still for sale. 2) HP has a liability to show some support for webOS devices it sold or risk a class action lawsuit. 3) HP could still sell the Palm assets to someone and the company is lot more valuable if it comes with employees.

Re: A Simple Explanation for Why HP Abandoned Palm

#36
post #3

I tend to agree with the basic reasoning but there's one thing I don't understand. Why cancel the TouchPad? Why not just spin that out with the hardware business to Compaq (which is the idea, yes?)? It seems they've devalued that unit by killing WebOS. All PC makers are on razor thin margins... apart from Apple. A post from yesterday [1] painted an interesting picture where Dell, through a series of seemingly rationa…

> Why not just spin that out with the hardware business to Compaq (which is the idea, yes?)? It seems they've devalued that unit by killing WebOS. I'd imagine one of the biggest reasons is patents. If they spin out the business they have to sell the patents. If they're going into a new market where they don't traditionally have alot of expertise their only chance of not getting sued into oblivion is to be able to cro…

I am with you on the patent reason, but I think they are going to sell them. They probably figure they are worth more than a WebOS-based device would be to the PC division.

Re: A Simple Explanation for Why HP Abandoned Palm

#37

I think his interpretation of the facts is very plausible. Sadly, Larry Ellison was absolutely right when he said, at the time of Hurd's scandal, "the HP Board just made the worst personnel decision since the idiots on the Apple Board fired Steve Jobs many years ago." Good CEOs who can revamp stagnant companies are hard to come by, particularly in the consumer space. Hurd was that CEO, Apotheker is not. And getting o…

Firing Steve Jobs was the best thing Apple could have done, long term.

Apple is where it's at today because of what Steve Jobs learned and grew from his "failures".

Re: A Simple Explanation for Why HP Abandoned Palm

#39

I think his interpretation of the facts is very plausible. Sadly, Larry Ellison was absolutely right when he said, at the time of Hurd's scandal, "the HP Board just made the worst personnel decision since the idiots on the Apple Board fired Steve Jobs many years ago." Good CEOs who can revamp stagnant companies are hard to come by, particularly in the consumer space. Hurd was that CEO, Apotheker is not. And getting o…

I wonder what do you think Hurd was a good CEO? I understand that HPQ stocks were going up but the raise was based on eating the future.

Hurd made HP very toxic place to work (I know that first hand): and how the heck you can compete with Apple when your engineering force is demoralized?

Also what would be HP future under Hurd helm?

As of Larry's comment... Larry talks his book. He does not care what will happen to HP and he needed a guy to clean up Sun hardware division. So of course he will praise Hurd.

Re: A Simple Explanation for Why HP Abandoned Palm

#40
post #37

I think his interpretation of the facts is very plausible. Sadly, Larry Ellison was absolutely right when he said, at the time of Hurd's scandal, "the HP Board just made the worst personnel decision since the idiots on the Apple Board fired Steve Jobs many years ago." Good CEOs who can revamp stagnant companies are hard to come by, particularly in the consumer space. Hurd was that CEO, Apotheker is not. And getting o…

Firing Steve Jobs was the best thing Apple could have done, long term. Apple is where it's at today because of what Steve Jobs learned and grew from his "failures".

This is true also because Steve Jobs speaks about it in his Stanford speech, but it's a rare event that you cannot know in advance. No company fires the CEO to let him learn more and then come back to rescue the company.

Moreover Apple went on the verge of bankruptcy before Steve Jobs came back. So it was still a bad decision for the board to fire him.

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