Could HP appointments mean less focus on services?

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Following Robert Morgan's contribution to this blog this morning I thought I would do something on the Oracle/HP job swapping. Sorry I can't compete with Robert, or the "Bard" should I call him.

Here goes:

HP has replaced Mark Hurd with former SAP head Léo Apotheker  and its new chairman Ray Lane is a former Oracle senior executive.

Mark Hurd was credited with making HP's acquisition of EDS a success and taking the IT giant well into the services space.

The services space is obviously attractive to the big US IT hardware firms.

HP acquired EDS.

Dell bought its way into services with the acquisition of Perot Systems.

Then Xerox took over ACS.

And these companies have a lot of room to grow. If you look at the top 15 IT service providers to the European market you will see that only HP is there.

But Oracle and SAP are software companies. A colleague of mine spoke to an analyst who believed this is a sign that HP will refocus on its product sales.

And what about Oracle. Under Hurd's guidance now could be the time for it to buy a service provider. A colleague of mine reckons next year it might be able to afford to buy Accenture.

Here are some other possibilities.

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About this Entry

This page contains a single entry by Karl Flinders published on October 5, 2010 11:00 AM.

Will small businesses be a step too far for industrialised IT services? was the previous entry in this blog.

Do Indian IT suppliers stand a chance in large government deals? is the next entry in this blog.

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