HP’s decision to split the company in two, with its consumer computing and printing departments separated from its software, business servers and IT services operations.
The IT giant is not shy to get itself in the headlines. Back in 2008 when it paid $13.9bn for IT outsourcing pioneer, heads turned and the column widths followed. The same happened a few years later when the value of this acquisition was reduced by almost $9bn.
The news that HP is splitting the enterprise business, including services, from the consumer business triggers a new era in the former EDS business.
I wrote an article about the future of the services business following the split. Here it is.
I have since had conversations about this and quite a few people are describing the split as the first stage in massive restructuring and the sale of the services business.
One source, a former EDSer who now works for a large competitor, says that HP services has been picking up quite a few big deals recently. He said it has also recruited people from Computacenter and recruited former EDS people that had been let go.
But who would buy it and how much would it cost?
The IT sector has changed with digital technologies transforming how businesses receive and use IT and there are lots of suppliers in the sector that are ahead of HP Services in terms. For instance the Indian suppliers have gone from strength to strength and continually manage to report double digit sales growth. They have kept up with digital developments.