Fiorina: It's Sad That HP Missed Mobile Revolution

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Aug. 22 (Bloomberg) -- Former Hewlett-Packard CEO Carly Fiorina discusses the company's challenges and the possibility of Dell going private with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Results from hewlett-packard.

Are the results endemic to a wider trend or is this system -- since -- specific to what is going on at hp?

From a wider technology perspective, you see a whole set of hardware providers who are now struggling with the fact that the infrastructure, the plumbing of the internet if you will, is becoming more commoditized, more intensely competitive, and the global economy is not recovering at the pace that they had hoped.

That is the contacts -- context in which this is going on.

Prior to mega joining, this was a company that squandered leadership.

I mean, they did not use that.

Of leadership -- that period of leadership to invest in the future.

The only way to grow businesses is to innovate.

When you look at hewlett- packard's results, they are doing great on controlling the cost and cash flow, but you have declining revenues across the board.

You have compressed margins across the board.

The margins in the professional services business are about the same as the pc business.

Now it is about keeping cost structure in line but also innovating so that there are products and services the will -- customers are willing to buy.

Is this an example that when a company gets big, a successful company gets big, they spend more time worrying about losing the business they already have then in many cases building new technology that you are describing?

I don't think that is necessary.

In fact, having done it at hewlett-packard, i think you can balance cost-cutting and efficiency with innovation.

I think the -- meg is trying to do that.

She was dealt a very tough hand.

I will say again, prior to this, there has been so much cost- cutting.

Cost-cutting is very important but it can only take you so far.

It cannot grow a business.

It cannot buy you new customers.

It cannot expand your operating margins over time.

I think the necessity for both the company specifically and the hardware providers in general, is to find places where they can innovate.

Does it strike you as ironic that hewlett-packard, which was one of the innovators of technology after the second world war, that you don't see any mobile technology coming out of companies like hewlett- packard right now?

Ironic is one word, sad is another word.

There is no reason why hewlett- packard should have messed the mobile revolution.

The wrong decisions were made.

Let's be candid.

The truth is, a large company with a great asset like hp labs, tremendous lack cash flow -- tremendous cash flow, leadership, there is no reason a company like that shouldn't be on the leading edge of technology.

Bureaucracies take over, but that was, in my opinion, a bad set of choices.

Leadership thought it was more important to cut costs than invest in the future and continue a long tradition of innovation.

You mentioned this idea -- a quarter by quarter scorecard, what about going write it?

-- goin private?

I think hewlett-packard is too large to go private in its current form.

When you look at the dell case, i understand the temptation that it is all going to bed -- to be better when you go private.

Michael dell will have another master and that is his debt structure.

The kinds of strategies that michael dell is talking about putting in place or is putting in place now, sacrificing margin for market share, he has done those things before.

I admire michael dell.

He is putting his name and reputation at stake to turn this company around.

I haven't heard him talking about doing anything much

This text has been automatically generated. It may not be 100% accurate.


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