HP Making Progress on Turnaround Plan: Del Prete

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Nov. 26 (Bloomberg) –- IDC's Crawford Del Prete comments on Meg Whitman's turnaround plan for Hewlett-Packard. He speaks with Emily Chang on Bloomberg Television's "Bloomberg west." (Source: Bloomberg)

Who covers hp.

You meet with hp executives.

Given what you know from the inside, what is your take?

My take is that when you think about hewlett-packard and the progress they are making, this is significant progress.

They are not think the revenue declines they have seen in the past.

When you look at the core business.

It is performing better than it has been performing.

Whether you look at the networking business, which was stronger in china.

The pc business is that tough spots and will continue to be a tough spot.

They are doing better in commercial, cup -- but consumers are a significant weak spot.

What is happening within the company, they are executing better in what we consider second platform technology, but they are not making the progress fast enough in the third lot form.

-- platform.

That is really what will be the difference between declines and growth for hewlett-packard.

Meg is delivering on better accountability.

It is a strong team.

But they have to accelerate their participation in these new markets.

What does she tell you in her meetings with her, crawford?

Is she convincing?

Does she have a clear strategy?

She is very intelligent in terms of the way she approaches this business.

She came up to speed on this business very quickly.

It is a complex beast.

They are in so many markets.

One area i did not talk about earlier was printing.

They are seeing benefits.

What she is really focused on is better management of the overall business and that is where she spends a significant amount of her time.

How do you manage this sort of multi-headed organization more effectively?

She is focused on r&d investment and driving new areas of growth.

Things like security, all of those acquisitions, these were big security acquisitions.

They need to monetize security, they need to monetize software in a better way, and the need to drive more innovation.

That is where she spends a lot of her time.

She has been handcuffed because she has not been able to do acquisitions since the debacle.

Quite a debacle in deed.

Is the turnaround going to happen in five years?

We are in year three and is not looking great.

The company is going to make progress between now and two years from now.

They will see -- again, they are progressing toward a world where they can show low single-digit growth.

Will the company be able to do acquisitions?

I believe they well.

Meg has said that to me and she has said that publicly.

I think the company will be able to do those acquisitions.

That will fuel growth.

Whether the company will hit all of these milestones, i cannot say.

Quickly, crawford, if you were to meet with her again, what would you ask her?

The channel strategy, they change their channel chief over the last six months.

What are they going to do to drive growth in the channel?

As well as, i am really focused on how they make this transition in the client business, how they turn into a new kind of client company.

Those are some of the key areas.

Crawford, thank you so much for weighing in.

Google has been ordered to

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


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