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10 Things CIOs Need to Know About HP CEO Meg Whitman

By Don Reisinger on 2011-09-27


After only 11 months on the job, Leo Apotheker was ousted Sept. 22, 2011, from the CEO slot at HP and former eBay CEO Meg Whitman was named by the company's board of directors to replace him. Whitman, who had attempted an unsuccessful run in 2010 for the California Governor's office, becomes the company's third CEO in 13 months. She has very little experience in the enterprise technology sector, and she appears to know more about the online world than the PC business. Indeed, some critics wonder whether she's the right choice for the job. Then again, running a company of the size and scale of HP is no mean feat, as the revolving door of the CEO's office has shown. HP's enterprise customers have no choice but to wait and see how things play out under Whitman. As you consider your options, here are 10 things you need to know about HP's new CEO.

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More of the same?
Incoming CEO Meg Whitman has stated that HP will move forward with the strategies put in motion by ousted CEO Leo Apotheker. She said that the company will focus on software and solutions, and will evaluate what to do with its PC business.

HP’s PC business is in jeopardy
Whitman has said that she might continue with Apotheker's plan to spin off HP’s PC business. If she follows through with the plan, it could prove disastrous for enterprise customers, particularly those that that have made large HP purchases.

Say good-bye to TouchPad
Although it experienced a sales surge after being discontinued and severely discounted, HP’s TouchPad will not be making a comeback. It seems Whitman wants to turn her back on the hugely popular mobile space for now as she works to reestablish HP’s fundamentals.

Consumer focus
Apotheker was a longstanding enterprise technology executive, but Whitman's roots are in consumer and online services. Whether she'll attempt to shift HP's priorities toward the consumer marketplace remains to be seen. That’s the market she knows -- and some analysts say it's the market with the most profit potential for HP.

Enterprise software
That said, Whitman has already said that her strategy includes turning HP’s software and solutions into staples of the corporate world. It would be nice if PCs were also included in that strategy.

Time to rebuild
Over the next few years, expect HP to undergo a major restructuring. Meanwhile, CIOs will need to keep a close eye on HP’s changing strategy to see if it remains consistent with enterprise technology needs.

Long-term changes
Whitman still needs to determine where the company stands, and has to find the right people to implement her strategies. So, at least over the next few months, CIOs shouldn’t expect many drastic changes to occur at HP.

WebOS might still matter
Even during its short lifetime, WebOS -- HP's mobile operating platform -- showed some promise. Depending on how much Whitman wants to bet on software, WebOS could very well become a key component in her plans to position HP for consumers and enterprise users.

Trust?
As a CIO, you’re probably worried about HP right now. The company is on its third CEO in 13 months, and its rapid decisions and drastic measures might make you doubt its intentions. That’s understandable. And Whitman has yet to implement any changes. Learning to trust HP again might take some time.

There are no simple answers
HP’s PC business is in turmoil, its mobile business has been gutted, and there’s no telling if the plans to focus to on software and solutions will pay off. Unfortunately for Whitman and all other stakeholders, there are no simple ways to fix this company.

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