Hewlett-Packard will keep its PC business

Filed Under (Technology) by fred on 28-10-2011

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Hewlett-Packard announced Thursday that it will continue selling personal computers after all, reversing an earlier decision to exit one of its core business lines.

The company shocked Wall Street and the tech industry alike when it announced Aug. 18 that its board was exploring “strategic alternatives” for its Personal Systems unit. That division mainly comprises HP’s PC business, which is the world’s largest. A sale or spin-off were two of the options being considered.

 

Yet HP  now says it believes that PCs should be part of its future.

“It’s clear after our analysis that keeping the Personal Systems Group within HP is right for customers and partners, right for shareholders, and right for employees,” Meg Whitman, the new CEO HP named last month, said in a written statement. “HP is committed to PSG, and together we are stronger.”

The company said it believes the PC business is too ingrained in the company’s supply chain and other key HP operations to let it go. Computers also help promote HP’s brand, and are a crucial part of the company’s “one-stop shop” services that it offers to corporate customers, HP said.

HP’s analysis also showed that spinning off the division would be so costly that it outweighed any benefit of dropping PCs.

The decision to ditch PCs came two months ago from then-CEO Leo Apotheker, who favored HP’s fast-growing, highly profitable software and server businesses over its low-margin computer business. HP’s PC unit was one of the industry’s most profitable, but the company still only squeezed out about a 5% margin on the devices.

Apotheker also noted that PCs aren’t flying off the shelves any more. Mobile devices like smartphones and tablets have begun to eat into PC sales.

“The tablet effect is real,” he said in August. “Consumers are changing the ways they use PCs.”

HP’s announcement sparked an uproar from many technology analysts. They called an all-in bet on software and services a risky decision for HP, considering that its services business has gone practically nowhere and its software business makes up just 2% of the company’s sales.

Hardware has long been HP’s cornerstone, and PCs making up a third of the company’s revenue. Despite its recent struggles, HP still sells more PCs than any other vendor, shipping 16.2 million PCs last quarter — enough to give it control of 17.3% of the market, according to Gartner.

Killing off the PC could confuse HP’s customer base, some analysts noted — particularly after the high-profile merger with Compaq 10 years ago that made HP the world’s top PC maker.

Apotheker was fired the month after his strategy announcement, though current CEO Meg Whitman said upon her hiring last month that Apotheker’s plan to exit PCs would still be considered.

But the company on Thursday drove a final stake into the heart of the Apotheker era.

“As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry’s broadest portfolio of PCs, workstations and more,” said Todd Bradley, head of HP’s Personal Systems unit. “We intend to make the leading PC business in the world even better.”

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Amazon’s Jeff Bezos : Steve Jobs ‘act alike’

Filed Under (Technology) by fred on 28-10-2011

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With the passing of Steve Jobs earlier this month, the tech industry lost one of its most revered icons. So where will the industry turn for inspiration now that Jobs is gone?

New Apple CEO Tim Cook will keep the business cranking along, but he’s unlikely to inspire the same kind of devotion as Jobs. Facebook leader Mark Zuckerberg has star power, but he and his company are still too young and untested. At Google, Larry Page is too awkward and Eric Schmidt too slick, and a lot of the company’s recent products are too unfinished.

But there’s one tech leader who just might fit the bill: Amazon’s Jeff Bezos.

Bezos runs his business the same way Steve Jobs ran his, with a relentless focus on long-term value over short-term profits and a willingness to place big bets in seemingly unrelated new areas.

Isaacson gives insight into Jobs’ life The difficult side of Steve Jobs Steve Jobs’ relationship with daughter The personal side of Steve Jobs

Steve Jobs took Apple on a detour from personal computers into music with the iPod, and then into cell phones with the iPhone. It worked, and made Apple into the biggest and richest tech company in the world.

Jeff Bezos is doing the same thing at Amazon.

About five years ago, Amazon noticed it had a lot of spare capacity in its data centers that was only used during the holiday season. So it started renting out some of that capacity to other companies. Now hundreds of high-profile Internet startups, including big names like Foursquare and Yelp, run their businesses on Amazon Web Services.

Somehow, an online bookseller became the most important provider of “cloud computing” — a fancy term for running other companies’ online services.

In 2007, Amazon introduced its electronic reader, the Kindle. The product limped along for a couple of years, then started to take off in 2010 with the third generation.

But next month Amazon will unveil Kindle Fire, a color version that is more like a full tablet computer, with an app store, music store, video store, and new kind of Web browser designed to load Web pages faster. And it sells for $199, which is hundreds of dollars less than Apple’s iPad. No wonder Amazon is having to build millions more than it expected to meet demand.

Somehow, an online bookseller could become one of the dominant players in tablet computing.

Bezos not only resembles Jobs in his business practices. He’s also got a lot of the same personal traits.

He’s a control freak

Google engineer Steve Yegge, who formerly worked at Amazon, accidentally published a post criticizing his current employer and praising Amazon and Bezos. (The post was supposed to be for Google’s eyes only.) He said Bezos was a micromanager who “made ordinary control freaks look like stoned hippies.” A Portfolio.com profile in 2009 said Bezos wanted to know the details of every contract Amazon signed and had to sign off on how he was quoted in every press release.

He doesn’t like dissent

Bezos often tells employees that they’re lucky to work at Amazon and leaves sticky notes reminding them who’s in charge if they disagree with him, according to Yegge.

He has otherworldly smarts

In a follow-up post, Yegge explained how Bezos was so smart that you could only impress him in presentations if you deleted every third paragraph to keep his brain occupied — and even then, he’d figure out something you missed. “People like Jeff are better regarded as hyper-intelligent aliens with a tangential interest in human affairs.”

He always wanted to change the world

According to a 1999 profile in Wired, a high school girlfriend says that Bezos wanted to make money from an early age, but not to be rich — he wanted to use the money to change the future.

He is obsessed with secrecy

Some companies are like leaky sieves — Hewlett-Packard can’t keep an internal secret to save its life, and Google and Facebook products leak all the time. The tech press publishes all sorts of rumors about Apple, but most of them turn out to be wrong because the company places a high premium on secrecy. But Amazon is even more secretive than Apple.

He was born in hard circumstances

Jobs was born to a young mother out of wedlock and given up for adoption. Bezos was born to a teenage mother whose marriage to his biological father lasted little more than a year. (Bezos has his adopted father’s last name and considers him his real father, just as Jobs considered his adoptive parents his real parents.)

To be sure, there are some major differences between the two men.

Jobs dropped out of liberal arts college Reed and bummed around for a few years before figuring out what to do with his life; Bezos graduated from Princeton and went straight to work on Wall Street. Jobs had a bit of the California hippie in him, practicing Buddhism and trying natural remedies to cure his cancer; Bezos is more of a classic computer scientist, obsessed with space travel and mechanically adept.

Most important, Amazon hasn’t yet created many products that inspire the kind of love that the iPod, iPhone and iPad do. There aren’t any Amazon fans — or at least they’re nowhere near as obsessed as Apple’s.

But give Bezos another five years and a few more new product areas, and that might change, too.

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Steve Job is dead

Filed Under (Technology) by fred on 06-10-2011

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Sad sad news, CNN reported the following:

 

Steve Jobs, the visionary in the black turtleneck who co-founded Apple in a Silicon Valley garage, built it into the world’s leading tech company and led a mobile-computing revolution with wildly popular devices such as the iPhone, died Wednesday. He was 56.

The hard-driving executive pioneered the concept of the personal computer and of navigating them by clicking onscreen images with a mouse. In more recent years, he introduced the iPod portable music player, the iPhone and the iPad tablet — all of which changed how we consume content in the digital age.

More than one pundit, praising Jobs’ ability to transform entire industries with his inventions, called him a modern-day Leonardo Da Vinci.

“Steve Jobs is one of the great innovators in the history of modern capitalism,” New York Times columnist Joe Nocera said in August. “His intuition has been phenomenal over the years.”

Jobs’ death, while dreaded by Apple’s legions of fans, was not unexpected. He had battled cancer for years, took a medical leave from Apple in January and stepped down as chief executive in August because he could “no longer meet (his) duties and expectations.”

Born February 24, 1955, and then adopted, Jobs grew up in Cupertino, California — which would become home to Apple’s headquarters — and showed an early interest in electronics. As a teenager, he phoned William Hewlett, president of Hewlett-Packard, to request parts for a school project. He got them, along with an offer of a summer job at HP.

Jobs dropped out of Oregon’s Reed College after one semester, although he returned to audit a class in calligraphy, which he says influenced Apple’s graceful, minimalist aesthetic. He quit one of his first jobs, designing video games for Atari, to backpack across India and take psychedelic drugs. Those experiences, Jobs said later, shaped his creative vision.

“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future,” he told Stanford University graduates during a commencement speech in 2005. “You have to trust in something: your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.”

While at HP, Jobs befriended Steve Wozniak, who impressed him with his skill at assembling electronic components. The two later joined a Silicon Valley computer hobbyists club, and when he was 21, Jobs teamed with Wozniak and two other men to launch Apple Computer Inc.

It’s long been Silicon Valley legend: Jobs and Wozniak built their first commercial product, the Apple 1, in Jobs’ parents’ garage in 1976. Jobs sold his Volkswagen van to help finance the venture. The primitive computer, priced at $666.66, had no keyboard or display, and customers had to assemble it themselves.

The following year, Apple unveiled the Apple II computer at the inaugural West Coast Computer Faire. The machine was a hit, and the personal computing revolution was under way.

Jobs was among the first computer engineers to recognize the appeal of the mouse and the graphical interface, which let users operate computers by clicking on images instead of writing text.

Apple’s pioneering Macintosh computer launched in early 1984 with a now-iconic, Orwellian-themed Super Bowl ad. The boxy beige Macintosh sold well, but the demanding Jobs clashed frequently with colleagues, and in 1986, he was ousted from Apple after a power struggle.

Then came a 10-year hiatus during which he founded NeXT Computer, whose pricey, cube-shaped computer workstations never caught on with consumers.

Jobs had more success when he bought Pixar Animation Studios from George Lucas before the company made it big with “Toy Story.” Jobs brought the same marketing skill to Pixar that he became known for at Apple. His brief but emotional pitch for “Finding Nemo,” for example, was a masterful bit of succinct storytelling.

In 1996, Apple bought NeXT, returning Jobs to the then-struggling company he had co-founded. Within a year, he was running Apple again — older and perhaps wiser but no less of a perfectionist. And in 2001, he took the stage to introduce the original iPod, the little white device that transformed portable music and kick-started Apple’s furious comeback.

Thus began one of the most remarkable second acts in the history of business. Over the next decade, Jobs wowed launch-event audiences, and consumers, with one game-changing hit after another: iTunes (2003), the iPhone (2007), the App Store (2008), and the iPad (2010).

Observers marveled at Jobs’ skills as a pitchman, his ability to inspire godlike devotion among Apple “fanboys” (and scorn from PC fans) and his “one more thing” surprise announcements. Time after time, he sold people on a product they didn’t know they needed until he invented it. And all this on an official annual salary of $1.

He also built a reputation as a hard-driving, mercurial and sometimes difficult boss who oversaw almost every detail of Apple’s products and rejected prototypes that didn’t meet his exacting standards.

By the late 2000s, his once-renegade tech company, the David to Microsoft’s Goliath, was entrenched at the uppermost tier of American business. Apple now operates more than 300 retail stores in 11 countries. The company has sold more than 275 million iPods, 100 million iPhones and 25 million iPads worldwide.

Jobs’ climb to the top was complete in summer 2011, when Apple listed more cash reserves than the U.S. Treasury and even briefly surpassed Exxon Mobil as the world’s most valuable company.

But Jobs’s health problems sometimes cast a shadow over his company’s success. In 2004, he announced to his employees that he was being treated for pancreatic cancer. He lost weight and appeared unusually gaunt at keynote speeches to Apple developers, spurring concerns about his health and fluctuations in the company’s stock price. One wire service accidentally published Jobs’ obituary.

Jobs had a secret liver transplant in 2009 in Tennessee during a six-month medical leave of absence from Apple. He took another medical leave in January this year. Perhaps mindful of his legacy, he cooperated on his first authorized biography, scheduled to be published by Simon & Schuster in November.

Jobs is survived by his wife of 20 years, Laurene, and four children, including one from a prior relationship.

He always spoke with immense pride about what he and his engineers accomplished at Apple.

“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do,” he told the Stanford grads in 2005.

“If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on.”


 

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