You're both right. While it is true that for the hardware business, HP's stability is surely good enough. On the other hand, when it comes to enterprise contracts, stability matters a lot more.
I have at least some first-hand evidence to this fact. $DAYJOB is currently at a large enterprise service provider. We are currently buying HP switches like crazy, and I don't expect that to change. I've also been privy to some aspects of the sales process. We can go through the sales song and dance forever and ever, going deeper and deeper in to technical and business details. However, when the prospect asks about company stability, size, and governance, this always signifies they are about to ask for a formal contract.
In other words, for big, enterprise customers, stability matters. It's impossible to tell what sort of effect this will have on HP. Maybe none. But these sorts of subtle changes to reputation have a funny trajectory of their own, independent of the instantaneous news cycle. I wouldn't be surprised if IBM et al. started using the shake-up to their advantage during the sales process. We very well might see some of the after-effects in the next six months.
The way HP handles this transition will be critical. If the board looks like they are floundering, I think they will be toast. If they can keep up the appearance of running a tight ship, they'll be alright.
It would seem to me that de-emphasis of the consumer side (i.e., psg and webos) to focus on the enterprise should have (in theory, at least) lead to greater confidence to enterprise buyers.
I don't know much about how smart a purchase Autonomy is (was?), but I do know that IBM has been acquiring data companies like crazy over the past 3 years.
when the prospect asks about company stability, size, and governance, this always signifies they are about to ask for a formal contract.
This is absolutely the case. But people still don't even bother asking about HP (same as IBM & Oracle & Microsoft & SAP). It's just not an issue at all at the moment.
I have at least some first-hand evidence to this fact. $DAYJOB is currently at a large enterprise service provider. We are currently buying HP switches like crazy, and I don't expect that to change. I've also been privy to some aspects of the sales process. We can go through the sales song and dance forever and ever, going deeper and deeper in to technical and business details. However, when the prospect asks about company stability, size, and governance, this always signifies they are about to ask for a formal contract.
In other words, for big, enterprise customers, stability matters. It's impossible to tell what sort of effect this will have on HP. Maybe none. But these sorts of subtle changes to reputation have a funny trajectory of their own, independent of the instantaneous news cycle. I wouldn't be surprised if IBM et al. started using the shake-up to their advantage during the sales process. We very well might see some of the after-effects in the next six months.
The way HP handles this transition will be critical. If the board looks like they are floundering, I think they will be toast. If they can keep up the appearance of running a tight ship, they'll be alright.