Will Oracle make a move to help HP? – Part 1

The beleaguering Hewlett-Packard’s stock prices are on the downward slope since last year and one of major reasons is the lacklustre output in the enterprise software solution market that is mostly governed by the likes of Oracle and Microsoft. However, the company is also facing tremendous pressure in hardware department as Oracle’s acquisition of Sun Microsystems a few years back is becoming a nightmare for HP.

The moment of truth has arrived and the best solution in the eyes of both technology experts and maestros at the Street is its acquisition by a bigger fish in the pond, and the most suitable candidate to take up this challenge is Oracle. The two most unlikely partners with a past that both will never remember should set up a meeting to discuss the term at least despite the outcome.

However, Larry Ellison, the CEO at Oracle might have not even thought about it, but circles in America are pondering on it. There is quite a possibility that any one of the parties might make a move to help; in the current scenario it would be Oracle.

HP’s board booted out Leo Apotheker as chief executive officer and replaced him with former eBay chief Meg Whitman. HP dumped its effort to turn Palm into a key part of the business. It floated, then killed, a proposal to spin off the PC business. A little reluctantly, it closed the $10 billion deal to buy Autonomy that Apotheker had engineered.

Whitman recently hinted strongly that layoffs are coming; she has said point-blank that the company’s cost structure is simply too high. And today, sources confirm, HP will announce a reorganization that will combine the company’s PC and printer businesses under Todd Bradley, with long-time printer exec Vymoesh Joshi headed out the door.

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Posted by Usman Khalid on Mar 24 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.