What Disruption Looks Like!
With HP's early announcement of results that beat the market today but guided reduced earnings going forward and tough times ahead, I thought about the creative destruction in the market. On CNBC this morning, Leo Apotheker (see video) only referenced Japan's impact on the printer business, strategic shifts in Services and Consumer PC slowdowns. In reality, like RIM (Blackberry), MSFT and Nokia, HP is being disrupted.
So here it is in pictures:
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As reflected in the stock market (ouch):
My partner Bill Gurley has written extensively about the Android freight train, the impact of tablets particularly on consumer PCs is becoming obvious to everyone but I think under-appreciated for HP and perhaps IBM is the impact (worth reading) of the consumerization of IT on the services business at HP and IBM. This is a massive structural shift that implies simpler services, less integration, self service and individual buying initiatives (not IT) and more web services or cloud solutions. HP is in the PC business and being disrupted by Apple and Android tablets. They do not play in mobile in any meaningful way, where more content consumption and computing is happening and the enterprise is changing dramatically. Disruption is upon us.
posted by Michael Eisenberg at 6:34 PM
2 Comments:
Interesting point on the consumerization of enterprise IT purchasing, a trend that most big companies, including IBM and HP and SAP have noticed for some time. Companies often have multi-tiered strategies for dealing with it- fighting it, enabling it, or even adopting it themselves.
Enterprise social networking is another impacted trend of this.
And the best evidence is the AAPL/MSFT relative market value trends over the past 18 months.
Interesting point on the consumerization of enterprise IT purchasing, a trend that most big companies, including IBM and HP and SAP have noticed for some time. Companies often have multi-tiered strategies for dealing with it- fighting it, enabling it, or even adopting it themselves.
Enterprise social networking is another impacted trend of this.
And the best evidence is the AAPL/MSFT relative market value trends over the past 18 months.
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