Hurd to Be Available To Partners

Hewlett-Packard (NYSE:HPQ) is offering its partners the prospect of a date with Mark Hurd.

One of my customers met with Hurd a couple of months ago. The meeting went very well.

HP, to me, has never been known as a "supreme" marketer. Well, let's just say that their marketing is no equal to their engineering prowess. They are very good engineers and creators of product(unlike Dell).

Hurd's attitude seems to be, "get out there and sell...!" which is refreshing and exciting at the same time...

More from the article by Craig Zarley, ChannelWeb


6:54 PM EDT Thu. Aug. 21, 2008
Hewlett-Packard (NYSE:HPQ) is offering its partners the prospect of a date with Mark Hurd.

The company is now formalizing a process to set up face-to-face meetings between solution providers, their customers and top HP executives, including chairman and CEO Hurd.

The strategy underscores Hurd's push to use the channel to extend HP's reach into the midmarket using the channel as an extension of HP's sales force. What's more, Hurd seems bent on using himself and his top lieutenants to help the channel win more business for HP.

Called ExecConnect, the plan allows solution providers to log onto HP's Website and submit a request to meet with Hurd or members of his executive team, said Tom LaRocca, HP's vice president of partner development and programs. "We are giving a structure and a formalization to our executive engagement program," said LaRocca. "In the last 12 months Mark [Hurd] has met face to face with over 100 partners."...

...LaRocca noted that HP now has a person dedicated to setting up the logistics of meetings between Hurd or his executive staff, including heads of the companies three business units: Ann Livermore at Technology Solutions Group, Vyomesh Joshi at Imaging and Printing Group, and Todd Bradley at Personal Systems Group.

"We want to continue to put partners in front of our executives and we want to give them a way to come into this program," he said.

LaRocca said partners can log onto the HP partner portal and submit requests or get more information on setting up meetings with HP executives."

HP's Hurd - Wall Street Journal Timelines the Fall...

In an article by Rubert A. Guth, Ben Worthen and Justin Scheck, at WSJ.COM, new details of the Fall Of Hurd are exposed.(yes, the above is a picture of Jodie, Playboy, 1980)

Even though we are at the tailend of the escapade, the WSJ story is a great summary revolving around the letter sent to Hurd on behalf of Ms. Fisher, from her lawyer, the one and only, Gloria Allred.

Some felt the HP bent Mr. Hurd over, but the seriousness of the allegations apparently made the board stand up and notice.

Ms. Fisher claimed Mr. Hurd revealed to her, HP's intention to purchase EDS prior to publicly announcing - an obvious premature release.

Additionally, Mr. Hurd claims he and Ms. Fisher watched a Minnesota/Green Bay football game, first in the hotel bar and later together in his hotel room. Scurrying off at the "two minute warning."

Well, judging from this shot, she likes Texas, and everybody in Texas is a football fan - correct?

Wow.

Mark Hurd Resigns Following Sexual Harassment Investigation: HOLY CRAP!!!

Hewlett Packard (NYSE:HPQ) on Friday announced the resignation of Chairman, CEO and President Mark Hurd, effective immediately. HP CFO Cathie Lesjak has been appointed interim CEO.

According to a statement from HP, Hurd made his decision following the conclusion of a sexual harassment investigation, in which Hurd was found in violation of HP's Standards of Business Conduct, though not its sexual harassment policy. The claim of sexual harassment was brought by a former contractor to HP, whose name was not provided.

"As the investigation progressed, I realized there were instances in which I did not live up to the standards and principles of trust, respect and integrity that I have espoused at HP and which have guided me throughout my career," Hurd said in a statement. "After a number of discussions with members of the board, I will move aside and the board will search for new leadership"

Predictably, the Hurd Situation is Starting to Get Weird(er)

The lady in questions says there was never any sex. Yes, this is a picture of her, Jodie Fisher.

She is also sad. Sad that Mark lost his job.

Hurd leaves with 40 million - rumors are running all over the 'net - this could be either the biggest fall for that smallest oversight($20,000.) or there is much, much more to all this.

Hurd spent money on dinners/"interviews", one site actually uses the words "canoodle" and woo.

Lobster was served.

It's not Tiger Woods, and it ain't Goldman Sachs, but it is not good at all.

Never, again, should anyone ever question why I use gorgeous women on my blog.

New York Times Article Answers Lots of Hurd Questions

I was going to follow this one pretty heavily.

No doubt, in our industry, this little shake up is rivaled only by the RiKon merger in news worthiness - if not gossip value.

But soon after the separation, more and more information hit the 'net, that gave me pause.

And when phrases like, "nude pics" and "erotic film star" started to show up, well, I just decided to let the story ride, without much comment - you can not make this stuff up!

Printers not sexxy? Bravo Sierra!

From the article by Ashlee Vance, with the New York Times,

"...The company has uncovered communications between Mr. Hurd and Jodie Fisher, the occasional H.P. contractor who accused him of sexual harassment, that seemed cordial, even after a last meeting in a hotel room in Boise, Idaho, a person with knowledge of Mr. Hurd’s e-mails said...

HP sues ex-CEO Hurd over new job at rival Oracle

Hewlett-Packard (NYSE:HPQ) Tuesday filed a lawsuit against former CEO Mark Hurd over potential damages he could cause in his new position as co-president of Oracle (NSDQ:ORCL).

HP alleges in the lawsuit that Hurd, in his new role at Oracle, would not be able to avoid using HP trade secrets to compete with HP, and that "HP has been injured and faces irreparable injury."

More Here.

Five Reasons HP Is OutPerforming The Market

I grabbed this post off of the Blog over at Channel Web

BLOGS
The Channel Wire
November 18, 2008

Five Reasons HP Is OutPerforming The Market

With many technology companies posting disappointing results in the midst of the economic downturn, Hewlett-Packard Tuesday released an upbeat preliminary fourth-quarter forecast.

The world's largest supplier of IT products and services said its expects that revenue for the quarter ended Oct. 31 jumped 19 percent and earnings grew 4 percent. HP shares were up 10 percent or $2.96 to $32.31 in midday trading on the good news.

HP gave no details on specific product segments or geographies but said its revenue for the period ended Oct. 31 reached $33.6 billion, a 19 percent jump over year-earlier sales. For the year, net revenue was up 13 percent to $118.4 billion. The sales figures exclude the impact of HP's recent acquisition of EDS.

Here are five reasons HP is outperforming the market.

1. HP CEO Mark Hurd

He isn't infallible or the new Messiah, but he is pretty darn good. He's made a string of key acquisitions this year, capped off by EDS and LeftHand Networks. But his most important trait is that he's constantly visiting and listening to customers. And he keeps his closest counsel with his biggest customer: the channel. Hurd regularly makes one-on-one visits to solution providers both large and small. He asks questions. He listens. He motivates. No other CEO of a major technology company keeps as close to the channel as Hurd.

2. HP's Diverse Product Portfolio

From the desktop to the data center. From printers to routers. From network management to asset management software. HP products span the technology spectrum. At $118 billion, this is truly a one-stop shop. And now with its $13.9 billion acquisition of services giant EDS, HP has the people power and services muscle to do it all. Take note that even with the biggest and broadest portfolio in the business and a boatload of services people, HP embraces the channel. Bottom line: HP gets that it's a solutions game. And solutions means channel.

3. Committed Channel

HP has worked hard over the past several years to hone its channel strategy to focus on a mutually profitable relationship with solution providers. It hasn't always succeeded or delivered on its promises, but it's shown a willingness to fix things on the fly rather than letting channel problems fester. it is the biggest and yet it is the most channel-cognizant. One big reason is that Hurd views the channel as an extended sales force. He understands sales and he wants his partners out there in the front lines winning over new customers.

4. Maniacal Focus On Profitable Growth

No other company right now has a sharper focus on profitable growth than HP. Hurd is closing out his fourth year at the company and his drive and determination to do things more efficiently and profitably in everything HP does has resulted in a new and more inventive HP. That "profitable growth" mantra has everyone at HP working toward a common goal. It's a, 'Hit your number or hit the road,' proposition. That is a good thing, especially as we come into what looks like the worst economic downturn since the Great Depression. Look for HP to buck the trend and beat the bad news blues.

5. Full Speed Ahead With R & D

Based on his long list of acquisitions, some observers might think Hurd's R&D budget consists in snapping up smaller, innovative companies. Not so. HP has remained on top of the technology heap in part because of its willingness to invest in product innovation. The company's multibillion-dollar R&D effort and the company's cultural legacy of building better products is a huge differentiator. HP products are more often than not better engineered, designed and performing than the competitive product sets. Take Blades. "Blade everything" isn't just a marketing slogan at HP; it's a technology commitment.

---------- End Post ------

Points 1 and 3 resonate- Hurd and the Channel, great combo...

HP IPG folding into PSG? Someday, HP Won't Sell Printers

10/6/2009

Back in April, I wrote a bit about an issue that was, at the time, unthinkable.

In my article, Is Hurd funding IPG's Demise with IPG's Revenue?, we briefly explore the possibility that Hurd's restructuring of HP into a full, IT services company, is being funding from IPG(printer) profits.

The irony being that one day, HP will not sell printers.

Ludicrous, inconceivable?

Add it up:

Expected HP growth somewhere around 3-5%, with MFP growth at only 2%

Five years ago, HP's PC unit was losing out to Dell, and barely making a profit, today HP is the leading PC provider in the world

IPG growth has been over shadowed by PSG and other growing sectors of HP's galaxy

MPS programs supported by distribution partners, not "home grown" except for Enterprise accounts

Edgeline

EDS purchase

Mark Hurd

Canon Alliance

And who is Todd Bradley?

Indeed, if this is true, if the LaserJet is destined to follow OS/2, the next move we may see is an "enveloping" of IPG into PSG.

CrazyTalk? Oh really?

"...Earlier this week, The Wall Street Journal reported that Hurd is considering a plan to fold the printing business into Bradley's division. HP executives have declined to confirm or comment on the report, which the Journal attributed to unnamed sources..."- Mercury Hews

Here is the blip.

More from the Mercury News article:

"...As businesses shift to electronic records, some analysts believe they will print less on paper. Many consumers, meanwhile, are increasingly viewing Web-based material on their laptops, smart-phones and portable devices, without feeling the need to print.."

This is big - But what about Joshi?

The Mercury News article, here. A very good read.

In an article by Bob Evens, Information Week, he hearkens the same tone - HP needs to stake it's flag and the colors won't simply be printers/output:

"...Hewlett-Packard's got all the pieces to become just about whatever kind of company CEO Hurd wants it to be, and while that vision has yet to be fully expressed, the imminent merging of its PC business with its printer business is a huge step in the right direction. Because while both of those product lines are massive and are among the top reasons why HP's annual revenue of about $120 billion tops that of any other IT company, PCs and printers are simply not going to serve as the strategic platforms that define HP's future and its enduring value to enterprise customers..."

IBM, at one time, sold laptops, PC's and printers...

The 10 most influential leaders in business technology in 2008

Last year he was "left off the list"...oh what a difference a year makes!

Jason Hiner, Editor in Chief over at TechRepublic, in his blog listed his Top 10 Leaders - it's an interesting read.

Number one with a "bullet" -

"1. Mark Hurd, Hewlett-Packard

Last year, I left Mark Hurd off the list and even remarked that Carly Fiorina deserved a lot of the credit for Hewlett-Packard’s resurgence because its roots are based in the HP-Compaq merger, which Fiorina had the guts to do. But, it becomes clearer every year that Hurd is making the right calls and motivating the various HP divisions to execute. HP is back on top in the PC market (having overtaken Dell), it is tied for the lead in servers with IBM, and it is even making strong moves in the networking market with its ProCurve gear. Plus, it bought EDS in 2008 to expand its footprint in IT services. All of the while, it has allowed its incumbent printer business to quietly take a back seat. That’s why HP is doing so well, even in the face of economic headwinds, and that’s why Hurd deserves the top spot on this list."

And I found this post over at MediaWireWeekly from February, 2007 - "...He barely makes appearances, not to make a statement, but because he is actually huddled with his management team working..."

Not bad, I doubt Hurd even cares which is cool too.

Mark Hurd Hired by H-P Rival Oracle

Oracle Corp. named Mark Hurd co-president and appointed him to its board of directors, heightening the rivalry between the software company and Hewlett-Packard Co., the technology giant Mr. Hurd ran as chief executive until departing amid a scandal last month.

HP to acquire EDS for $13.9 billion

That's FOURTEEN BILLION...

HP said the deal, which has been unanimously approved by the HP and EDS boards of directors, will close in the second half of the year. HP expects that the addition of EDS will more than double HP's services revenue of $16.6 billion in fiscal 2007. At the end of 2007, HP and EDS had a collective services revenue of more than $38 billion and 210,000 employees, doing business in more than 80 countries, HP said.

Well, this certainly illustrates the level of HP's commitment to market domination

I found this statement by Peter Cohan, "...I think HP's most profitable business, printers, might be able to make better use of the $12.8 billion in capital. This Imaging and Printing Group earned a 13% estimated net margin. It grew a mere 4% to $7.3 billion in revenue and given that this unit is by far the most profitable in HP's stable of businesses, this would appear to be the best place to invest for future growth.

Now may be a good time to sell HP stock. Mark Hurd came into HP as a nuts-and-bolts operator. This deal suggests that Hurd has run out of growth options and that HP can't grow earnings through more cost cuts. I have no doubt that Hurd could cut costs once EDS has been integrated..."

This follows what Hurd said back in March, ""We are shifting our portfolio to drive growth and are aligning our portfolio to margin rich opportunities for investors," he said. "We continue to look for opportunity [for higher gross margins] in software and in services."

What does this mean for IPG, if anything? I don't know yet, but IKON sure as heck would not cost FOURTEEN BILLION dollars...

Loyalties...

HP is looking for a few good VARs and continued Loyalty from their existing VARs. The challenge seems to be converting resellers with IT Service mentality into a “copier-type” mentality. Additionally, converting “copier-centric” resellers into HP minded, analytical partners, is a severe mind-shift.

In this space, HP has become all too familiar to forwarding leads to the “copier” guys and having the lead mysteriously converted into a Canon or Ricoh sale – or even worse, standing with a reseller in a Managed Print Service deal and watching the supplies orders dwindle to nothing as the reseller converts their customer from OEM supplies to third party.

Supplies – the “Holy of Holies” for HP is the Untouchable Goose – and HP needs those Golden Eggs to keep dropping.

And as much as this is an economical, sales and marketing issue it all seems to boil down to loyalty with HP. A bit naive? Yes and reality.

Quote:

"We need quality partners," Hurd said. "If we have partners that can't get it done, I don't want them helping us. I don't need bad partners. I need good ones. I need great ones. I need ones that will help us slay some dragons. I want some that can go help us compete. I want some that are willing to put skin in the game and willing to be just as consistent, just as simple, just as excited, just as fired up as we are. And if they're not, they should go partner with 'insert name here,' some of our competitors, and mess them up.

"And if all they want to do is whine about channel compensation, and they want to do the same thing they did 10 years ago and get paid more for it, go find some other place to partner with," Hurd continued. "If you want to get on the cutting edge and kick some butt and go get something done, then come hang around with us."

If you're a channel partner with anyone, even HP, read that again - do you feel the tone? This guy turned HP around in 3 years. He has the legitimacy to say this, to mean this and to not care what people think about it.

APC- Vegas

Hurd also said regarding the Americas Partner Conference:

"I didn't want to miss this because you are so important to us," said Hurd, who spoke in a hoarse voice. "You are an extension of Hewlett Packard. Being here is a big deal to me and I want to make sure you knew that."

We were there. We believe we are an extension and loyalty goes both ways.

The Word From Hurd: IPG Growth Includes Wal and K*Mart

One word kid, one word..."Kiosk...Kiosk...Kiosk..."

Ok, that's three words.

I have seen the future of Edgeline and it is at K*Mart.

HP's notorious inventory challenges are reportedly behind them, and 2010 looks to be a year of "recovery...and attack..."

IPG is leaner, meaner and looks "...to drive further share in installed base gains with double digit printer unit growth in Q1..."

Hurd's remark about IPG expansion around "100's of photo kiosks..." piqued my interest.

Somebody, somewhere, somehow, is manufacturing EDGELINE engines. The Final Destination just isn't a department in your corporate accounts, it's underneath a blinking, blue light, in isle 13.

Hurd-

"...IPG is poised for recovery and is getting on the attack. As we enter fiscal year 2010, the headwinds in channel inventory are behind us. We expect supplies growth to improve with economic trends, and employment levels and project a flattish result in Q1.

Demand is also improving for our printers.

We gained share sequentially and we expect to drive further share in installed base gains with double digit printer unit growth in Q1. Due to improvements in our cost structure we can do this while remaining within the 15 to 17% operating margin that we laid out at our analyst meeting in September.

IPG is also gaining significant traction with its growth initiatives. We deployed hundreds of photo kiosks this quarter at Wal-Mart and look forward to further expansion in 2010.

Recent studies released by market analysts highlight HPs leadership in managed print services with more signings than any of our competitors. We're encouraged by our Managed Print Services funnel, which is at record levels, these deals are generally for multiple years and have a high attach rate of supplies.

In commercial print the analog to digital page shift is occurring and we are leveraging our technology to accelerate the transition. Partnerships with industry leaders like Pitney Bowes, RR Donnelly, and web press purchases from communication leaders, Omnicom demonstrate the power of our portfolio and capabilities. We expect you will hear more partnerships from us shortly.With our significant market leadership and broad patent portfolio, we are well positioned to capture this significant page opportunity..."

For a good re-cap, check out Jim's blog, here.

HP Q4 ConCall with Hurd

Conference call on the 17th, with Hurd and Kathryn Huberty...highlights.

Summary - Fourth Quarter Highlights

Revenue totaled $33.6 billion, up 19% year-over-year or up 16% in constant currency from $28.3 million in 2007.

- The firm generated 68% of its total revenue from outside the United States, revenue in EMEA was up 22%, the Americas increased 17%, and Asia-Pacific increased 14%.

- Gross margin was 22.9%, down 180 basis points from 24.7% one year ago, driven primarily by the addition of EDS, which reduced gross margins by 140 basis points and, to a lesser extent, by a more normalized impact from commodity pricing compared with a year ago.
-----

- Imaging and Printing reported revenue of $7.5 billion, down 1% year-on-year as supplies revenue growth of 9% was offset by declines in Commercial and Consumer hardware revenue of 10% and 21% respectively.

- Operating margin increased 100 basis points to 15.5% as strong Supplies growth and cost reductions were partially offset by discounting.

- The firm gained share while total printer units were down 8% and Consumer and Commercial printer hardware units declined 8% and 9%, respectively.

- Revenue in HP Software grew 13% to $855 million and BTO outgrew its primarily competitors, increasing 15% from the prior year.

- Other software, which includes Open Call, Business Intelligence, and Information Management, grew 1% as the strength in the information management business was offset by declines in Open call.

- Software posted operating profit of $195 million or 22.8% of revenue.

- HP Services, with the addition of EDS, doubled its revenue to $8.6 billion and reported solid operating profit of $920 million or 10.6% of revenue.

- For the period between the August 26 acquisition date and October 31, EDS delivered revenue of $3.9 billion as customers across all regions continue to respond favorably to the combined services business.

- Demand remains solid, with a healthy mix of new and existing customers and integration plans are on track as the firm eliminated over 2,300 positions in connection with the EDS integration.

- HP Financial Services had revenue of $691 million, up 5% year-over-year, and generated operating margin of 7.4%.

- The firm continue to apply the same rigorous process for assessing the creditworthiness of its customers and the quality of its receivables.

Fiscal 2009 Outlook:

- The firm expects revenue of approximately $32 to $32.5 billion in the first quarter and approximately $127.5 to $130 billion for the full year.
- It plans to cut over $1 billion on a constant currency basis from the cost structure in 2009.

Brian Alexander (Raymond James): In IPG, what''s happening to the installed base in Consumer and Commercial hardware in light of the unit declines?

Mark V. Hurd:The installed base is staying installed longer. That''s clearly what''s going on and you can see us gaining share. We believe our installed base is sort of - depending on what country and what segment and what price category - we believe we''re doing quite well.

Certainly, you''re seeing a trend towards wireless in the home, which in some cases has fewer units doing just as much printing as the home used to, so for us, that''s not necessarily a bad answer. We sort of like the answer, where we can sell less hardware to effectively print as much as the ecosystem has been printing.

We have to be cautious here because when we get too aggressive on price, in many cases we''re accelerating the movement of our own installed base. The reason we put the installed base out there is to print. So for us, lower unit growth is not necessarily bad unless it means we''re losing share.

Catherine A. Lesjak: As long as people continue to print on HP printers so that we have a healthy installed base, having them hold on to their printers longer and delay upgrading is actually positive for earnings for us.

They are buying the same amount of supplies and we are not having to make that kind of next investment in terms of placing a hardware unit that’s either at a negative margin or at a very low margin.

The Death of Printers: I've Been Saying It For Over a Year - HP Will Not Be Selling Printers

In an article by Jon Fortt, at Brainstorm Tech, HP's Bruce Dahlgren illustrates a future without printers; without printer sales people.

Indeed, Jon's article, title, "The death of a (printer) salesman" is ominous.

If not a bit cosmic.

I had a conversation the other day with an MPS Visionary who is starting to think that not only is MPS changing the copier channel, it is changing the Selling Model - Wow.

As sited here on DOTC, the shift has been underway from copier sales to more Business Acumen ever since MPS got "hot".

Here is the article, enjoy.

The death of a (printer) salesman
Posted by Jon Fortt, senior writer
March 30, 2010 7:00 AM

"In the near future, most big businesses won't actually buy printers. The shocker: HP is looking forward to that.


Enterprise printers aren't going away. But soon, most big companies will pay for the output, not the box. Photo: HP.

Bruce Dahlgren's job at Hewlett-Packard is to sell printers to big customers. Well, sort of. During a recent huddle in a conference room at Hewlett-Packard headquarters in Palo Alto, he was talking about what will happen when big customers stop actually buying printers.

Sound unthinkable? It’s not. Rather than purchase equipment that gets old and breaks down, these days a growing number of companies would rather let someone else own and manage the office copiers and printers — make sure they’re up-to-date, stocked with supplies and arranged in the most efficient way — and instead just pay for the work the equipment does. The model is called managed print services, and it’s all the rage.

In fact, it’s a big part of the reason Dahlgren is at HP (HPQ) in the first place.

Soon after HP CEO Mark Hurd arrived at the company five years ago, he recognized that the vaunted imaging and printing group wasn’t doing a great job with large businesses. Part of the problem: IPG executives were used to marketing to consumers, and lacked deep experience in enterprise sales.

Vyomesh Joshi, the printing group’s executive vice president, once told me that it was humbling, but he realized he needed Hurd's help to turn things around.

In a controversial move, Hurd brought in Dahlgren, a former colleague at NCR (NCR), to lead the enterprise printing business and spearhead managed print services. (Because of a legal dustup with previous employer Lexmark (LXK) regarding a non-compete agreement, he had to take some time overseeing Europe before settling into the role.) Since then, Dahlgren has been scrapping with the likes of Xerox (XRX) for share in the market.

So far the services business has grown to the point where HP manages 19 billion pages per year. The total value of all managed print services contracts stands at about $5.5 billion. Revenues have recently gotten large enough that HP executives review it separately from the other printing operations.

A race to print money

The spoils of the managed print services war should be considerable. Photizo Group, a research firm, estimates that by 2013 it will more than double into a $60 billion global market, and more than half of all enterprise printing devices will be under a services contract. Dahlgren says that today, only about a third of HP’s enterprise customers have begun using managed print services at all, and another third are evaluating it. “So I don’t shy away from a $1 million contract,” Dahlgren says. “Because I know that once we get in there, this thing really expands.”

In this environment, the company that locks up the most market share could eventually wield decisive influence over which enterprise printer and copier brands thrive. If HP wins, it gets to eat a big piece of Xerox’s business. If Xerox wins, it gets to do the same to HP.

So it makes sense for the printing giants to jockey for market share grab now, especially since businesses don’t want to buy equipment anyway and companies like HP can promise coveted cost savings from switching to the services model. But what happens when that stage is over, and investors still want profit growth in the imaging and printing segment?

Dahlgren has an idea of how it might work. He offers a customer as an example: HP had begun managing most printers and copiers for a hospital when someone noticed that the station for printing the hospital’s ID wristbands was located right near the admissions station. That would make it possible to print each patient’s picture, in color, right on the wristband.

Not only would it make it easier for hospital staff to check them, it would add a valuable layer of security. And in the print services contract, HP can charge more for the new wristband-printing service — similar to the way the cable company charges more for premium channels. Says Dahlgren: “Wouldn’t it be cool — we’re not there yet — but wouldn’t it be cool if when a doctor printed out a patient’s information, there was actually a picture there?”

It would be cool. And apparently profitable for HP, too."
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Click to email me.

The Printer and Copier Sales Decline in UK is "Over": Hurd's Word Tempered

Just over 1 million multifunction printers and standalone printers and copiers shipped during the 3rd quarter, in the UK.

This is down 3% from a year ago, but is not as bad as the 22% and 30% tumbles in the German and French markets, Gartner said.

Tosh Prabhakar, senior analyst at Gartner, was downbeat about short-term growth prospects.

"I cannot see things dramatically improving in the next six to nine months. The hardware is very mature and there are no compelling technologies that will drive the market forward," he said.

Remember Hurd's Words during HP's fourth-quarter financials meeting; he forecast a significant rebound in sales as companies upgraded ageing technology.

Pent up demand may lead to a call to that 800 number,(have you tried flicking it?).

Indeed, if Hurd's word is true, the inventory challenges of the LAST FOUR MONTHS, may be behind us by February, releasing the flood gates and fulfilling months of backed up orders.

Thus, resulting in an apparent, yet manipulated, rebound.

Not that there's anything wrong with that.

Source article here.


By the way, if you get the reference to "flicking" it, drop me a line.

A Week In The Life of Managed Print Services

June 2008.

One thousand miles and so far, yet to go.

Day One Victorville, California

Pre-Proposal Meeting - To review an RFQ for a small (30) fleet of copiers. Imagine if you can, a room full of copier people, all of them competitors asking questions relating to an RFQ. I sat in the back of the room and bit my tongue so many times I still talk with a lisp.

I swear, the copier guys still don't get it - but unfortunately, I don't think the prospective client gets it either - so it could be a match made in heaven for someone other than me. No worries.

Day Two - Santa Barbara, California - Initial Client meeting and printer fleet survey -

Ok, this is the "eat your heart out" part.

The drive to this client takes me past the Rose Bowl - yeah, the one you see around New Year's Day when Michigan comes out here and loses. Seeing the stadium always kindles something inside me - I remember watching the Rose Bowl on TV in Michigan looking at the sun and the short sleeves and shots of the bright, warm beach. Then looking out my window at the cold, post-x-mas, snow. LOL!

And then I remember the drives into Detroit or Flint in February - these cold, delayed stress-inducing visions are scattered as the turn in the road reveals the shimmering sunlight dancing off the Pacific Ocean! (yeah, that the Pacific Ocean).

Up the PCH to talk about Managed Print Services. 

The meeting is with all the right people - C-Level, facilities, operations.

During the meeting, I was instructed to "just inventory the fleet, so I can get a handle on what we've got here". Simple.

Same Day - Onward to Diamond Bar

Stopped in to review an Edgeline install. The client is 'stuck in a lease for a Konica - the Konica has never performed to spec, and for the last few months, prints with a "pinkish hue". Unfortunately, most of the reports printed are customer-facing documents reflecting important and revenue-generating information.

The lease has around 20 months on it still and of course, there is no easy way out. So the client is taking the Edgeline and moving the Konica off to the side as a backup that will act as a reminder to never do business with a copier dealer again...delicious.

Day Three - Imperial/El Centro, California. Four miles from the Mexican border.

Driving past the Windmills - you've seen them on MI:3 and many other movies and to the 86. The highway winds through the desert next to the Salton Sea. Point of fact, the Salton Sea was formed by accident; I have never seen swimmers in or boats on the Salton Sea.

I am currently engaged in a study of approximately 30 machines. This is a Mini-Assessment - a partial look at a subset of 400 copiers and nearly 100 single-purpose laser units. At the first look, we may be able to save 10's of thousands of dollars the first month after initiating a program.

Day Four - 210-bed Hospital - Mini Assessment

Meeting with IT director to interview and survey two departments. We end up looking at 4-5 departments and discussing strategy - the appointment takes 3 hours. Interviews with nurses uncover volumes of issues some out of scope but influential on the overall possible Managed Print Services project.

Primary findings indicate an "over-exuberance of selling prowess" in the last copier salesperson's delivery. The current fleet is over spec'd and underutilized - and machines are just too big(physically).

Same Day - The Hurd Meeting
After spending time at a local Starbucks sending emails and making phone calls, I head out to Hollywood(yes, that Hollywood) to meet a colleague before he meets with Mark Hurd and one of my clients.

We decide to meet at the Beverly Hills Hotel(yes...the hotel that inspired the Eagles', Hotel California) in the bar, The Polo Lounge.

Point of Fact: The Beverly Hills Hotel was built before the city and the city was named after the hotel. The hotel is nestled in a residential area and is the heart of the city.

The Polo Lounge is world-famous - with celebs sipping Martini's almost daily. It's four o'clock in the afternoon - ordering a Martini I ask the bartender to "surprise me" - she delivers the best adult beverage I have had to date - I have no idea what is in it. Prior to walking in, I had never heard of the Polo Lounge - I am such a cad.

My colleague walks in and promptly orders water - oh 0h - I tell him, "don't feel uncomfortable with me drinking a Martini", he responds, "Please don't feel uncomfortable with me ordering water." we laugh and get down to business. We are reviewing the RFQ from our meeting four days ago.

Same Day – After 5

My client’s meeting with Hurd is concluded and as a special treat, one of my peers has invited a select group to accompany him and our client to the Magic Castle. I had heard of this establishment before – lots of magic, exclusive, club members only, great food, and libation.

But before we meet for dinner, my peer inflicts upon our small convoy “Mr. Toad’s Wild Ride” through the Hollywood hills (Bob Seger). Just when I think all is lost, we pull off into one of those “scenic” view spots. We scramble out, jog up a few steps, and BAM! The view is of the complete L.A. basin.

Starting on the left and rotating clock-wise we first see the Hollywood sign, then Madona’s old house,  Griffith Observatory recently seen in Transformers, the L.A. skyline dominated by The US Bank Tower they blew up in Independence Day, the Capitol Records building that was destroyed by tornadoes in The Day After and over to Century City and Santa Monica the areas destroyed in the movie Volcano.

And now - to the Castle. The dinner was great, the entertainment was world-class and business was discussed – a good time was had by all.

and with that...another week in the life fades to black...Ho Hum…

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HP: Pay Cuts and no 401k - and still the State of California gets Away with Stealing

In a communique dispatched via email, Hurd explains how cutting the base pay for all its employees will soften his conversation with "analysts and investors..." Hurd will take a 20 percent pay cut to his base pay.

Here is the text:

Today, HP announced first quarter results amid one of most difficult economic downturns that any of us has ever faced. I am proud to say that we continue to execute well in this very challenging environment.

We grew revenue 1 percent year-over-year, or 4 percent in local currency, and you need to look at these numbers a little differently this quarter. For the first time in a long time, the dollar was strengthening, so the currency conversion was actually a headwind for us. We also continued to show strong operating leverage with non-GAAP operating profit up 10 percent year-over-year. This was a solid performance, and I thank all of you for your efforts.

But really, Q1 was like a tale of two companies.

HP Services — as a result of EDS and TS — had a strong quarter, delivering virtually all of the local currency revenue growth and more operating profit than any other business. It’s gratifying, because this performance was possible because of the hard work we’ve been doing to restructure those businesses.

When you take HP services out of the mix, it’s a very different picture. PSG had revenue down 19%. ESS had revenue down 18%. IPG had revenue down 19%. In fairness, across IT and even other industries, product businesses are struggling in this economic climate. And we did gain share in key market segments. PSG and ESS gained roughly 1 and 3 points of share, respectively. In IPG, quite frankly, we still have work to do across a number of dimensions like inventory, both owned and channel inventory.

In an environment like this, there’s no margin for error and no tolerance for inaction. To give you a little insight into my world, after we report our earnings, we engage in a dialogue with analysts and investors. They’re going to ask what we’re doing in light of the current environment to right-size these businesses.

The math is pretty straight forward. From a productivity standpoint, you’re supposed to reduce headcount on par with declining revenue. If you believe the environment isn’t going to improve, you should take a bigger cut to get in front of the problems. You can do the calculation, as easy as I can. We have about 100,000 people in our product businesses, with revenue down roughly 20%, and an environment that may not get any better in 2009.

I’ll be asked by investors, “Where’s the job action, where are you taking out this roughly, 20,000 positions?” Well, I don’t want to do that. When I look at HP, I don’t see a structural problem of that magnitude. There are pockets where restructuring needs to happen, and areas where actions will be taken as part of our ongoing workforce optimization process. But at a company-wide level, I don’t believe a major workforce reduction is the best thing for HP at this time.

I think we are fundamentally sound, and when the economy picks up, I want HP to be strong, and to take share and to outgrow the market. I said it last quarter, my goal is to keep the muscle of this organization intact. But we do have to do something…because the numbers just don’t add up and we need to have the flexibility to make the right long-term investments for HP.

So we are going to take action. We have decided to further variablize our cost structure by reducing base pay and some benefits across HP. My base pay will be reduced by 20 percent. The base pay of Executive Council members will be reduced by 15 percent. The base pay of other executives will be reduced by 10 percent. The base pay of all other exempt employees will be reduced by 5 percent. For non-exempt employees, base pay will be reduced by two-and-a-half percent. Additional efficiencies, including changes to the US 401(K) plan and the share ownership plan, will also be implemented. Of course, the implementation of all of these actions is subject to compliance with local laws and regulations. Follow-up communications will detail the timing and the plans in your location.

This does not change our pay-for-performance strategy at HP. If we outperform, and there is a chance we will, then we will increase the total amount of variable pay. In fact, the financial flexibility we’re gaining helps put us in a better position to compete and to win in the marketplace, and fund the bonus program this year based on pre-adjusted salaries. If the company performs well, if our individual businesses perform well and if you perform well, then you could potentially make up the difference with your bonus. I can’t promise you anything, but I tell you…there is a chance…if we get this right.

To be clear, these actions don’t make up for all of the decline in revenues. We’re also benefiting from the tough actions we’ve taken over the last few years. People always asked, “Why are we so focused on getting costs out in good times?” Now…is why that work was so important. We’ve been able to bank some of those savings, and we’re making a withdrawal, which along with the actions we’re taking today, I hope, will get us through this recession.

Again, there are no guarantees. If the environment gets worse, if the downturn lasts longer than we’re assuming, if our performance declines, we’ll have to reassess. But for now I believe this is the right thing for the strength of HP.

I know this is a tough time. But if we get this right, HP can be the kind of company that not only has led, but will extend its leadership. We can emerge from this recession in a powerful position to create value for our customers, our shareholders and our people for years to come.

Thank you.

Mark

HP to cut 24,600 jobs worldwide

US technology giant Hewlett-Packard has said that it will cut 24,600 jobs worldwide...over the next 3 years...

Ok, I don't remember hearing HP say that the aquisition of EDS would mean "business as usual" like the RiKON announcement spawned.

Still, can we see the future of Ikon in this announcement from HP?

Hurd Speaks -

"HP has a strong track record of making acquisitions and integrating them to capture leading market positions,' said CEO Mark Hurd. 'HP now has the broadest technology capabilities in the market to meet customer needs today and in the future,' he added."

Is Hurd funding IPG's Demise with IPG's Revenue?

In a very interesting article by Ned Randolph at NewsFactor, he discusses HP's move into other, non-traditional printing areas like Photo Kiosks and on-demand, uniquely individualized newspapers.

Buried toward the end of the article is a quote from Gary Peterson, a principal analyst with Gap Intelligence in San Diego.

"... the printing industry is a mature one, and there is a movement within HP to use IPG's 18.5 percent profit margin not to grow the printing segment, but move it into IT services, where IBM Relevant Products/Services dominates..."


Peterson goes on, "What we've seen from (CEO) Mark Hurd is that he's very interested in infrastructure Relevant Products/Services services. He wants to slowly evolve HP into IBM."

And they're using IPG profits to power Relevant Products/Services that transition, he said.

"It's really a matter of IPG funding the transitional costs of acquiring EDS and funding how that division of HP grows and succeeds," he said. "They purchased EDS to get a better foothold in the enterprise Relevant Products/Services market."

For example, when IBM approaches a huge company like General Motors, it can give them high-level customized server Relevant Products/Services, software, hardware and support..."

-------

Over the past few months, HP has overtaken Dell in laptops, purchased EDS and is actively working with Intel and the G6 - CISCO is getting into servers now as well.

It isn't like HP is going to leave the printer and output space completely, just come at it from a different direction.