H-P Bets on the Cloud

Hewlett-Packard designed and built its first computer in 1966. Has it designed and built its last?

Various Wall Street sources are reporting today that the world’s second largest electronics company will spin off its PC unit in order to concentrate on servers and services. If true, it marks the end to an extraordinary era — one that saw H-P race neck-and-neck for years with IBM and Digital Equipment in the mainframe space, then after falling behind Dell in PCs, snatch up Compaq in a move that was generally panned but turned out to be a masterstroke.

Still, over the past several years PCs  became an ever lower-margin business filled with low-cost competitors. Moreover, the emergence of shared-server computing — aka, “the cloud” — posed a threat to those who poured resources into branded laptops and desktops.

It says here this move is H-P’s way of saying that it, too, believes cloud computing is the future, and the money to be made will come from selling the heavy-duty hardware, not billions of “dummy” terminals that are hooked in to it.

Handing Over the Reins

Great article in this week’s Newsweek by Yale dean Dr. Jeffrey Sonnenfeld recapping the struggle a technology innovator has in ensuring his or her vision lives on after he/she leaves the scene. Key quote:

How do you maintain the DNA that the founders have imprinted into the business? … Time and again, they share a disdain for any distraction about their own mortality. Like monarchs, they often believe they can and should reign as long as they live.

One nit: While this tale of hits and misses among ground-breaking tech companies (Apple, Digital Equipment Corp., IBM, Polaroid) makes for a fascinating trip back through time, Dr. Sonnenfeld doesn’t save much discussion on how to properly prepare your own bench for someday manning the ship.