For new Hewlett-Packard
Speaking yesterday at an investor conference, Apotheker said cloud computing would play a big role in the company's strategy from here on. "Yes, HP is strong, but we also recognize that the world around us is changing faster than ever," The New York Times quotes Apotheker as saying.
He's right about that. The world is changing, fast. Cloud computing specialists are growing at a tremendous pace. Among the principals, salesforce.com
The message? On-demand alternatives such as salesforce.com and NetSuite
Apotheker also plans to bulk up HP's offerings in business analytics, The Times reported. Apparently he views analytics as an open market with no clear leader. "We are not playing catch-up to anyone, particularly IBM
Uh-oh. Big Blue is far ahead of not only HP but also many others when it comes to analytics, having acquired Cognos, Netezza, and SPSS in recent years. There's also Teradata
Color me concerned. Much as I like that Apotheker sees a need for HP to modernize, wishful thinking doesn't equal a strategy. Right now, that's all he has. I'm sticking with the short thesis I first offered in October.
Do you agree? Disagree? Let us know what you think about HP's assets and Apotheker's strategy using the comments box below.
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Editor's Note: This article has been changed to reflect that IBM acquired Cognos, not Business Objects. The Fool regrets the error.
Fool contributor Tim Beyers is a member of the Rule Breakers stock-picking team. He owned shares of IBM at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool owns shares of IBM and is also on Twitter as @TheMotleyFool. Its disclosure policy is analytically inclined.