Hewlett-Packard units regain control of company operations

HP claims company restructure will simplify relations with partners and customers

Hewlett-Packard (HP) has claimed its latest restructure will benefit channel partners by reducing another layer of complexity when dealing with the vendor.

Last week HP axed its Global Operations division, which handled company-wide functions such as logistics, purchasing, marketing, CRM and supply chain management. Instead each division within HP, such as its Personal Systems Group (PSG), Technology Solutions Group (TSG) and Imaging and Printing Group (IPG) will now handle its own affairs, giving them full independence.

In a statement, Mark Hurd, HP chief executive, who has practically reversed every move made by his predecessor Carly Fiorina, said: “This realignment will enable us to build on this momentum, enabling greater focus and customisation of operations.”

Gary Allden, head of corporate communications at HP told CRN: “It makes sense for the different functions to move into each individual business unit. It makes the company simpler, flatter and less complex for both our channel partners and customers. It is a move geared towards growing HP.”

Allden said the vendor is going through a “period of growth” in the UK and is taking on additional sales staff.

Kieran O’Connor, external sales manager at HP VAR acs welcomed the move: “We have already seen some evidence of this and get great service from each of the divisions. HP is being extremely proactive with us and we are reaping the rewards from this approach.”

Alastair Edwards, senior analyst at Canalys said: “This will bring control back to individual business units and will give them the power to handle their own strategy. The way it was structured before was too complicated and meant HP had lost touch with a lot of their customers and partners, and the company became too bloated and overblown. I think it is a very positive move by HP.”

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