HP chief Meg Whitman lauded for U-turn on PC strategy

HP has been on something of a rollercoaster ride this year, with two different chief executives and huge confusion over the future of one of its most notable divisions, the Personal Systems Group (PSG).

Only two months ago, then chief executive Léo Apotheker announced plans to spin off the division, while buying Autonomy for a whopping $10bn, in a move that shocked many in the industry.

Clearly HP board members were not happy and, in a clean and precise power coup, Apotheker was booted out and replaced by Meg Whitman, who has set about righting the wrongs of her predecessor's short-lived reign.

The decision not to ditch the PSG division has been her first major move, and Ovum chief analyst Carter Lusher suggested that the decisiveness of her actions will be welcomed by those used to dealing with HP as a long-standing supplier.

"The announcement by now former chief executive Léo Apotheker that PSG was undergoing a strategic review and could be sold or spun off was an unmitigated disaster," he said.

"Whitman is demonstrating that she is not hesitant about reversing Apotheker's decisions and will act swiftly. These are two characteristics IT executives welcome as it shows she might be able to stabilise HP and return it to its previous status as a strategic supplier to IT."

Mark Fabbi, vice president and distinguished analyst at Gartner, told V3 that the move by Whitman is sensible and strategically sound, and just what the company needs after the unimpressive tenure of Apotheker.

"The market isn't looking for brilliance from Meg, but just solid execution and decisiveness. While Apotheker had some worthwhile strategies (invest in emerging software) he clearly didn't have the operational capabilities to execute these ideas," he said.

"That, combined with the waffling on webOS and the non-announcement about PSG, was his undoing. So a quick decision on PSG was an obvious first step, and keeping it was the easiest and financially most attractive option."