HP's IPG, PC Units Merger Positions ex-Palm CEO as Potential Future CEO

From DailyTech: Hewlett-Packard Comp. (HPQ) is one of the oldest PC companies in existence. It was founded in 1939, when the "personal computer" was just a dream in the minds of science fiction writers. And despite recent "turbulence" (to put it lightly) HP remains the largest seller of traditional personal computers.

Now, according to an Bloomberg report and All Things Digital report, HP's new CEO Meg Whitman (the CEO who guided eBay, Inc. (EBAY) in its formative years) has ordered a critical move -- the consolidation of HP's "Imaging and Printing Group" (IPG) and "Personal Systems Group" (PSG), into one super-group. The decision could help revive the struggling IPG. It also gives a crucial commitment to the PC business which was once subject of spinoff plans.

First, it is seemingly nonsensical for two units who operations go hand-in-hand so neatly would operate like separate, independent fiefdoms.

At the time of the potential spinoff, I remember talking to PSG executives at HP and was met with nonchalance and reassurance that it was "business as usual" (quote) from their perspective and they foresaw "no disruption" (quote) to their customers. While some of that might have been feigned, I got the feeling that they were serious -- HP's units essentially operated entirely autonomous of each other, a highly dysfunctional setup.

Second, Mr. Bradley has consistently been lauded by various business publications for his sharp performance and leadership. He rose to fame as CEO of Palm and exited to the competitive PDA maker just at the start of the smartphone era. His dynamite tour at Palm was complemented by years of success with the PSG under Mr. Hurd. And Mr. Bradley deserves plenty of credit for holding together the PSG and sales during the uncertain Apotheker-era.

Ms. Whitman's solution is a wise one -- kick out Mr. Joshi (he's leaving the company though it's unclear whether he's quitting, retiring, fired, etc.) and put veteran leader Todd Bradley -- PSG chief -- as Executive Vice President of the merged unit.

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