HP delivers first earnings report post-Fiorina

TalkBack 1 of 3:

Next »

• Thread View
• Flat View

HP and services.

Okay, here's your business decision for the day.
You've spent a lot of money to imitate a competitor far ahead of you in a highly profitable part of your market. This part of the market is people-intensive, relying on connections between provider and buyer. Your results are improving and apparently promising. However, your profits are currently low because people costs are significant.

So, your choice:
Do you slash and burn this part of your business to reduce the people costs?
You do if you're HP. You feel able to call up analysts and purr to them how many lives you've been able to dislocate severely.
You and the analysts do not ask how much harm has been done to the business's growth prospects. Reducing the number of people wiorking for you is far more important than making a profit on actually doing work.

Remember the old Russian story about the woman who threw her children from the sled to the pursuing wolves? Eventually she ran out of children, and she'd long since run out of sympathy. So we root for the wolves.
Hi, Carly.

Posted by: Anton Philidor   Posted on: 02/17/05 You are currently: a Guest | Members login | Terms of Use

Alert moderator to an offensive message

Subscribe to this discussion via Email or RSS

SponsoredWhite Papers, Webcasts, and Downloads

• Three Steps You Need to Know to Stop Data Loss Varonis Sensitive data exposed to misuse or loss... it is the stuff of nightmares ... Download Now
• Building the Virtualized Enterprise with VMware Iinfrastructure VMware VMware virtualization software has been adopted by over 120,000 enterprise ... Download Now
• The True Costs of Virtual Server Solutions VMware In an economic environment that is repeatedly heralding the message "do ... Download Now