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For CIOs

Quick Take: HP Splits But Changes Little

What The Two Companies Will Do Next Matters Most To CIOs

October 7, 2014

Why Read This Brief

On October 6, 2014, HP announced that it will split its $115 billion business into two public companies by the end of its fiscal year 2015. Hewlett-Packard Enterprise will focus on the enterprise hardware, software, and services businesses. HP Inc. will focus on the personal systems and printing businesses. The new arrangement promises to simplify HP's enormously complex portfolio, but it doesn't solve near-term cloud, software, services, and mobile challenges. CIOs shouldn't rewrite their HP relationships — for better or worse — just yet. HP's next chapter is the crucial one for CIOs: Will the HPs remain trusted suppliers to your IT agenda, or will they evolve to help you accelerate your BT agenda? This report provides a quick summary of the facts of HP's announcement, our chat with HP CEO Meg Whitman, and Forrester's initial analysis for CIOs.

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