it's high time to clean house at hp, but the proverbial "writing on the wall" has been around the hp palo alto campus for some years. there were a series of major mistakes made, but the once iconic company in silicon valley that started out from a garage has grown too big and too bloated with ineffective "talent" lacking great vision and top leadership. it has become like other valley dinosaurs that either have gone extinct or ended up as a meal for a newer rival: amdahl, silicon graphics, sun microsystems, etc.
there are simply too many chobolan, old, out-dated foggies loitering and idling around the cubes and corridors of palo alto either looking for something to do or looking busy but spending an inordinate amount of time chit-chatting, surfing the web, and going back and forth to the coffee station. another sign of an old, out-dated workforce depleted of talent is the frequent use of restrooms by geriatric employees.
they need to get smaller and more focused. after the split, the personal computer and printer business retains the name of hp inc. while the data center and cloud computing business adopts the up and coming hype and "growth" that hp enterprise is supposed to exploit. before the split, they literally had to divide themselves into duplicate, i repeat, duplicate departments such as 2 admins, 2 accounting departments, 2 finance departments, 2 legal departments, 2 hr departments, and so on. the headcount actually increased through frantic hiring just before the split. and now, they are planning to fire many that have just been hired on both sides.
meg whitman who now heads the enterprise side fires the first volley with the announcement on headcount reduction. very soon, it will be followed by the inc. side. the new inc. ceo is still new in the position and quite clueless as to what to do. at least meg is quick with the draw, drawing from her previous experience with ebay. it's quite messy.
meanwhile, the rest of the valley behemoths are sprinting ahead....very rapidly and sucking the best talents not just from the area but from all over the world. apple, facebook, google, linkedin, salesforce are expanding their campuses in the south bay and delving into others' core competencies while biotech giants amgen, genentech (now roche), chiron are sprawling to the east bay. tesla, the electric car juggernaut, is poaching both hardware and software talents from the mobile industry. porsche, not to be outclassed by tesla, has found roots in the valley and hiring like crazy for their electric automobile lab. on the ip routing side of the valley, which is the mecca not just for computing, mobile gadgetry and app software, plus next gen automobiles and pharmaceuticals, brocade, cisco, juniper are flanked by acquisitions of alcatel-lucent (soon to become nokia-alu or nokalu) and ericsson. timetra was acquired by alu and redback by ericsson, and both set up hq's right in the valley moving their technical executives over from europe. and there are "white box", "grey box", "black box" upstarts, arista, palo alto networks, f5, a10, scrambling to turn the old and once start-ups such as brocade, cisco and juniper to hp's dinosaur fate.
and of course at the heart of it all, we have the chipset industry sitting on edge wondering what's next. altera, broadcom, intel plus hundreds of other smaller foundries including visitors who have become permanent residents qualcomm and ti are constantly churning in their labs with talent loss, poaching and repoaching.
how can hp survive in this crazy climate of churn, even if it splits into 2? stay tuned.
reporting from the valley......eat, shit and die.
