Ravynmagi
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Investors class action lawsuit against HP
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http://www.dailytech.com/Shareholder+Rebellion+Suit+Filed+Against+HP+Following+Drastic+Moves/article22762.htm
Last year HP fired it's CEO Mark Hurd and hired SAP's former CEO Leo Apotheker. This Leo guy was fired from SAP because he wasn't doing a good job running a software company that could compete against Oracle and IBM. In fact SAP lost a $1.3 billion lawsuit for stealing Oracle's software.
So HP picks up Leo as their CEO. And just a few weeks ago Leo reveals that he wants to turn HP into an enterprise software company like SAP, Oracle, and IBM. And in the process dump it's profitable PC business. Investors freaked out and HP lost 20% of it's stock value in a single day.
So a major investor has fired a class action lawsuit that HP and the CEO intentionally planned to defraud it's investors by not revealing these intentions earlier.
Hmmm... If Leo couldn't lead an enterprise software company to be competitive against Oracle and IBM. I'm wondering why HP thinks it's a good idea to let this guy chop apart your hardware business and try the same thing with your company that is even further behind in enterprise software?
I think HP's board of directors has lost it's freaking mind hiring this guy and letting him try to transform the company. I guess it could work, but seems like a huge unnecessary gamble to take consider the hardware business is doing so well.
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Lonestar_1
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I read about this. Enterprise is way more profitable overall. The desktop business while profitable, is not as large of a profit margin as the PC business. Think 30 to 1 vs 2 to 1 profits as a random example. So it is enticing to want to make that move. But...I do not think they have what it takes to go strictly enterprise. I did not think they could offer a complete package like IBM or Oracle.
Maybe he is aiming smaller and just being HP-Ux and Itanium, but they are the only ones supporting that CPU. Everyone else dropped Itanium basically. I know Oracle is not supporting going forward. Microsoft too. If you can get no other vetted middleware to run fully supported then you will have issues down the road. They would be better off putting more cash into enterprise and work on more product offerings to better compete first before deciding on cutting stuff.
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IvanDF
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Investors class action lawsuit against HP
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Why can't they do enterprise software and keep doing pc stuff???
But I dont get why they hired him after he lost so much money at SAP.
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Quazimortal
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Investors class action lawsuit against HP
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IvanDF posted:
But I dont get why they hired him after he lost so much money at SAP.
He can get some really good weed.
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We provide the music, and you provide the silence.†~Leopold Stokowski
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Blisteringballs
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Investors class action lawsuit against HP
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IvanDF posted:
Why can't they do enterprise software and keep doing pc stuff???
But I dont get why they hired him after he lost so much money at SAP.
1. Corporations sometimes make decisions like this just to stay, or appear, progressive or agile (or any other marketing jargon used to "define" a businesses strategy or "vision"). They also think they can be more profitable and grow focusing on enterprise software.
2. You fail upwards in the corporate world. Hell CEO's get rewarded millions of dollars for being fired.
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Lonestar_1
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^^ Here yes they tend to fall upwards. I really like what the upper management types do in places like japan. If things are bad they take pay cuts and no bonuses (or jump out a window).
Largest issue is they tend to aim to please the most vocal investors sometimes. They sometimes forget about long term impact of what they are doing. There are times when you got to spend some cash to lay the groundwork for future profits.
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Acao
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Investors class action lawsuit against HP
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Lonestar_1 posted:
^^ Here yes they tend to fall upwards. I really like what the upper management types do in places like japan. If things are bad they take pay cuts and no bonuses (or jump out a window).
Largest issue is they tend to aim to please the most vocal investors sometimes. They sometimes forget about long term impact of what they are doing. There are times when you got to spend some cash to lay the groundwork for future profits.
I understand spending money to make money. What I do not understand is selling off a profitable division to enter another market where they may or may not make money.
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RF_YWG
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Investors class action lawsuit against HP
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Acao posted:
I understand spending money to make money. What I do not understand is selling off a profitable division to enter another market where they may or may not make money.
The bigwigs aren't risking their own money or jobs, so that's why they do it. They don't care if the business flounders and they have to lay off or fire 10,000 people. They'll still get their fat salaries and bonuses.
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Ah-Schoo
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Investors class action lawsuit against HP
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RF_YWG posted:
Acao posted:
I understand spending money to make money. What I do not understand is selling off a profitable division to enter another market where they may or may not make money.
The bigwigs aren't risking their own money or jobs, so that's why they do it. They don't care if the business flounders and they have to lay off or fire 10,000 people. They'll still get their fat salaries and bonuses.
And clearly proving that you can't do it doesn't prevent you from getting the next multi-million dollar payout either.
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Acao
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Investors class action lawsuit against HP
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RF_YWG posted:
Acao posted:
I understand spending money to make money. What I do not understand is selling off a profitable division to enter another market where they may or may not make money.
The bigwigs aren't risking their own money or jobs, so that's why they do it. They don't care if the business flounders and they have to lay off or fire 10,000 people. They'll still get their fat salaries and bonuses.
Even the good ole boys/girls network that is the pool of major corporation CEO level people will leave someone out in the cold if they pull a really stupid move. A stupid move such as destroying a company by selling off the profitable portion to finance a dream and having it fail.
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Ravynmagi
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Investors class action lawsuit against HP
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HP's stock has dropped 43% since Leo Apotherker took over as CEO. Now there is talk that HP's board is considering firing his ass and replacing it with former eBay CEO Meg Whitman. Investors seemed to like that, HP stock shot up 8% on that news.
http://allthingsd.com/20110921/former-ebay-ceo-meg-whitman-being-considered-for-hp-ceo-job-to-replace-apotheker/
Mark Hurd is ROFLMAO somewhere.
In other HP disaster news. 500 Palm employees are getting the pink slip in October from HP. These are the guys working on WebOS. So I guess we can figure out what that means for WebOS. 
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