For those of you worried that Hewlett-Packard is short on solutions, the company this week moved to assuage those concerns. On Thursday, the tech giant — which is in the process of laying off more than 24,000 workers as it integrates services company Electronic Data Systems Inc. — informed employees that it would also be reorganizing its software division and renaming it H-P Software and Solutions.
While the name change is jargony (this blog has long lamented the word “solution,” especially the “end-to-end solution,” as meaningless tech gobbledygook), H-P’s software restructuring does have a point: The changes, which were first reported by Internetnews.com, will focus the software unit more on services so that it works better with the newly combined H-P and EDS.
H-P’s business intelligence software unit, for example, will merge with a consulting practice that has a similar focus. H-P also combined its media consulting group with a division that sells communication software to entertainment companies. There will also be some reshuffling of executives, including the departure of H-P software executive Ben Horowitz, the former chief executive of Opsware.
H-P bought Opsware last year for about $1.6 billion as part of a push to grow its software business. Software sales usually have much higher profit margins than hardware like the PCs and servers that H-P also sells. Opsware makes management software that H-P has been marketing to business customers who are looking to spruce up their data center management.
In an e-mail Friday, an H-P spokeswoman said the changes will “enhance our ability to deliver more end-to-end solutions.”