Muted response to HP split plans

The news that HP is planning to split is causing uncertainty in channels on which competitors can be expected to capitalise.

Giorgio Nebuloni, Research Manager for Data Centres at IDC EMEA said: "HP's stated goal is to have an increased focus, faster decision making process, and ultimately different long-term strategies and investment roadmaps for the two business blocks.

"Tellingly, HP (PC and printer) is depicted as a stable business with predictable returns and an organic growth pace, while Hewlett-Packard Enterprise will see 'targeted merger and acquisition activity'.

"In other words, the enterprise side, which is the one HP aligns most to IDC's 3rd Platform vision, is the one where IDC expects to see more radical changes and bets on in the future. Overall, and despite the trends over the past nine months, we believe the underlying assumption is that HP Inc. is poised to face headwinds in the longer term, while the enterprise part can be boosted by significant growth with the correct investments."

In channels there is more uncertainty: Chrystelle Labesque, Research Manager, Personal Computing, at IDC EMEA, added: "As happened in 2011, IDC expects competitors such as Lenovo and Dell to try and leverage this and to try to lure smaller resellers and distributors away with a 'unity' message.

"On the positive side, HP is in a much better organisational and financial shape these days and has a clearer story for the market. In the two-tier EMEA channel, which the company dominates, having two HPs could go either way. Each supplier might weigh less and be less dominant, or it could get more room to focus and grow.

"In the mid-term we maintain that the split could end up being costly particularly to the volume side of both houses - HP is clearly looking at the longer-term horizon, but a strong acceleration in the value-add segments or in brand new markets will be needed to prove the move worthwhile."

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