Saturday, August 24, 2013


I have not met David Donatelli, so my observations are 'from a distance' compared with many others at HP whom I have known over the years.

His roots are EMC, not HP, and thus it was surprising when he was named several years ago to head the hardware Enterprise side.  It did well for a time, really starting to give IBM a run for its money in this back-office low-profie very high impact arena of which most stock observers are only dimly aware.

When Ann Livermore retired, Meg combined his successful Enterprise hardware group with her Enterprise services group (recall that Services was the combination of the EDS and HP consulting sides; each about 10% of HP, and together nearly a quarter of the company's revenue and profit).  The services side is also about 45% of the people.

It seemed like a natural -- he was uniquely well suited to merge the two, and the combination was almost half the corporation's revenue and profit.  So while PCs struggled, and printers and their ink are increasingly slowing down (not yet negative), this is where "everyone" at HP (Ray Lane and Meg notably) were putting their emphasis.

I bought it.  I still buy it.  The problem with the following interview is that it was four months ago, and the May and August earnings announcements got in the way.  But ... read the following interview and see if it doesn't sound impressive to you too:

HP’s Donatelli: Pulling Stuff Out of the Lab, into the World  

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