Personal computer and printer maker Hewlett-Packard Co.
reportedly plans to split itself into two separate companies
by spinning off its technology services business. The Wall
Street Journal reported the pending split Sunday. Newslook

HP confirmed Monday it will split into two companies —
the latest gambit by HP executives to jump-start a
push into fast-growing tech segments in the face of
withering competition.
Whitman, whose plan has had mixed results, will lead
the new Hewlett-Packard Enterprise. It will sell
computer servers, data-storage gear, software and
other services to corporations. Hardware chieftain Dion
Weisler will be CEO of HP Inc., which consists of the
PC and printer businesses. 
Patricia Russo, current lead independent director,
will be chairman of the Enterprise unit.
The long-rumored move, designed to make HP 
more nimble, resonated with shareholders. HP's 
stock is up nearly 6% in afternoon trading. HP 
shares have risen sharply this year, but are still well 
short of their highs in recent years. (actually they are 
the best in 4 years, and except for a brief Mark Hurd-
led gutting of the company's future, the highest 
they've been in 13 years.  This story about how 
screwed up HP stock price is, just won't die)
HP's split, however, raised red flags among long-time 
company watchers, who pointed to even more layoffs 
as part of the plan and no guarantee of its success in 
an increasingly fast-paced, evolving tech landscape.  
(So, what, you might ask do these venerated long-time 
company watchers recommend instead?  Pretty hard to 
guarantee success with anything by any company 
these days, right?)
The severity of the plan — considered but not acted
upon by HP executives for years — underscores
deep-seated concerns about HP's long-term future
amid stagnant sales and some call outdated products
and services.
Asked by CNBC if the split is proof that the company's
turnaround efforts have failed, Whitman said, "Today is
only possible because the turnaround has succeeded."
"Think about what we have accomplished over the last 
three years," she said. "A rebuilt balance sheet, an 
innovation pipeline that is significantly improved over 
three years ago.(AMEN) ... An inspired workforce, a new 
leadership team, renewed confidence of our partners, 
our customers, frankly, our shareholders as well."
The move is expected to be completed by the end of
fiscal year 2015. Both companies, each with about
$50 billion in annual revenue, will be publicly traded.
Carving HP in half gives the new companies "the
independence, focus, financial resources and flexibility
they need to adapt quickly to market and customer
dynamics," Whitman said.
"The major benefit I see in the move is that the enterprise 
business will have a singular focus on the data center, 
and the PC and printer business can be a lot speedier 
and agile," said Patrick Moorhead, president of Moor 
Insights and Strateg
y, a tech analyst firm. He said HP 
will need to ensure its PC and printer business has 
enough cash to compete in both the consumer PC and 
emerging smart home markets.   (Well, duh, what other 
consumer PC and emerging smart home market company 
has a cash cow today anywhere near as big as HP's ink 
business?  The answer is that there are only two: Apple 
and Google.  Formidable, yes, but don't lose sight of the 
fact that HP bested IBM, Xerox, Canon, Savin, Konica, 
and multiple others in printing when they were all still 
darlings of the world. miracles an happen, especially 
if you're focused and hungry)
By splitting itself, HP follows an increasingly popular
playbook in Silicon Valley and beyond: Breaking off or
spinning off a portion of the business so that it is more
focused. Such actions are typically met with a stock boost.
Last week, eBay said it would spin off its mobile-payment
service PayPal into a separate company.
"HP, as we know it, is a company of the past," says Jerry
Reisman, senior partner at a Garden City, N.Y., law firm
that specializes in tech mergers and acquisitions. "The
only way for it to be a company of the future is to create
an energetic, growth company through this move."