Click here to close now.


Microservices Expo Authors: Pat Romanski, SmartBear Blog, Yeshim Deniz, Mike Kavis, Liz McMillan

Related Topics: Microservices Expo, Java IoT, Log Management

Microservices Expo: Article

Street Starts Agitating To Break Up HP

HP's shares are down 40% so far this year, 70% in the last two years

A pack of Wall Street analysts led by UBS’ Steve Milunovich, having little or no faith in Meg Whitman’s Mao-like five-year turnaround plan, has begun saying that HP has no alternative but to split into an enterprise company and a PC company.

HP abandoned the notion after it fired Whitman’s predecessor Leo Apotheker for suggesting it, arguing that customers want one HP and the two sides are deeply integrated.

Milunovich, who invokes the hallowed names of Dave Packard and Bill Hewlett to support of his position, reckons that if HP doesn’t act, a leveraged buyout specialist or a bunch of activist investors or a combination of the two is gonna come along, accumulate large stakes in the company, and pressure management and the board to dismantle the business.

Meg doesn’t have the luxury of time to pursue her languid five-year plan. He thinks she has less than two years “to show substantial progress.”

“In our view, full value won’t be realized by just improving operations – structural change is required,” he said. “Based on HP’s history, we think Bill Hewlett and Dave Packard would support this approach.”

He told CNBC Monday HP could unlock upwards of $5 a share in value by breaking up its divisions.

Its shares are down 40% so far this year, 70% in the last two years.

“We’re really trying to put a stake in the ground this time, though, and say that it’s just increasingly making too much sense,” he said. “Basically, the worst parts of the business are dragging the better ones down. So while there’s no silver bullet, we still think at the end of the day it’s going to be worth more broken up than whole.”

Last week, Milunovich had his eye on HP’s $11 billion in term debt, which comes due in the next couple of years. HP’s overall debt now stands at $20 billion, up $8 billion in the last year.

He thinks one thing the company might do to peel off its financial services unit, a strategic asset that’s carrying about $10 billion in customer debt, and suggests that HP might partner with Dell in some kind of joint financing venture.

HP closed down another 1.83% to $14.46 Monday. Milunovich believes HP is worth $20-$25 a share.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at) or paperboy(at), and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

@MicroservicesExpo Stories
JFrog has announced a powerful technology for managing software packages from development into production. JFrog Artifactory 4 represents disruptive innovation in its groundbreaking ability to help development and DevOps teams deliver increasingly complex solutions on ever-shorter deadlines across multiple platforms JFrog Artifactory 4 establishes a new category – the Universal Artifact Repository – that reflects JFrog's unique commitment to enable faster software releases through the first pla...
Saviynt Inc. has announced the availability of the next release of Saviynt for AWS. The comprehensive security and compliance solution provides a Command-and-Control center to gain visibility into risks in AWS, enforce real-time protection of critical workloads as well as data and automate access life-cycle governance. The solution enables AWS customers to meet their compliance mandates such as ITAR, SOX, PCI, etc. by including an extensive risk and controls library to detect known threats and b...
Ten years ago, there may have been only a single application that talked directly to the database and spit out HTML; customer service, sales - most of the organizations I work with have been moving toward a design philosophy more like unix, where each application consists of a series of small tools stitched together. In web example above, that likely means a login service combines with webpages that call other services - like enter and update record. That allows the customer service team to writ...
Several years ago, I was a developer in a travel reservation aggregator. Our mission was to pull flight and hotel data from a bunch of cryptic reservation platforms, and provide it to other companies via an API library - for a fee. That was before companies like Expedia standardized such things. We started with simple methods like getFlightLeg() or addPassengerName(), each performing a small, well-understood function. But our customers wanted bigger, more encompassing services that would "do ...
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud wit...
The APN DevOps Competency highlights APN Partners who demonstrate deep capabilities delivering continuous integration, continuous delivery, and configuration management. They help customers transform their business to be more efficient and agile by leveraging the AWS platform and DevOps principles.
Our guest on the podcast this week is Jason Bloomberg, President at Intellyx. When we build services we want them to be lightweight, stateless and scalable while doing one thing really well. In today's cloud world, we're revisiting what to takes to make a good service in the first place. Listen in to learn why following "the book" doesn't necessarily mean that you're solving key business problems.
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, ...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Despite all the talk about public cloud services and DevOps, you would think the move to cloud for enterprises is clear and simple. But in a survey of almost 1,600 IT decision makers across the USA and Europe, the state of the cloud in enterprise today is still fraught with considerable frustration. The business case for apps in the real world cloud is hybrid, bimodal, multi-platform, and difficult. Download this report commissioned by NTT Communications to see the insightful findings – registra...
Application availability is not just the measure of “being up”. Many apps can claim that status. Technically they are running and responding to requests, but at a rate which users would certainly interpret as being down. That’s because excessive load times can (and will be) interpreted as “not available.” That’s why it’s important to view ensuring application availability as requiring attention to all its composite parts: scalability, performance, and security.
“All our customers are looking at the cloud ecosystem as an important part of their overall product strategy. Some see it evolve as a multi-cloud / hybrid cloud strategy, while others are embracing all forms of cloud offerings like PaaS, IaaS and SaaS in their solutions,” noted Suhas Joshi, Vice President – Technology, at Harbinger Group, in this exclusive Q&A with Cloud Expo Conference Chair Roger Strukhoff.
As we increasingly rely on technology to improve the quality and efficiency of our personal and professional lives, software has become the key business differentiator. Organizations must release software faster, as well as ensure the safety, security, and reliability of their applications. The option to make trade-offs between time and quality no longer exists—software teams must deliver quality and speed. To meet these expectations, businesses have shifted from more traditional approaches of d...
As the world moves towards more DevOps and microservices, application deployment to the cloud ought to become a lot simpler. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. In his session at 17th Cloud Expo, Raghavan "Rags" Srinivas, an Architect/Developer Evangeli...
All we need to do is have our teams self-organize, and behold! Emergent design and/or architecture springs up out of the nothingness! If only it were that easy, right? I follow in the footsteps of so many people who have long wondered at the meanings of such simple words, as though they were dogma from on high. Emerge? Self-organizing? Profound, to be sure. But what do we really make of this sentence?
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Last month, my partners in crime – Carmen DeArdo from Nationwide, Lee Reid, my colleague from IBM and I wrote a 3-part series of blog posts on We titled our posts the Simple Math, Calculus and Art of DevOps. I would venture to say these are must-reads for any organization adopting DevOps. We examined all three ascpects – the Cultural, Automation and Process improvement side of DevOps. One of the key underlying themes of the three posts was the need for Cultural change – things like t...
There once was a time when testers operated on their own, in isolation. They’d huddle as a group around the harsh glow of dozens of CRT monitors, clicking through GUIs and recording results. Anxiously, they’d wait for the developers in the other room to fix the bugs they found, yet they’d frequently leave the office disappointed as issues were filed away as non-critical. These teams would rarely interact, save for those scarce moments when a coder would wander in needing to reproduce a particula...
In a report titled “Forecast Analysis: Enterprise Application Software, Worldwide, 2Q15 Update,” Gartner analysts highlighted the increasing trend of application modernization among enterprises. According to a recent survey, 45% of respondents stated that modernization of installed on-premises core enterprise applications is one of the top five priorities. Gartner also predicted that by 2020, 75% of
It is with great pleasure that I am able to announce that Jesse Proudman, Blue Box CTO, has been appointed to the position of IBM Distinguished Engineer. Jesse is the first employee at Blue Box to receive this honor, and I’m quite confident there will be more to follow given the amazing talent at Blue Box with whom I have had the pleasure to collaborate. I’d like to provide an overview of what it means to become an IBM Distinguished Engineer.