Other
Commentary
9/18/2006
05:08 PM
Commentary
Commentary
Commentary
Connect Directly
RSS
E-Mail
50%
50%

Amidst Scandal, Finally Some Good Press For HP

In This Issue:
1. Editor's Note: Amidst Scandal, Finally Some Good Press For HP
2. Today's Top Story
    - Hewlett-Packard's Task Master
    Related Stories:
    - General Motor's Massive IT Overhaul Takes Off
    - Former PC Industry Darling Tries For Comeback As Dell 2.0
3. Breaking News
    - Intel Switch, Lower Prices Give Apple A New Edge
    - 'Teardown' Finds Few Changes To New Video iPod
    - What Would Bill Gates Like To Watch On IPTV?
    - Clean Up Ajax Security Problems: A Comparative Review
    - Apple 'Pod' Trademark Fight Expands To U.K.
    - Phishers Spoof More Brands
    - Networking Software Searches Other Users' Desktops
    - E-Voting Machines Pose Election Threat, Professor Says
    - Creative Technology Unveils Zune Rival
    - Study: Vista Will Create More Than 50,000 New Jobs
    - Microsoft Hopes New Search Tool Draws Converts From Google
    - What Keeps CIOs Awake At Night? Old And New Worries, Says Survey
4. Grab Bag
    - NSA Bill Performs A Patriot Act (Wired News)
    - The 25 Worst Web Sites (PC World)
    - 10 Things That Will Happen To TV And Newspapers (Blogcritics.org)
5. In Depth: Microsoft Office 2007
    - Microsoft Releases Office 2007 Refresh
    - Review: Microsoft Office 2007 Beta 2 Technical Refresh
    - EU Scrutinizes Microsoft's Office 2007
6. Voice Of Authority
    - Author Peters Puts Both IBM And Microsoft On The 'Guarded' List
7. White Papers
    - Putting The Customer Back In Customer Service
8. Get More Out Of InformationWeek
9. Manage Your Newsletter Subscription

Quote of the day:
"A good reputation is more valuable than money." -- Publius Syrus

"Reputation, reputation, reputation! Oh, I have lost my reputation! I have lost the immortal part of myself, and what remains is bestial." -- William Shakespeare


1. Editor's Note: Amidst Scandal, Finally Some Good Press For HP

It's been a tough week for HP. Although the company is trying to move on from its spying scandal, several questions about HP's role linger. Patricia Dunn, after stonewalling on calls for her resignation, finally agreed to step down as chairman in January. And HP's actions are now being examined by as many as six regulatory and law enforcement groups.

But industry observers are starting to stand up for the company. The ascension of CEO Mark Hurd to chairman was welcomed as a move in the right direction by many. And as InformationWeek's Aaron Ricadela points out in his analysis of Hurd's performance since being appointed CEO in April 2005, HP's business is stronger than it has been in years.

If analysts are correct, HP will pull in more than $91 billion in revenue when its fiscal year ends Oct. 31. This will represent a 5% increase over 2005, as well as passage of a major milestone: finally surpassing IBM as the largest technology company in the world. Moreover, as Ricadela reports, HP's profits are growing faster than revenue; its stock has gone up 85% since Hurd took over, and its earnings have exceeded Wall Street estimates every quarter since that time.

Unlike his flamboyant predecessor, Carly Fiorina, Hurd has shunned the spotlight and clearly isn't interested in self-promotion or media stardom. Still, with his new dual role as CEO and chairman, he's clearly consolidating power—something that not all industry analysts are happy about—and building a reputation as a hard-hitting executive with a talent for spotting and eliminating inefficiencies as well as aggressively going after new revenue opportunities.

Speaking at InformationWeek's Fall Conference last week, Hurd called HP "a company in transition" and identified three huge growth opportunities: commercial printing and managing networks of printers, data center automation, and selling more laptops and handheld computers paired with better data security software.

Among other recent accolades, HP achieved the 20th spot in the InformationWeek 500, and the investment site 24/7 Wall St. included HP in its annual ranking of the 10 best-managed companies in America. "One of the great old names in U.S. tech has come back," wrote Douglas McIntyre in his blog on that site.

As other analysts have pointed out—including Eric Ross of ThinkEquity Partners and Michael Cohen of Pacific American Securities—investors are largely ignoring the scandal, as evidenced by the fact that HP's stock, after slipping slightly when the scandal peaked last week, immediately rebounded. Ross calls the scandal "a big soap opera" as far as investors are concerned. What matters is performance, and Hurd is delivering the goods.

It's been exciting but bittersweet to witness the saga of Silicon Valley's comeback kid. Living blocks from HP's corporate headquarters in Palo Alto, I have friends and neighbors who are among the legions of workers laid off since Hurd's arrival on the scene. And count me among those who were appalled at the tactics used to investigate the boardroom leaks. Investors may be shrugging off the scandal, but I believe HP's reputation will be tainted in the minds of the public for some time to come.

What do you think? Will HP successfully rise above this scandal? Will Hurd the straight shooter put things right? Let me know by responding to my blog entry.

Alice LaPlante
alice.laplante@gmail.com
www.informationweek.com


2. Today's Top Story

Hewlett-Packard's Task Master
Heir to the chairmanship, Mark Hurd stays focused on growth and efficiency.

Related Stories:

General Motor's Massive IT Overhaul Takes Off
Try training 8,000 people on new processes within just a few months. That's just the beginning of an effort to create one global IT services organization at GM.

Former PC Industry Darling Tries For Comeback As Dell 2.0
Founder and Chairman Michael Dell acknowledged that the company's direct sales model is no longer enough.


3. Breaking News

Intel Switch, Lower Prices Give Apple A New Edge
Apple moved its entire iMac all-in-one desktop line to Intel Core 2 Duo processors and dropped the starting price to below $1,000.

'Teardown' Finds Few Changes To New Video iPod
Wedbush Morgan Securities, which conducted the teardown, concluded that the new device is a short-term stopgap until Apple is "ready to launch its true iPod Video later this year or early next year."

What Would Bill Gates Like To Watch On IPTV?
The director of media services at Microsoft TV sent Gates an e-mail to find out. The answers included MIT AIDS research and golf tournaments.

Clean Up Ajax Security Problems: A Comparative Review
The CRN Test Center compares Cenzic, SPI, Finjan, and Apache products that help developers mitigate the vulnerabilities posed by Ajax-based Web applications.

Apple 'Pod' Trademark Fight Expands To U.K.
A British company is the latest to announce it has received a warning from Apple regarding its yet-to-be-released "securipod" wallet.

Phishers Spoof More Brands
A report says 154 brands were hijacked in July, an 18% increase over the previous month.

Networking Software Searches Other Users' Desktops
Illumio combines search and social networking to help users connect with people who can answer their questions.

E-Voting Machines Pose Election Threat, Professor Says
A Princeton professor says computer viruses can easily be installed in an e-voting machine to change vote totals.

Creative Technology Unveils Zune Rival
Creative released the Zen Vision W video, photo, and music player the same day partner-turned-rival Microsoft unveiled details of Zune.

Study: Vista Will Create More Than 50,000 New Jobs
But a European opponent to Microsoft counters the Microsoft-released IDC report, saying that without the Microsoft monopoly, Europe might do even better.

Microsoft Hopes New Search Tool Draws Converts From Google
Microsoft may finally believe its search engine and search advertising platform have reached the point of being technically competitive with Google and Yahoo. But technology will only get Microsoft so far.

What Keeps CIOs Awake At Night? Old And New Worries, Says Survey
Aligning IT and business and attracting and retaining IT talent are among the top CIO concerns, according to the Society for Information Management.

All Our Latest News


----- The latest research, polls, and tools -----

Podcasts
Get the best technology audio and video delivered at our new Podcast Central page, including the InformationWeek Daily News Podcast and Dr. Dobbs' .Net Casts.

A Week's Worth Of Dailies—All In One Place
Have you missed an issue or two of the InformationWeek Daily? Or want to check out some recent quotes of the day? Check out our Daily newsletter archive page and get caught up quickly.

Adopting SOA Is Challenging
Learn how more than 200 companies plan to overcome adoption challenges in this recent InformationWeek research brief.
-----------------------------------------


4. Grab Bag

NSA Bill Performs A Patriot Act (Wired News)
A Senate committee passed a bill that radically enlarges the government's ability to eavesdrop and search the houses of U.S. citizens without warrants.

The 25 Worst Web Sites (PC World)
Check out this tongue-in-cheek roundup of the worst places to visit on the Internet.

10 Things That Will Happen To TV And Newspapers (Blogcritics.org)
People have been talking about the ways bloggers and other online content providers will change the face of conventional print media. Here's one pundit's take on what others are missing.


5. In Depth: Microsoft Office 2007

Microsoft Releases Office 2007 Refresh
Anticipated for weeks by testers, Microsoft Office 2007 Beta 2 Technical Refresh is here.

Review: Microsoft Office 2007 Beta 2 Technical Refresh
B2TR adds a few features, tweaks a few others, and reminds us that there are changes coming in Microsoft's popular Office suite.

EU Scrutinizes Microsoft's Office 2007
The EU's Competition Commission has been looking into possible antitrust violations of Office 2007 since it first received complaints in February.


6. Voice Of Authority

Author Peters Puts Both IBM And Microsoft On The "Guarded" List
As Charles Babcock notes, In Search of Excellence author Tom Peters is no admirer of GM. But Peters also seems to be implying that IBM and Microsoft may have reached their zenith.


7. White Papers

Putting The Customer Back In Customer Service
Despite decades of investment in customer service initiatives, Global 2000 companies aren't yet attuned to their customers' needs. Here are tips and best practices for creating a customer-centric support organization.


8. Get More Out Of InformationWeek

Try InformationWeek's RSS Feed

Discover all InformationWeek's sites and newsletters

Recommend This Newsletter To A Friend
Do you have friends or colleagues who might enjoy this newsletter? Please forward it to them and point out the subscription page.


9. Manage Your Newsletter Subscription

To unsubscribe from, subscribe to, or change your E-mail address for this newsletter, please visit the InformationWeek Subscription Center.

Note: To change your E-mail address, please subscribe your new address and unsubscribe your old one.

Keep Getting This Newsletter
Don't let future editions of InformationWeek Daily go missing. Take a moment to add the newsletter's address to your anti-spam white list:
InfoWeek@update.informationweek.com

If you're not sure how to do that, ask your administrator or ISP. Or check your anti-spam utility's documentation. Thanks.

We take your privacy very seriously. Please review our Privacy Policy.

InformationWeek Daily Newsletter
A free service of InformationWeek and the TechWeb Network.
Copyright (c) 2006 CMP Media LLC
600 Community Drive
Manhasset, N.Y. 11030

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest September 18, 2014
Enterprise social network success starts and ends with integration. Here's how to finally make collaboration click.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
The weekly wrap-up of the top stories from InformationWeek.com this week.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.