Remember when the HP printer business drove the company's profits and revenues? As recently as 2003, the Imaging and Printing Group generated 55 percent of HP's income, an amount that led one IBM speaker at a 3000 conference to call HP "Inky." Today HP poured its printer and ink business -- which spews its profits from those $20 cartridges -- into the company's PC bucket.
At the same time that the declining fortunes of printing triggered this sea change, Hewlett-Packard sent its Enterprise Servers, Storage and Networking (ESSN) group into a much broader new segment, called the HP Enterprise Group. ESSN joins HP Technology Services (think consulting and cloud) and Global Accounts Sales -- which will be getting a new sales chief. Jan Zadak, a Czech EE with a Ph.D. from the Czech Technical University, is stepping down as Sales EVP after 10 years at HP. He arrived in the Compaq merger. David Donatelli, who joined HP in 2009 from EMC in a contested hiring, will lead Sales, Tech Services, and ESSN .
Few sales efforts in HP have battled headwinds as hard as the ones buffeting ESSN. It sells Linux and Windows servers based on the popular Intel Xeon family with some success, but also the HP-UX, NonStop and VMS environments that are subsisting on an existing base. Hewlett-Packard is working the IBM markets for new Unix installs. But that ex-mainframe business tends to go to Windows when HP succeeds, as it did at Yale-New Haven Hospital not long ago. The hospital wasn't replacing its HP 3000s, by the way.
The slackening sails of printer and ink sales pulled EVP Vyomesh Joshi into retirement. Known as VJ during his 32 years at HP, the executive also arrived with an EE degree, going to work in R&D. He's on the Yahoo board of directors.
Todd Bradley, who joined HP from Palm Computing and took over PCs in 2005, now takes the helm on an HP vessel that analysts are calling "trailing business." It's market-speak for products in decline, and for the moment the decline is around printing -- selling at 2005 levels by now -- rather than PCs. But HP hasn't shown any more PC growth in the last three years than anyone else in the business not named Apple. PCs have been flat to declining. Bradley now is the king of the consumer end of HP, the one that former director Dick Hackborn puffed up through the '90s with retailed ink and printers, and in the early Oughts with PCs. The days of HP-branded music players, TVs and cameras as leading businesses are over. A single camera pops up on the HP website today, and the HP flatscreens are history, too.