HP chief eyes title of world's biggest tech firm

HP chief eyes title of world's biggest tech firm

07/08/2007

THE chairman and chief executive officer (CEO) of  Hewlett-Packard (HP), Mr Mark Hurd, has an ambitious goal: Turn the Silicon Valley icon into the world's largest information technology (IT) company.  

With sterling results in the quarter ended April showing growth in all products from printers to personal computers (PC) to storage, his vision is achievable.  

Based on this, analysts have forecast that HP is on target to exceed US$100 billion (S$152 billion) in sales revenue for the fiscal year ending October, said Mr Hurd.  

This will make HP the first IT company to cross this mark.  

Its revenue last year was US$91.7 billion, just ahead of close competitor IBM, which clocked in sales of US$91.4 billion.  

For HP to fulfil Mr Hurd's vision, it will take a combination of three key strategies. The company is focusing on improving operating margins and cutting overhead costs; leveraging on research and development to come up with new products; and extending existing products into new segments.  

In Singapore recently to meet customers and business partners,   Mr Hurd, 50, said he has been proud of HP employees who have delivered good performance while taking the painful steps needed so far to transform the company into a leaner organisation.  

Since he took over in April 2005, he has trimmed management levels, cut 15,000 people from the company's payroll and made managers more accountable for their operations.  

In an interview with The Straits Times at the  Ritz-Carlton hotel, he stressed that the transformation is far from being complete, alluding to more cuts in operating costs and the workforce.  

The transformation has resulted in HP becoming Wall Street's darling again. Its share price has risen to over US$40 this year, double the US$20 in 2005.  

In the PC market, HP is now the No. 1 vendor in terms of market share, a position it snatched from rival  Dell at the end of last year.