Daily Archives: September 30, 2011

The near future of the tech industry

I am not into making predictions of the future. Okay, that is not true, I do it all the time, so what the fuck. A few weeks ago HP announced it was selling its PC hardware and mobile device businesses. Michael Dell promptly started antagonising them on Twitter, nearly everyone thought this was a bad idea and their stock plummeted. The HP board of directors fired the CEO in an attempt to sooth queasy investors. What HP didn’t do is abandon the plan to sell off their hardware divisions and become a service company. Upon appointment the new CEO promptly said she planned to follow the plan to restructure the company, the previous CEO was right, he was simply a victim of poor marketing.

This whole ordeal reminds of of another similar decision made by another tech company several years earlier. IBM sold off its PC hardware business to a Chinese company who now uses IBM’s patents to build the Lenovo line. Today it was announced that IBM has now over taken Microsoft as the #2 most valuable tech company in the world. While I can’t foretell the future, I will give even odds that in 5 years HP will be laughing all the way to the bank and Michael Dell will be left wondering what the hell happened.