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HP CEO: Company To 'Double Down' On Core Products

Hewlett-Packard will not, as some continually predict, spin off its coveted printer business, nor will the company dump PCs in the face of Dell's cheaper-computer onslaught.

Seven months into his tenure at HP, CEO Mark Hurd pledged that the company will "double down" on its core areas: servers, PCs, printers and management software.

"When I first came [to HP], I got a lot of questions about spinning off printers. We're not working to get out of the printer business or spinning it off or divesting it. That's point one," Hurd told several thousand IT and C-level executives Tuesday in a keynote speech at Gartner's ITXpo conference in Orlando, Fla. "Point two, you'll see us return to fundamentals. We're getting our cost structure in line, simplifying the organization. We are leveraging our core. We have tremendous technology and core assets. We're in the server business, we're in the printer business, we're in the management software business. You'll see us double down in those businesses. We'll ship 50 million printers, 30 million PCs, a couple million industry-standard servers. That's in one year.”

"Doubling down" seems to be a favorite concept for Hurd. Earlier this year, he said the Palo Alto, Calif., IT giant would double down on its top partners that sell total HP solutions, giving them preference over solution providers who sell less HP product and services.

Asked by Gartner analyst Carl Claunch if HP would pursue a product-agnostic services business, or task its service personnel with selling HP wares, Hurd straddled the issue. "To a degree, we'll be very, very focused on services. The strategic debate is how far up the stack we go," he said. "We're focused in services, IT outsourcing and partnering to bring the full solution."

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