All Eyes on HP Amidst Report its Enterprise Group Chief has Been Reassigned
A report Wednesday morning that Dave Donatelli is out as the head of HP's Enterprise Group sent the company's stock down and raised interest in what details HP will reveal during or following its Q3 earnings conference call on Wednesday afternoon. HP has not issued any statement about such changes.
Wed, August 21, 2013
Network World — A report Wednesday morning that Dave Donatelli is out as the head of HP's Enterprise Group sent the company's stock down and raised interest in what details HP will reveal during or following its Q3 earnings conference call on Wednesday afternoon. HP has not issued any statement about such changes.
(The HP (HPQ: NYSE) conference call will be accessible via webcast at 2pm PST/5pm EST Wednesday).
Widespread sentiment is that HP's results, at least for the Enterprise Group, won't be good. The company's stock topped $26 shortly before 10am EST, but had fallen to $25.50 by 1pm EST. An AllThingsD story on the reported executive reshuffling set changes in motion just after noon EST (An update to that story added that HP Chief Marketing Officer Marty Homlish has also been reassigned.).
Donatelli's formal title has been executive vice president and general manager of the Enterprise Group, which HP describes as making him "responsible for the development and delivery of server, storage, networking and technology services solutions that support HP's Converged Infrastructure strategy."
The Enterprise Group was a roughly $30 billion business last year, but its revenue was less than $14 billion through the six months ended in April.
Donatelli made a controversial jump from EMC (where he spent 22 years) to rival HP in 2009, and has since overseen key HP Enterprise efforts such as Project Moonshot, which is focused on high density, low power servers.
Donatelli made waves at Interop a couple years back for taking Cisco to task for a lack of innovation and too-high prices. http://www.networkworld.com/community/blog/hp-cisco-we-try-harder
HP has been undergoing a major restructuring under CEO Meg Whitman that involves slashing some $3.5 billion in costs. The company shuffled management of its PC division in June, reassigning Todd Bradley to head up strategic growth initiatives.
Donatelli's name has surfaced in recent years as a possible CEO candidate at companies including HP and Intel.
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