HP Concludes That Bigger Is Better

Analysts applaud the company's decision to keep its PC unit as the personal devices market takes off.

Hewlett-Packard's decision to retain its vast PC division likely offers some insight into the type of company new CEO Meg Whitman and her team want to lead.

First, they don't want HP to focus on data center hardware and high-margin services and software, like IBM does.

Second, they don't want HP to become tone-deaf like Netflix and make a decision that could cost the company its customers and good will.

Third, they do want to put the turbulence of yet another CEO ouster behind them and let Whitman, less than two months into the job, get her footing without major distractions.

HP generated some $126 billion in revenue last year, and $40.7 billion of that came from its Personal Systems Group, which sells PCs, tablets and other devices.

The company has long touched almost every aspect of IT operations, and it keeps growing by moving deeper into enterprise software through internal development and by acquiring companies like Autonomy, for which it paid more than $10 billion last month.

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