HP Keeping PC Business, Spin-Off Axed

After several months of deliberation, it's been announced today that HP will keep its Personal Systems Group business, this PC Unit to stay in the family for the time being. Just this past August it was announced by HP that the possibility of spinning its PC business off was a real one, but just today it was noted by CEO Meg Whitman that HP will keep all ties to their PSG section as she stated "together we are stronger." Having toured the Houston HP campus where PCs are tested for quality assurance just a few weeks ago, I can personally say that the force is strong with this one, as it were.

Of course there's no knowing what a company will truly do when dire times hit, but the strength and dedication of what once was known as Compaq certainly showed itself to be burning the midnight oil when your humble narrator visited this summer in Texas. Today's announcement confirms that HP has both evaluated the situation and will be keeping things as they are. HP CEO Meg Whitman had the following to say on the subject in today's announcement:

"HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It's clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees. HP is committed to PSG, and together we are stronger." – Whitman

As far as how well the company will do now that it's decided to stay in the PC creation business is not yet known, but for the moment they say that their PSG department is a key component of their future business. HP notes that they'll continue to remain dedicated not only to enterprise customers, but to small and medium sized businesses and consumers of all types. The company noted:

"The data-driven evaluation revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement. It also detailed the significant extent to which PSG contributes to HP's solutions portfolio and overall brand value. Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation." – HP

Have a look at a couple videos from our tour of the HP Houston campus and see how the PC remains strong:

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And have a look as HP PR Manager Mike Hockey assured us that the spin-off was not part of the tour at that time:

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