Seeking a place for itself in a digital world increasingly dominated by mobile technology, Hewlett-Packard is on the verge of a sweeping reorganization, the New York Times reported Sunday, citing unnamed people familiar with the matter.
The company would be split into two entities - one focused on HP's traditional business in personal computers and printers, and the other consisting of computer servers, data storage devices, networking, software and services aimed at businesses, according to the individuals, who requested anonymity to preserve relations with HP.
HP is considered the foundational Silicon Valley company, originating in a garage and then serving as a training ground for several generations of technology leaders. Its changing fortunes are a mark of how much the technology industry, which has reordered many areas of the business world, is now doing the same to itself.
In a little over a year, stalwarts like Microsoft, IBM and Dell have changed chief executives, sold big parts of their businesses or gone private. All of them, along with a host of other companies that became behemoths during a 20-year boom in personal computing and the Internet, are rushing to cope with the rise in mobile devices connected to cloud systems.
Cloud computing uses software to turn numerous computer servers, sometimes a million or more, into single entities. These flexible systems can distribute work with greater efficiency, cutting the overall need for servers, and interact easily with other computers, whether in clouds, PCs, or mobile devices.
HP was long the world's largest computer company, though there has been much turmoil in recent years. The two businesses resulting from the proposed split almost evenly divide in half HP's fiscal 2013 revenue of $112 billion. On their own, both would fit in the top half of the Fortune 500.