The end of PC: At least for Hewlett-Packard

Best Growth Stock – U.S. technology giant confirmed that it will stop producing tablets, smart phones and personal computers possibly, to concentrate on software.

U.S. technology giant Hewlett-Packard (HP), confirmed that fail to produce tablets, smartphones and possibly personal computers (PC).

The next step: focusing on the software.

To this end, the company agreed to buy British software firm, Autonomy, a millionaire who comes close to U.S. $ 1,500 million.

In a statement, HP said it is considering selling its personal systems division, the largest business worldwide production of PCs

HP said it would “consider a wide range of options which may include, among others, a total or partial separation (…) HP through a division or other transaction.”

Also stop making devices that use the operating system WebOS, as the Tablet PC and smartphones.

Market rumors had previously disclosed the names of several private equity firms interested in buying parts of HP, if it happened a division of the company.

The measure unveiled by HP is a major twist for the company, which in March announced a strategic review webOS integrate all future hardware.

“HP recognizes that the world has recognized that the hardware-in terms of consumers, big business is not growing,” said Michael Yoshikami, chief executive of YCMNET Advisors.

In 2009, HP launched its Pre smartphone intended to compete with the iPhone and devices based? In the Google Android operating system.

However, webOS could not get approval from users, operators and retailers.

The decision to get rid of Pre, and its TouchPad Tablet PC comes despite having paid U.S. $ 1,200 million last year for this technology through the acquisition of Palm.

Click Read: HP announces the purchase of Palm

For a long time and had heard rumors that the company’s chief executive, Leo Apotheker, the company wanted to move away from its traditional hardware business to concentrate on something smaller, but much more profitable software business.

“It is in line with the prospect of a new CEO who wants to be more and more services-oriented business,” Yoshikami said.

The transformation envisaged by Apotheker reminiscent of IBM, who retired from traditional business of traditional hardware in the last decade.

And who is Autonomy?
Almost as much impact as the announcement of the end of the HP PC, caused the purchase of the firm Autonomy for U.S. $ 1,300 million.

It was not a small operation, if not one of the largest acquisitions of a technology company in years.

Technology correspondent for the BBC, Rory Cellan-Jones said “you may never have heard of Autonomy, but the Cambridge-based company, founded in 1996 – is a British technology companies with more success.”

“Their software is used by companies to find large amounts of data and has been growing fast. Now it is only part of the computer giant HP,” he said Cellan-Jones.

Meanwhile, Autonomy’s headquarters will remain in Cambridge and its chief executive, Mike Lynch $ 500 million richer as a result of the sale, remain at the helm of the company.