HP's new CEO hints that software will be priority

NEW YORK -- Hewlett-Packard Co.'s new CEO signaled Friday that expanding the company's software business will be a top priority.

HP announced the hiring of Leo Apotheker, the former head of business software maker SAP AG, late Thursday. On a conference call Friday morning, Apotheker called software the "glue" that holds together the different parts of the company.

"Software is how we can make sure that the various parts of our technology actually fit well together," he said.

HP has been trying to build on its personal computer and printer businesses by expanding into technology services, data storage and security.

Analysts have questioned the hiring of a CEO who resigned abruptly from his last job after less than two years in the position.

But the company defended its pick Friday, saying Apotheker was the only candidate offered the CEO job.
HP Director Robert Ryan pointed out that Apotheker helped SAP post 18 consecutive quarters of double-digit growth in software revenue between 2004 and 2009.

Link: http://www.washingtonpost.com/wp-dyn/content/article/2010/10/01/AR2010100101054.html?wpisrc=nl_pmtech

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