Home / / Software business is most profitable for HP

Software business is most profitable for HP

Firm announces new cloud computing offerings at 2009 HP Software Universe in Hamburg

Software business is most profitable for HP
Steen Lomholt–Thomsen, VP and GM of HP Software, EMEA says that a ‘packaged’ approach with both software and hardware will be a key focus in 2010
Software business is most profitable for HP
Software & Solutions is the most profitable division within Hewlett-Packard
Software business is most profitable for HP
Robin Purohit, VP of Software Products at HP talks about the benefits of cloud computing in his keynote address to delegates at the event

HAMBURG, Germany: Hewlett-Packard talked up the importance of cloud computing at its Software Universe 2009 conference, where it was revealed that their Software & Solutions business was the most profitable division within the company.

HP is now the world's sixth largest software business with the division raking in a revenue of $3.6 billion in 2009. Drawing on demand and customer feedback, the firm has now launched three new cloud computing offerings for organisations, including the HP Communications as a Service (CaaS) cloud program for service providers which enables them to offer small-to-medium businesses services delivered on an outsourced basis and priced like utilities.

The division's 2009 revenue does however reflect a 15% decline compared to last year's figures. Steen Lomholt-Thomsen, VP and GM of HP Software's Europe, Middle East and Africa (EMEA) region explained to itp.net that the decline can be understood given light of the economic situation and that the division's contribution to the company's overall profit was worth noting.

"Like many of our customers, we've reprioritised our focus from revenue growth to profit contribution and from that perspective I'm very, very pleased with what we've been able to do in 2009," he stated.

For 2010, HP Software & Solutions plans to increase alignment across the company, continue investing in its portfolio, and will look at expanding into new channels and segments, with a particular focus on the mid-market.

Lomholt-Thomsen also added that there is increased focus on better leveraging HP as a go-to-market channel.

"When you look at our PC division or EDS division, there's a lot of opportunity for software to work much closer with them. Potentially when you buy a laptop or PC, there could be some software attached...there are a lot of opportunities for us to create a more packaged approach to our process with software and hardware, in an integrated way, and then bringing that to our customers. That will be another significant way that I will see us grow in 2010," he concluded.

More than 3,000 partners and delegates are attending the three-day HP Software Universe event in Hamburg this year, which comes to a close tomorrow.

Follow us to get the most comprehensive IT solutions delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.