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Bob Davis

Mark good background on HP throwing up their hands because they see no future with webOS. After HP's $1.2 Billion strategic buy in April 2010 and now just walking away now seems crazy to me. There is another market for those that don't by into the IOS Platform. It seems like a knee jerk reaction and expensive move because of Best Buy's inability to sell enough of them before HP's earnings call.

Mark Sigal

@Bob, thanks for the comment. webOS had a solidly credible position, and it was hardly game-over in the space. Sure, their 1.0 was not gangbusters, but if it's the biggest market of the next day, and you know that PC is giving rise to Post-PC NOW, why abandon the space with so feeble of an effort? My gut is that Apotheker is an enterprise software guy, this wasn't his acquisition, and people write the narrative that scripts the outcome they most desire. Apple has solidly proven that a well-executed hardware, software, tools and services play is a game-changer on so many levels.

Anonymous

Well, it is true they abandoned a platforn for the most primising opportunity. But on the other hand, they recognized that as a company they had no chance of succeeding with it...so unfortunate but non an unreasonable move..

But paying 10x reevenue for an old-style enterprise software company? Now, what is the definition of insanity?

Mark Sigal

I am not sure that I agree that HP had no chance in Mobile/Post-PC devices. Maybe culturally they didn't, and/or they lacked the intestinal fortitude, but they had a differentiated position, a large sales organization to sell it, multiple product categories and market verticals from which to seed it, and arguably, a better position than Apple had when it entered the mobile phone market (but probably worse than when Apple launched the iPod).

As to Autonomy, that's one of those ends justifies the means cases that invariably leads to an overpay and under factor integration challenges.

In other words, may be a logical fork for Apotheker's HP, but odds are stacked against succeeding.

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