HP and Open Innovation: ups and downs

Transcription

1 HP and Open Innovation: ups and downs George Dies Berkeley Innovation Forum November 1, Hewlett-Packard Development Company, L.P. 1 The information 10/3/14 contained herein Copyright is subject 2007 to change HP corporate without notice presentation. All rights reserved.

2 HP today Fortune 14 company Simplifying technology experiences around the world 156,000 employees 145,000 sales partners 70,000 service partners 2 10/3/14 Copyright 2007 HP corporate presentation. All rights reserved.

3 Leadership across the board Worldwide data for calendar CQ Blade Servers 1 #1 X86 based Servers 1 #1 Unix + Linux + Windows Servers 1 #1 Branded Tape Drives 5 #2 Disk Storage Systems 1 #1 SAN Systems 1 #2 Inkjet printers 4 LaserJet printers 4 #1 #1 Workstations 3 Handhelds pen based Notebooks 2 Desktops #1 #1 #2 #2 1 Factory Revenue; Other percentages are units 4 Includes color and monochrome; single and multifunction excluding SFDC 2 5 Classified as portables by IDC Branded Tape Drive revenue from Worldwide Branded Tape 2006 Vendor Analysis IDC # Includes PWS Desktops, PWS Mobile and RISC workstations Source: IDC Q worldwide data 3 10/3/14 Copyright 2007 HP corporate presentation. All rights reserved.

4 Financial strength Q3 net revenue up $3.5 billion Y/Y or 16% Fiscal year revenue growth year to date of $8.9B $12.5 billion in gross cash at end Q307 Generated $1.9 billion in cash flow from operations Q307 HP Financial Services $2B Trailing 4 quarters $100.5B HP Services $16.3B Enterprise Storage & Servers $18.2B Imaging & Printing Group $28B Personal Systems Group $34B Software & Other $2B Revenue by segment Personal Systems Group 35% Software & Other 2% 4 10/3/14 Copyright 2007 HP corporate presentation. All rights reserved. Q3 FY07 revenue: $25.4B Imaging & Printing Group 27% Enterprise Storage & Servers 18% HP Services 16% HP Financial Services 2% U.S. 33% Revenue by region Americas 44%, up 14% Y/Y U.S. 35% Canada/Latin America 9% EMEA 38%, up 16% Y/Y Asia Pacific 18%, up 22% Y/Y

5 HP and Open Innovation: hit or miss HP has long tradition of alliances, partnerships, joint work towards creation of standards VERSUS Till late 1999, HP was grab bag of 80+ product divisions Little tradition of sharing IP in IT industry HP very protective of IP in printing (25 years of inkjets) As Dell emerged as #1 PC vendor in late 1990s, HP strove to differentiate Impact of DOJ settlement with Microsoft 5 10/3/14 Copyright 2007 HP corporate presentation. All rights reserved.

6 HP and Open Innovation: #1: LTO In late 1990s, HP was (and still is today) #1 in tape storage key storage solution for SMB/Enterprise Format proliferation (DLT, DAT, etc) limited scale benefits Quantum licensed DLT format from DEC Would tape survive vs. disk? SOLUTION: IBM, Seagate and HP formed LTO consortium A first in IT industry common road map shared by competitors (cleared in advance by DOJ) 4 generation product road map announced By late 2006: LTO has >90% market share and Quantum has bought into consortium. Tape sales have not declined as predicted 6 10/3/14 Copyright 2007 HP corporate presentation. All rights reserved.

7 HP and Open Innovation: #2: Photos In late 1999, HP announced Cartogra, photo-sharing site In 2000, HP simultaneously invested in Ofoto and Zing, startup photo-sharing sites typical investments in dotcom era, roughly $5 Million each Cartogra (aka HP Photo ) uses Ofoto for fulfillment, cuts prices, becomes photo-sharing site for ebay Kodak acquires Ofoto in 200, Zing sold to Conexant in 2002, which shuts it down HP acquires Snapfish in 2005 now world s largest photo-sharing site, with > 40m members and >1B images Shutterfly does IPO in now $ /3/14 Copyright 2007 HP corporate presentation. All rights reserved.

8 HP and Open Innovation: #3: HALO In 2003, Dreamworks asked HP for assistance in rendering for Shrek 2. CEO Katzenberg announced move to 2 full-length animated films/yr. CPUs needed to finish scale up by factor of 10 in last 90 days. HP created rendering service, wherein Dreamworks borrowed CPUs Separately, HALO technology introduced to HP internal to Dreamworks for communications between animators Dreamworks not interested in taking to market, but realizes Metcalfe Law (network effect) might work HP licenses technology, announces HALO Dec 2005, has now installed > 100 studios Cisco announces telepresence in /3/14 Copyright 2007 HP corporate presentation. All rights reserved.

9 HP and Open Innovation: #4: Large Services Customer Co-Innovates In 2003, one year after HP-Compaq merger, HP trying to establish reputation as IT outsourcing provider, competing with EDS and IBM Global Services. Wins mega-deal, with terms negotiated at CEO level HP Labs asked to provide innovation services BUT, as part of IT services agreement, customer owns all IP Furthermore, agreement administered by IT dept, not CTO Result: nearly dozen projects started in 2004, but none have resulted in product. HP has tried to open discussions with other customers in same industry and customer has asserted IP ownership rights. 9 10/3/14 Copyright 2007 HP corporate presentation. All rights reserved.