HP will indeed split itself into two companies, with its corporate hardware and services division becoming Hewlett-Packard Enterprise under CEO Meg Whitman, and HP Inc. becoming the PC and printing brand, with new initiatives like 3D printing spinning up, under Dion Weisler (Whitman remains as Chairman of the board for the consumer company, too).
The company’s decision to split is part of its five-year turnaround plan, according to a release detailing the move, and are aimed to help the troubled tech enterprise become more profitable. It will reduce debt at the operating level, the release states, and help make the organization more nimble and better able to deal with changes in the market. It’s set to be completed before the end of fiscal 2015.
Separating the two halves of the company will also mean that each arm is more free to work with partners of opportunity to extend their reach and presence. With the enterprise business yoked to the consumer hardware division, it’s possible both sides were prevented from being able to form relationships with hardware and software companies that compete with its other half. It also opens up potential acquisition opportunities, especially for the enterprise division, which has apparently been attracting some interest from players like EMC.