HP's Rosy Outlook May Not Be Enough to Ease Worries

http://www.cio-today.com/news/HP--Rosy-Outlook--But-Worries-Remain/story.xhtml?story_id=13100C3LGVTX

Sukgu's comment - This article reminds me of IBM's succeful transition from computer manufacturers to solution providers. Many IT companies (actually almost all companies in every industries) are facing with the issue of change, grow, and diversify because the surrounding environment doesn't allow them to do nothing. For the survival, every company is required to change in any way. However, it's always not easy and risky to to something that we have no experience. Thus, many companies use M&A as the way to jump into the new field. But, failure rate of M&A is much higher than success rate.

Among other challenges, HP will likely have to make substantial layoffs from a combined work force of 210,000 employees while trying to blend two different corporate cultures after the EDS deal closes late this year. HP is counting on EDS to boost the demand for its services and computers among major companies and government agencies.