HP 2009 Annual Report Download - page 43

ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations
The following discussion should be read in conjunction with the Consolidated Financial Statements
and the related notes that appear elsewhere in this document.
OVERVIEW
We are a leading global provider of products, technologies, software, solutions and services to
individual consumers, small- and medium-sized businesses, and large enterprises, including customers in
the government, health and education sectors. Our offerings span:
• multi-vendor customer services, including infrastructure technology and business process
outsourcing, technology support and maintenance, application development and support services,
and consulting and integration services;
• enterprise information technology infrastructure, including enterprise storage and server
technology, networking products and resources, and software that optimizes business technology
investments;
• personal computing and other access devices; and
• imaging and printing-related products and services.
We have seven business segments for financial reporting purposes: Services, Enterprise Storage and
Servers (‘‘ESS’’), HP Software, the Personal Systems Group (‘‘PSG’’), the Imaging and Printing Group
(‘‘IPG’’), HP Financial Services (‘‘HPFS’’), and Corporate Investments. Services, ESS and HP Software
are reported collectively as a broader HP Enterprise Business (formerly referred to as the Technology
Solutions Group). While the HP Enterprise Business is not an operating segment, we sometimes
provide financial data aggregating the segments within it in order to provide a supplementary view of
our business.
Our strategy and operations are currently focused on the following initiatives:
Competitive Positioning
We are positioning our businesses to take advantage of important trends in the markets for our
products and services. For example, we are aligning our printing business to capitalize on key market
trends such as the shift from analog to digital printing and the growth in printable content by
developing innovative products for consumers such as the first web-connected home printer, working to
enable web and mobile printing, expanding our presence in high-usage annuity businesses including
graphics and retail photo printing, and growing our managed print services business. We are also
positioning our enterprise business to capitalize on the trend towards converged infrastructure products
that integrate storage, networking, servers and management software. In addition, we have developed
IT management software offerings that seek to satisfy the increasing demand for virtualization
management and increased automation.
Driving Operational Efficiency
We have implemented an ongoing program to optimize efficiency and reduce cost across the
company. As part of those efforts, we are continuing to execute on our multi-year program to
consolidate real estate locations worldwide to fewer core sites in order to reduce our IT spending and
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