HP 2010 Annual Report Download - page 12

HP Products and Services; Segment Information
Our operations are organized into seven business segments: 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. 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. In each of the past three fiscal years, notebooks,
desktops and printing supplies each accounted for more than 10% of our consolidated net revenue. In
fiscal 2009 and 2010, infrastructure technology outsourcing also accounted for more than 10% of our
consolidated net revenue.
A summary of our net revenue, earnings from operations and assets for our segments and business
units is found in Note 19 to the Consolidated Financial Statements in Item 8, which is incorporated
herein by reference. A discussion of factors potentially affecting our operations is set forth in ‘‘Risk
Factors’’ in Item 1A, which is incorporated herein by reference.
HP Enterprise Business
The HP Enterprise Business provides servers, storage, software and information technology (‘‘IT’’)
services that enable enterprise and midmarket business customers to better manage their current IT
environments and transform IT into a business enabler. HP Enterprise Business products, software and
services help accelerate growth, minimize risk and reduce costs to optimize the business value of
customers’ IT investments. Companies around the globe leverage HP’s infrastructure solutions to
deploy next generation data centers and address business challenges ranging from compliance to
business continuity. The HP Enterprise Business’s modular IT systems and services are primarily
standards-based and feature differentiated technologies in areas including power and cooling, unified
management, security, virtualization and automation. Each of the three financial reporting segments
within the HP Enterprise Business are described in detail below.
Services
Services provides consulting, outsourcing and technology services across infrastructure, applications
and business process domains. Services delivers to its clients by leveraging investments in consulting
and support professionals, infrastructure technology, applications, standardized methodologies, and
global supply and delivery. Our services businesses also create opportunities for us to sell additional
hardware units by offering solutions that encompass both products and services. Services is divided into
four main business units: infrastructure technology outsourcing, technology services, applications
services and business process outsourcing.
Infrastructure Technology Outsourcing. Infrastructure technology outsourcing delivers
comprehensive services that streamline and optimize our clients’ infrastructure to efficiently enhance
performance, reduce costs, mitigate risk and enable business change. These services encompass the data
center and the workplace (desktop); network and communications; and security, compliance and
business continuity. We also offer a set of managed services, providing a cross-section of our broader
infrastructure services for smaller discrete engagements.
Technology Services. HP provides consulting and support services, as well as warranty support
across HP’s product lines. HP specializes in keeping technology running with mission critical services,
converged infrastructure services, networking services, data center transformation services and
infrastructure services for storage, server and unified communication environments. HP’s technology
services offerings are available in the form of service contracts, pre-packaged offerings (HP Care Pack
services) or on an individual basis.
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