HP 2010 Annual Report Download - page 20

Services. Our service businesses including HP Enterprise Services and Technology Services
compete in IT support services, consulting and integration, infrastructure technology outsourcing,
business process outsourcing and application services. The IT support services and consulting and
integration markets have been under significant pressure as our customers have reduced their IT
budgets. However, this trend has benefited the outsourcing services business as customers drive toward
lower IT management costs to enable more strategic investments. Our competitors include IBM Global
Services, Computer Sciences Corporation, systems integration firms such as Accenture Ltd. and
offshore companies such as Fujitsu Limited and India-based competitors Wipro Limited. Infosys
Technologies Limited and Tata Consultancy Services Ltd. We also compete with other traditional
hardware providers, such as Dell, which are increasingly offering services to support their products.
Many of our competitors are able to offer a wide range of global services, and some of our competitors
enjoy significant brand recognition. Our service businesses team with many companies to offer services,
and those arrangements allow us to extend our reach and augment our capabilities. Our competitive
advantages are evident in our deep technology expertise, which includes multi-vendor environments,
virtualization and automation, our strong track record of collaboration with clients and partners, and
the combination of our expertise in infrastructure management with skilled global resources in SAP,
AG, Oracle Corporation and Microsoft Corporation platforms.
HP Software. The areas in which HP Software operates are fueled by rapidly changing customer
requirements and technologies. We market enterprise IT management software in competition with
IBM, CA, Inc. (‘‘CAI’’), BMC Software, Inc. and others. Our information management and business
intelligence solutions compete with products from companies like Symantec Corporation, IBM, EMC,
CAI, and Teradata Corporation. We also deliver communications and media solutions that compete
with products from IBM and various other competitors. As new delivery mechanisms such as
software-as-a-service come on the scene, we are also confronting less traditional competitors. Our
differentiation lies in the breadth and depth of our software and services portfolio and the scope of our
market coverage.
Personal Systems Group. The areas in which PSG operates are intensely competitive and are
characterized by rapid price reductions and inventory depreciation. Our primary competitors for the
branded personal computers are Dell, Acer Inc., ASUSTeK Computer Inc., Apple Inc., Lenovo Group
Limited and Toshiba Corporation. In particular regions, we also experience competition from local
companies and from generically-branded or ‘‘white box’’ manufacturers. Our competitive advantages
include our broad product portfolio, our innovation and research and development capabilities, our
brand and procurement leverage, our ability to cross-sell our portfolio of offerings, our extensive
service and support offerings and the availability of our broad-based distribution of products from retail
and commercial channels to direct sales.
Imaging and Printing Group. The markets for printer hardware and associated supplies are highly
competitive, especially with respect to pricing and the introduction of new products and features. IPG’s
key competitors include Canon U.S.A., Inc., Lexmark International, Inc., Xerox Corporation, Seiko
Epson Corporation, Samsung Electronics Co., Ltd. and Brother Industries, Ltd. In addition,
independent suppliers offer refill and remanufactured alternatives for our supplies which, although
generally offering lower print quality and reliability, may be offered at lower prices and put pressure on
our supplies sales and margins. Other companies also have developed and marketed new compatible
cartridges for HP’s laser and inkjet products, particularly in jurisdictions outside of the United States
where adequate intellectual property protection may not exist. In recent years, we and our competitors
have regularly lowered prices on printer hardware both to reach new customers and in response to the
competitive environment. Important areas for future growth include printer-based multi-function
devices in the office space, digital presses in our imaging and graphics space and driving color printing
expansion in the office. We believe we will continue to provide important new contributions in the
home, the office and publishing environments by providing comprehensive solutions.
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