HP 2010 Annual Report Download - page 4

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BladeSystem Matrix and Virtual Connect
significantly advance our strategy for
converged and cloud-based infrastructures.
Our ProLiant G7 servers deliver vastly
improved performance, a much lower cost
of ownership, and a return on investment
measured in months. CloudStart helps
clients quickly and easily realize the
benefits of cloud computing. StoreOnce
provides deduplication technology that
comes straight out of HP Labs. In PCs
and printers, TouchSmart and ePrint are
redefining how we interact with technology
and how we share the experiences of our
life and work.
We are also continuing to build our
portfolio through acquisitions, and the
marketplace offered several strategic
opportunities in fiscal 2010. With the
acquisition of Palm, Inc., we added the
most modern operating system in the
market, positioning HP to drive innovation
into the fast-growing area of connected
mobility. In an increasingly mobile and
cloud-based environment, security and
storage solutions are critical for our
customers. We are building out a security
offering, helped by the recent acquisitions
of ArcSight, Inc.; Fortify Software Inc.; and
3Com’s TippingPoint business. In addition,
our recent acquisition of 3PAR Inc.
provided essential storage technology for
high-end and cloud environments. At the
foundation of the data center, enterprises
are embracing converged infrastructure that
is flexible, scalable, and shareable. With
our acquisition of 3Com, we filled out our
networking portfolio to deliver unmatched
capacity, efficiency, and value. With HP,
customers can realize tomorrow’s next-
generation converged infrastructure today.
FISCAL 2011 PRIORITIES
As we look to fiscal 2011, HP will continue
to move aggressively to drive growth,
expand margins, and deliver unparalleled
value to our customers and stockholders.
We expect to grow by investing in
portfolio enhancements and acquisitions,
by covering more of the market with
our sales force and channel partners,
and by expanding that coverage more
aggressively into high-growth emerging
economies. Additionally, we plan increased
investments in innovation. Over the last
few years, we have rationalized our
research and development spend, reduced
inefficiency, and focused more acutely on
practical applications, while at the same
time delivering industry-leading products
and technologies. Looking ahead, we will
continue to speed the innovation cycle and
deliver new technologies to market at scale
with impact.
Our focus on margin expansion will also
continue in the year ahead. We do this
by increasing gross margins through a
more profitable business mix and through
efficiencies. In a company of HP’s size,
there are always opportunities to achieve
a higher level of efficiency, and major
initiatives in our supply chain operations,
real estate portfolio, and service delivery
model are expected to have a positive
impact on our operating leverage in
fiscal 2011.
We expect HP to continue moving up
the technology stack into higher margin
categories. By further developing our
intellectual property portfolio, we plan to
differentiate HP and leverage the enormous
power, scale, and breadth of our market-
leading products across the data center,
printing, PCs, and mobile devices. This is
the key to making HP the leading provider
of strategic solutions that address our
customers’ biggest challenges.
A LETTER FROM THE CEO
HP ANNUAL REPORT
|
2010