HP 2010 Annual Report Download - page 44

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 solutions, information management software 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. 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 publishing 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, while also delivering services for
that converged infrastructure in a manner that best fits each client’s needs, be it at a client site, as an
outsourced service via the Internet or via a hybrid approach. 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 are working to optimize efficiency 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
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