HP 2011 Annual Report Download - page 45

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:
• personal computing and other access devices;
• 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;
• imaging and printing-related products and services; and
• enterprise information technology infrastructure, including enterprise storage and server
technology, networking products and solutions, IT management software, information
management solutions and security intelligence/risk management solutions.
We have seven business segments for financial reporting purposes: the Personal Systems Group
(‘‘PSG’’), Services, the Imaging and Printing Group (‘‘IPG’’), Enterprise Servers, Storage and
Networking (‘‘ESSN’’), HP Software, HP Financial Services (‘‘HPFS’’) and Corporate Investments.
Our strategy and operations are currently focused on the following initiatives:
Strategic Focus
The core of our business is our hardware products, which include our PC, server, storage,
networking, and imaging and printing products. Our software business provides enterprise IT
management software, information management solutions and security intelligence/risk management
solutions delivered in the form of traditional software licenses or as software-as-a-service that allow us
to differentiate our hardware products and deploy them in a manner that helps our customers solve
problems and meets our customers’ needs to manage their infrastructure, operations, application life
cycles, application quality and security, business processes, and structured and unstructured data. Our
Converged Infrastructure portfolio of servers, storage and networking combined with our Cloud Service
Automation software suite enables enterprise and service provider clients to deliver infrastructure,
platform and software-as-a-service in a private, public or hybrid cloud environment. Layered on top of
our hardware and software businesses is our services business, which provides opportunities to drive
usage of HP products and solutions, enables us to implement and manage all the technologies upon
which our customers rely, and gives us a platform to be more solution-oriented and a better strategic
partner with our customers.
Leveraging our Portfolio and Scale
We offer one of the IT industry’s broadest portfolios of products and services, and we leverage
that portfolio to our strategic advantage. For example, we are able to provide servers, storage and
networking products packaged with services that can be delivered to customers in the manner of their
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