The tech world is becoming more competitive as one-time partners are seeing rivalries evolve.
For instance, Hewlett-Packard CEO Meg Whitman stated recently how HP partners Microsoft and Intel are becoming the company’s competitors.
That may not be a surprise to consumers, but having the CEO say the words to Wall Street analysts gives it additional credibility.
“Current [HP] partners like Intel and Microsoft are turning from partners to outright competitors,” Whitman said. “We are seeing profound changes in the competitive landscape.”
In the case of Microsoft, it and HP both sell devices, services and software.
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This means that original equipment manufacturers (OEM) such as HP are no longer just companies that provide products using Microsoft software. But Microsoft still has an important role to play.
Readers of TechCrunch debated what it means for the sector. For instance, Nick Ferruzzi said on a comment page, “Microsoft is a necessary evil. If every PC/Laptop manufacturer had their own [operating system] it would be a nightmare.”
And another user wrote, “With cloud computing it doesn't matter. Microsoft is no longer selling to OEMs. They are not stupid.”
In addition, HP saw a 20 percent decline in revenue for personal computers in May, and “Whitman began distancing HP from Microsoft Windows,” Business Insider reported. “At that time, she had played up HP's non-Windows devices during a conference call with analysts, its Android tablet and Chromebooks.” In August, HP saw an 11 decline in PCs. In response, HP and Google are offering a new Chromebook for $279.
Microsoft also offers the Surface line of PCs. It also acquired most of Nokia's device business for $7 billion. These can step on the toes of companies like HP.
In addition, Intel is competing with companies like HP, by now offering cloud computing and computer security.
Also, analysts are aware of the significance of Whitman’s recent statements.
“Whitman didn’t mince words when she called out Intel and Microsoft as competitors,” Patrick Moorhead, an analyst at Moor Insights & Strategy, told VentureBeat. “Intel is arming server original device manufacturers (ODMs) like Quanta with technology to compete with HP’s servers. Microsoft is competing head to head with HP with their Surface line and with Azure-based cloud services. As a result, HP is embracing Android, Chrome OS, OpenStack, and system-on-a-chip solutions (SOCs) from Nvidia, Rockchip, Applied Micro, Calxeda, TI, and SRC.”
Edited by Alisen Downey