Current Microsoft employee says the PC division is what makes HP who they are

Sep 9, 2011 08:36 GMT  ·  By

HP's recent business direction decisions are once again coming under fire, so to speak, although the most recent comments on the part of a certain former HP employee are a bit more tame than what has, so far, been said.

Some end-users may recognize the Rahul Sood as the name of a former high-ranking HP employee and one that is, currently, in Microsoft's employ. Sood was also the co-founder of VoodooPC boutique PC maker.

He recently agreed to an interview with X-bit Labs, where, among other things, he said a few words about HP's recent business decisions.

To offer some context, HP, not so long ago, said it had decided to completely change its business layout by giving up the PC segment altogether.

The main goal is to spin off the $40 billion PC division, or sell it if that doesn't work.

Needless to say, though Dell saw this as a good thing (it meant it could gain more market share), mostly everyone was shocked at the news.

Sood is among those who do not see the move as a good idea, although he does use a somewhat tame choice of words in comparison to everyone else.

"My guess is [Leo Apotheker] sees challenges internally in PSG, he doesn’t fully understand how the hardware business operates, and he feels that hardware margins are far too slim to bother with. In my opinion hardware is the footprint that makes HP who they are,” said Mr. Sood in an interview with X-bit labs.

“HP’s gigantic PC footprint is easily their biggest strength, not their software and services. If HP could leverage their biggest strength in a meaningful way they’d be almost unstoppable."

The decision came at the same time as the scrapping of all webOS projects, not that this prevented the TouchPad from selling like bread afterwards.