Dec 13, 2005 11:24am PST, HP reveals recovery strategy, by Marguerite Reardon, editor, CNET News• Hurd said revenue should grow to $91 billion dollars in fiscal 2006, up from $89.5 billion the previous year. In fiscal 2007, which begins in November 2006, profit margins are expected to grow to 8 percent, up from 7.5 percent the previous year. Specifically, HP is focusing on three main businesses: enterprise virtualization, high-end printing and mobility. Vyomesh Joshi, executive vice president of the imaging and printing group, said it will take a combination of all these smaller printing markets to achieve target revenue growth of 4% to 6%. • Since taking the reins from former CEO Carly Fiorina, Hurd has focused on cutting costs. It has cut more than 15,000 jobs in the past six months and restructured the company, eliminating a sales division.• Pursue smaller companies that will help fill product and technology gaps in markets HP is already focused on.• Critical for Achieving financial goals depends on how well the company executes its strategy. Hurd said that in addition to introducing more incentives for its workforce to increase productivity, HP needs to focus on improving leadership and promoting greater accountability within each division of the company. I have some suggestions for HP's board of directors:1. Bring the HP back. Cut back on the silly stuff and reintroduce morning croissants to begin with. Productivity is expected to increase significantly.2. Give value to your employees. Make them believe in the company again, not just the weekend check. Involve them, train them, give them the feeling that HP is a family once again. They will become your best sales force, your best consultants, your best customer contacts.3. Double your R&D. Redesign the expensive laptop, the bloated PC. Creating appliances for SMBs (biggest growth potential ever). Make bold decisions in terms of partnerships (ISPs, cable operators, etc.). Become a trend-setter again.A friend._________________________________________________________________________________January 23, 2006 4:00am PST, HP lays out long-term strategy, by Dawn Kawamoto and Tom Krazit, staff writers, CNET News• Hurd has previously said that market trends they indicate a move away from mainframe computers to blade servers, as well as virtualized storage. HP is likely to follow these trends. • Mott will help HP implement the back-end processes needed to operate a world-class direct order website. • Information-intensive activities such as collecting and sorting reams of customer data and quickly reacting to changes in component costs are critical to improving the efficiency of a direct sales operation and Mott's experience in Implementing such a system at Dell will be invaluable to HP.