This is not Hewlett Packard CEO Leo Apotheker's first visit to Israel. Apotheker, who joined HP eight months ago, has been in Israel many times, including in his previous managerial positions at SAP, and years ago he was even a student at the Hebrew University. So, he was able to get away with opening his speech last Thursday at the Presidents' Conference in Jerusalem by saying, in Hebrew: "Good morning, ladies and gentlemen. Surprise! I speak Hebrew."
Apotheker told the President's Conference that he has a special attitude towards security. "HP is the fifth largest company in the world in this field, and the transition to cloud computing - in other words the ability to receive data and software from distant data centers - makes the traditional approach towards security completely insufficient."
Apotheker spoke about other similar issues at the Presidents' Conference. He said that, "HP is currently working with some of the most important security companies in the world, and it is pretty scary what is happening out there. We are living in a scary world. Security is one of the few things standing between where we are now, and an entirely connected and digital world: the need for security is delaying innovation."
There is huge interest surrounding his visit because this is the first time he is in Israel as the CEO of the biggest computer company in the world, which is expected to have sales of $130 billion this year.
Apotheker took office after Mark Hurd, who moved to the position of president at Oracle, which has meanwhile turned into HP's rival. Hurd left under embarrassing circumstances: he was charged with illegally withdrawing funds from HP in connection with allegations of sexual harassment.
Regardless of events that transpired within the company, the entire field of computing is being shaken up. Apotheker is trying to carry out strategic and organizational changes within the company. Among other things, a number of senior managers have left the company recently, most prominently among them Ann Livermore, former Executive VP of the HP Technology Solutions Group, which is responsible for about half of the computer giant's revenue.
Apotheker's schedule during his visit included participating in the Presidents' Conference plenum on Thursday morning, immediately followed by a visit to the HP development center in Yehud -- which it inherited when it bought Mercury -- where he participated in a closed event with SAP and a few hundred leaders in the computing field. During the event, Apotheker focused on HP's strategy and the changes the company is going through in order to accommodate the new era.
"HP has a history of innovation," said Apotheker at the company's development center. "Throughout the company's 70 years of existence, HP has been supplying innovation and technological leadership at each turn the industry has taken. We are once again at such a turning point. Yes, HP is strong, but we recognize that the world around us is changing more rapidly than ever." The significance of this for HP is that the company's R&D needs to be strengthened, as well as the hot sectors: cloud computing, software and services.
HP sells a variety of computing products worth more than $50 billion a year, as well as additional hardware solutions and other services. The company's share value has plunged 25% since Hurd left his position in August 2010, and its market cap is currently $73 billion.
Despite its need for change, Apotheker emphasized at the event with the industry leaders, that even while they implement changes in the traditional way they do business, they still have many assets. "People love to work on personal computers, and that is not going to disappear. And yes, people need to print documents."
The company plans on using the WebOS operating system, among others, which it acquired when it bought phone manufacturer, Palm, a year ago. The operating system, which Apotheker has called "unbelievably attractive and innovative," is planned to be used as an HP application in the various HP computer devices, and to provide a transparent connection between them. Apotheker said that there is a potential to supply 100 million devices that run WebOS a year, including personal computers, tablets and cellular phones.
In the tablet sector, HP will soon launch the TouchPad, but Apotheker did not have an estimated launch date. Some of the changes will apparently be accompanied by acquisitions, and Apotheker said that HP has "a disciplined acquisitions strategy."
He added that at the end of the current decade, there will be 40 billion devices connected to the internet. "These will be sophisticated devices, that will change the way we, as companies, communicate with our clients," Apotheker said at the Presidents' Conference. "We also need to change the way governments communicate with its citizens. In a digitally connected world, no one will have to stand in a line to receive a form. All of these changes have brought about an intense need for a more secure environment."
Published by Globes [online], Israel business news - www.globes-online.com - on June 26, 2011
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