HP 2012 Annual Report Download - page 47

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 server and storage
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: Personal Systems (formerly
known as the Personal Systems Group or ‘‘PSG’’); Printing (formerly known as the Imaging and
Printing Group or ‘‘IPG’’); Services; Enterprise Servers, Storage and Networking (‘‘ESSN’’); 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 and infrastructure 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, particularly in our focus areas of cloud, security and analytics, and to be 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 are
leveraging 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
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