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How does the strategy for client devices to data center change with a PSG spin-off? Will PSG establish relationships with other vendors besides HP?
Let me give you a very broad answer to that question. I think it is almost repetitive of what [HP Chairman] Ray Lane has said publicly. The reason to do this is to enable PSG to respond more quickly to the market that it competes in.
I'm going to leave that as the red meat in front of a bunch of dogs because that is the way we are going to view this.
Are you as optimistic about the PC business today as when you took the job?
Broadly yes. I think the world has clearly changed a lot over time. And when I joined HP six years ago, I think we were more defensive than offensive. My job is not to try to replicate somebody else's business model. HP wins when we are HP. PSG wins when we are PSG. And I can guess that there are a lot more people that try to mimmick what we do today than we mimmick what they do.
Talk about what kind of sales impact have you seen from the PSG spinoff announcement on the North American commercial sales channel.
I would characterize clearly [there is] uncertainty broadly based on the communication. As I got involved and my team got involved, we tried to drive as much clarity as we can around the situation.
I would say short term the sales pipeline looks good. For some of our competitors, this is frankly almost the only opportunity to crack the strength that we've built at HP. They are using it, and frankly we will battle that extraordinarily hard. Myself and the team at PSG, we got relatively late into the process so we are just now at the point of getting the right incentives in place, getting the right funding models in place, and the right advertising in place.
You saw some of our advertising run very, very broadly last week. You are going to see a lot of TV advertising around products -- 15 second [spots about] product and product attributes.
I think the core message hasn't changed. The fundamental difference is PSG over the past six years has built a phenomenal business with our partners, helped our partners build phenomenal businesses and we have built a phenomenal business inside of the largest IT company in the world.
We have built and when I say we -- the team within PSG and our partners, have built the largest PC company in the world and the largest, most profitable, biggest channel in the world.
What is going to happen soon as we complete this process is the largest PC company that is a division of the largest IT company will be a stand-alone, publicly-held largest PC company in the world, over $40 billion in revenue, over $2 billion in operating profit, operations in over 170 countries. The same people that built that huge division are going to now build an even bigger and better PC company standing on its own.
Can you guarantee that it is going to be a stand-alone company and it won't be sold to another company?
I can not use the word guarantee. I can use the words that this is our preferred option. I think that is as much as we can say right now. This will get very clear over the next several weeks leading up to the end of the year.