HP Software Group Set For Major Restructuring
The memo, from Tom Hogan, senior vice president of HP Software, dated Sept. 16, went out to HP Software and HP C&I employees one day after HP said it would cut 24,600 jobs in the wake of its $13.9 billion acquisition of systems integrator EDS. An HP spokesperson confirmed that Hogan sent the memo and that the changes had not been publicly announced. She declined additional comment.
The organizational changes will become effective in the U.S. Nov. 1, according to the memo that has a subject heading "HP Software Reorganizes to Build Software/Services Organization." The memo makes reference to a "first-quarter launch" in "six weeks" for the new organization. (HP's first fiscal quarter begins Nov. 1.)
"Given the significant expansion in our skills and abilities to deliver more end-to-end solutions, and in many cases solutions that do not depend exclusively on software-based IP, we have also elected to change the name of the organization from HP Software to HP Software and Solutions," Hogan said in the memo.
Most of the memo details four major changes in the HP Software organization:
- A new Business Intelligence Solutions unit will be led by Kristina Robinson, currently the vice president of enterprise sales and services for HP's Americas Image and Printing Group. The new unit will combine the Neoview organization, HP Software's current BI unit, and the C&I business intelligence practice. Robinson, who previously worked at NCR's Teradata company before joining HP, will report to Hogan and work with Ben Barnes, vice president and general manager of the Business Intelligence Group.
- HP's Communications, Media and Entertainment organization and OpenCall organization are being combined to create the Communications and Media Solutions unit. It will be lead by Erwan Menard who joined HP three months ago from Alcatel.
- A new Software Products organization will be headed by Robin Purohit, who currently runs the HP Software Information Management unit. The memo said Purohit will replace Ben Horowitz, vice president and general manager of the Business Technology Optimization, Software, Technology Solutions Group, who is leaving HP effective Nov. 1. Purohit will name his successor at Information Management, the memo said, while Jonathan Rende will continue to manage the BTO Applications unit and Ronnen Armon will continue to run the BTO Operations unit.
- The Service Management and Information Lifecycle Management practices from C&I will merge with the software group's Service and Support organization under Andy Isherwood. The combined organization will "drive services attach around our BTO and [Information Management] software businesses," the memo said. The organization also will provide sales support and delivery services worldwide for all HP Software and Solutions business units. And education services for BTO and Storage Management will join the new Service and Support organization while education teams for Neoview will become part of the new Business Intelligence unit.
The memo said the remainder of the HP Software executive team "will remain unchanged at this time."
"Change is exciting. Change is also risky as it creates disruption," Hogan said in the memo. It implores employees to not get "distracted" with all the changes, adding that: "We must execute and deliver another record quarter."