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Uncertainty Over HP's PC Group: Who Stands To Benefit?

When HP last month said it is evaluating alternatives for its Personal Systems Group (PSG) business, including a possible spin off or sale, it created uncertainty among partners and customers but opportunity for competitors.

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Regardless of PSG's fate, with proper follow-through the long-term result is likely to show HP the overall winner.

If HP decides to keep PSG inside the company, things would likely resort to the previous status quo. Life at HP would go on as before.

However, a separate PSG tied to HP via a common brand name and/or channel program would result in two even stronger vendors. The new HP PC business would still be the top PC vendor, but with a mandate to focus exclusively on that market. And HP, shorn of its low-margin PC business, would be a more formidable enterprise competitor, especially to investors who like the higher-margin enterprise business.

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