Business Agility Drives Tech Companies To Divide And Innovate – At 60 Billion Are The HP Companies Small Enough?
Blog: Craig Le Clair's Blog
Somewhat lost in the discussion of HP splitting into two is whether breaking into smaller companies is an unstoppable trend in the tech sector. HP plans to break itself apart, creating two approximately $60 billion, publicly owned, global companies. No one would consider these small. Companies at a certain size just can’t execute at the speed of digital customers today. Heres our take on why.
Marc Adreessen made the point well at Dreamforce last week. He basically said that tech companies are different from others in that their product is really innovation. The products driving revenue today will be different in three years or less. By contrast, the Campbell Soup Company made soup 50 years ago, and while they may acquire other retail food companies, they will still be selling soup 50 years from now.