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Tuesday, January 31, 2006

Computer Consulting News: HP Chooses Vignette CEO to Head Software

On January 26, Hewlett-Packard chose Thomas Hogan, CEO of Vignette to lead the company’s software business. HP’s software division has been struggling to survive, particularly since Nora Denzel resigned in late 2005.

Before 2001, when Hogan began at Vignette, he spent two years as Senior Vice President of worldwide sales and marketing at Siebel Systems. Prior to working at Siebel, he spent 17 years in a variety of positions at IBM. Spokespeople at HP are confident that his many years’ of experience in different areas of computer consulting and administration have given him valuable tools and new ideas to help new software development.

Hogan is entering the HP software business unit in the midst of a challenging time. HP’s fiscal year ended on October 31, 2005, at which point the company’s software unit reported revenue of only $1.07 billion and an operating loss of $59 million. The company’s overall fiscal revenue in 2005 was $87.8 billion, with earnings of $3.5 billion.

Solution providers and computer consultants at HP have said that software attach rates that go along with HP hardware sales often total less than 10 percent of the sale. Leader of HP executives, CEO Mark Hurd, and his team have decided that bundling more HP content into a solution is one of the top priorities for the coming year and plan to reward partners that sell these complete HP packages.

Blogged By: Computer Consulting 101 Professional Kit