KUHN CAPITAL Sunday, February 25, 2018
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HP-Compaq Face Service Integration Challenges

Palo Alto -

With a likely favorable vote inevitable in the Compaq/Hewlett-Packard merger, the integration of the services organizations will soon begin. It won't be an easy task.

Reports have HP exec Ann Livermore leading the $15 billion service organization from palo Alto headquarters.

As HP and Compaq work to combine the two services operations, they will need to be certain that client services aren't severely damaged.

In defining the relationship of the services organization to the rest of the combined company, former Compaq Global Services executive Michael Chuli says that HP should borrow a page from the IBM Global Services playbook and create an entirely separate business unit. "You can't let products drive your services strategy. They have to empower their countries, regions and geographies to make service decisions in lieu of product decisions," said Chuli, now CEO of Management Services Provider Coradiant Inc. in Boston. "You need full [profit and loss] capability around the globe," he added.

In its integration efforts, the combined company needs to make clear what it wants to do in the three categories of services businesses that it is a part of: break/fix, systems integration and high-end professional services/outsourcing, asserted Chuli.

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