Software Is Important
If nothing else, Microsoft has shown once again that software is integral to the success or failure of a company. Admittedly, Microsoft is a software company, so it makes it easier for the company to capitalize on it than HP would. But now that HP is attempting to compete in the mobile market, and its efforts in the computing space are expanding, software must play a major role in its strategy. As important as hardware and the cloud are to HP’s bottom line, software must also play a major role.
Dominance Means Little
Dominance in any market is only as useful as a company makes it. Although Microsoft has stayed atop the software space for the past 15 years, the company has watched as its market capitalization has been sliced in half. Meanwhile, Microsoft was forced to layoff employees for the first time in its history last year because of its financial troubles. Currently, HP sits atop the PC market, easily besting Acer and Dell. But that doesn’t mean anything. Acer is growing at a rapid rate, and Dell is trying to redefine itself. Simply leading other competitors means nothing.
Hardware Is A Tough Business
Microsoft spends most of its time on software, but when the company has ventured into hardware, it has quickly realized that it isn’t nearly as easy as companies like Apple make it look. HP should be learning that lesson too. Although HP has done well in the computing space, it has yet to really prove itself in another sector of the market. For example, the company’s iPaq devices failed to adequately attract consumers. Even its Slate, which was scheduled to compete with Apple’s iPad, has mysteriously gone AWOL. Microsoft has shown time and again that hardware is a tough business. Now it’s time for HP to not make the mistakes Microsoft has.
The Future Is Different
HP might be a wildly successful company today, but the future is a much different place. It needs to embrace that. Over the past 10 years, Microsoft has watched as Apple and Google, two largely inconsequential companies at the turn of the century, have destroyed Microsoft’s position as the most dominant company in the market. Microsoft failed to believe that the future would really be different. It ostensibly thought that the market today would look like the market 10 years from now. It was wrong. HP can’t afford to make that same mistake.
The Enterprise Is Key
The enterprise has proven to be the key to Microsoft’s operation. With its help, the company has been able to maintain Windows’ dominance, maintain Office’s position as the leading productivity tool in the marketplace, and keep all of its competition in other markets at bay. HP can be the same company for its many enterprise solutions if it follows the right strategy. Unlike Apple, which has had a contentious relationship with the enterprise, Microsoft maintained a strong tie. It helped. HP can do the same with its own enterprise-relation efforts. Although consumers typically get the most attention, the corporate world is where companies can revitalize an operation. HP can’t forget that.
Complacency Is Dangerous
Microsoft has been complacent for the last 10 years. Rather than attempt to stay ahead of the competition with the very best products its money could buy, Microsoft instead decided to coast. It allowed Internet Explorer to go awry. It watched as Windows lost its way. And it even allowed Google to become the most powerful (and dominant) company on the Internet. HP could fall into that same trap. The company is arguably late to the tablet game. It hasn’t done anything to innovate in the computing market. And even its enterprise efforts are less than stellar. It ostensibly believes that it can stay on top without much effort. Think again, HP.
Innovation Is Key
Following that, it’s important for HP to remember that innovation will dictate success in today’s marketplace. By being complacent, the company is simply allowing the marketplace to dictate its future potential. But with innovation, it can stay ahead of that competition, and determine for itself where those companies will go. Lately, Microsoft has been realizing that innovation is important. The company has made significant strides online, and even Windows 7 has proven to be the operating system that Vista and XP should have been. HP should see that and start doing its best to follow suit in its own markets. Innovation will determine future success.
Size Is A Liability
Size can be a liability in the tech space. Microsoft might not have been the "evil" company that so many said it was throughout the years, but its size said otherwise. Big companies are not always well-respected. And even if they are, they’re distrusted by those who might find more value in smaller firms. HP can’t allow the issue of its size to make it cumbersome, as Microsoft did. The market is too big, the revenue potential is too high, and the risks are too worrisome for its size to get in the way.
The Competition Is Dangerous
Make no mistake, HP’s competition is extremely dangerous. Whether it’s IBM, Dell, Apple, or any other company that it takes on in different markets, the company is facing firms that want to take it down. That’s important for HP to know and acknowledge. Unfortunately, Microsoft hasn’t. It has allowed its size to get in the way of its judgment. It still believes that by virtue of its dominance in the operating system market, it will continue to control the industry. It’s a faulty belief that flies in the face of all of its issues throughout the years. Both Microsoft and HP are facing real dangers from the competition. And it’s about time that they realize that.
The Mobile Business Is Tough
The mobile business is arguably one of the most hotly contested markets in the industry right now. Regardless, HP’s decision to acquire Palm has caused some to wonder why the company would try its luck in that space. After all, Apple is currently dominating that market, and Google is quickly gaining ground. Microsoft, the company that HP should consider when attempting to break into the mobile market, hasn’t been so successful. The software giant has watched as its power and influence have waned. Now it’s HP’s turn. Like Microsoft, the company needs to see the writing on the wall and deliver an operating system that can compete against Apple’s. Microsoft will soon have Windows Phone 7. HP must make WebOS a suitable alternative.