Hewlett-Packards Mark Hurd He Wants It All

Hewlett-Packard Chief Executive Mark Hurd likes things big and simple. His boardroom has a big dull list and a big videoconferencing screen. A large inscription of vacant paper leans on a tripod, permitting him to blueprint big numbers to sign a point. The bedrooms solitary emblem is an outsize cylinder ripping detached with springs. Its tag reads, "big can of whup ass."emailprintreprintnewslettercommentssharedel.icio.usDigg It!yahooFacebookTwitterRedditrssforbes:http://www.forbes.com/forbes/2010/0412/technology-hp-mark-hurd-ibm-cisco.html?partner=yahoobuzzHurd has finished his share of whuppin" given he took over HP in Apr 2005. The association had pulled in $80 billion of income for the Oct. 31, 2004 mercantile year, a figure perceptibly altered over the 4 years given the partnership with Compaq Computer. For mercantile 2009 the take was $115 billion, or annualized enlargement of 7% over the last five years. Net income during that duration has been up an normal 18% per annum to $7.7 billion and jolted forward 25% in the initial mercantile entertain of 2010. All this is interjection to thespian cost-cutting, the standardization of large-scale purchases similar to semiconductors--and a brutalizing enlightenment of burden for each penny in and out.HPs arch has additionally imposed a cruel potency at the top levels. By make-up the house and comparison government with some-more Midwesterners than Silicon Valley insiders, and adding a lot some-more hard-core commercial operation sorts than engineers and inventors, he has transformed HP some-more in his own image--people who flower on restlessness and lust for expansion. You see it reflected in the Aug 2008 $13.9 billion merger of Electronic Data Systems ( EDS - news - people ) and the new $2.7 billion grab of 3Com ( COMS - news - people ), the Chinese networking company, and in the relentless pull to grab new large customers. "Growth comes about two-thirds from M&A, 25% organic"--that is, winning commercial operation from rivals--"and 10% from a big new idea," says Hurd, 53. "We are right away $20 billion bigger than IBM, in a $1.7 trillion marketplace for technology. For us it breaks in to enterprise, SMB [small and middle businesses] and consumer." But for all that, 70 cents of each HP income dollar comes from 2,000 big companies.Size counts in this business. With the blast of computer networks and data, customers--willing to bombard out for multiyear contracts of tens of millions of dollars and more--need a businessman that can conduct majority aspects of majority businesses and assistance them find efficiencies inside of and between them. Clients dont wish to understanding with a dozen opposite salespeople from as majority opposite companies each time they ascent apparatus or deliver a new app. The new titans of the one-stop universe embody Oracle, that not long ago combined to the database sovereignty the stays of Sun Microsystems ( JAVA - news - people ), builder of computer servers; IBM, the longtime consulting, program and mainframe powerhouse; Cisco Systems ( CSCO - news - people ), right away with servers built in to the network, and alliances with interpretation storage hulk EMC and virtualization program builder VMWare.Hurd intends to grab as majority of that movement as he can. Last year he outlayed a lot of time job on commercial operation and prospects, assembly with rounded off 3,000 arch report officers worldwide (mainly by roundtables) and is on lane to surpass that series this year. It equates to offered a lot some-more than the low-margin personal computers and printers that have up majority of the HP brand, some-more than the poor outsourcing and upkeep deals the association changed in to prior to Hurd arrived. Since afterwards he has pushed in to supposed industry-standard computers--machines built with off-the-shelf commodity chips--and paid for companies in markets associated to HPs core hardware and use businesses. In Jan it voiced a $250 million investment with Microsoft ( MSFT - news - people ) to rise and marketplace hardware, program and services for clouded cover computing, a approach of removing at supercomputing energy by an Internet browser. Putting on a new face, HP is spending $40 million on "Lets Do Amazing," a rebranding ad campaign. Hurd, in alternative words, is receiving approach target at IBM and Cisco, whose consulting and networking businesses are between the last high-margin sells in the cutthroat universe of tech.HPs sales force of 20,000 or so is scurrying. Over ten days in Feb Bruce Dahlgren, who heads up the managed imitation businesses worldwide, was in California to see Hurd, afterwards in Taiwan to encounter with manufacturers, China for a patron sales event, Texas to plead sales plan with former eds consultants, Japan for meetings with commercial operation and Bali, Indonesia to sight his informal staff. "Theres a mental disorder I live with," he says. "Somewhere in the world, right now, theres a salesman articulate with a customer--I goal he is as great as I need him to be."Bring it on, contend the incumbents. "HP has changed down-market, not up," says Steven Mills, IBMs organisation senior physical education instructor for software. "They have a gloomy jot down in software. I"ve been pounded by commoditizers forever--over time the patron notice of worth keeps logically relocating up." By his tab IBM has snatched 180 program contracts from HP over the last five quarters, together with deals with Whirlpool ( WHR - news - people ), Navistar, the Spanish application Endesa ( ELE - news - people ) and Mexicos word giant, Grupo Nacional Provincial. (HP disputes the 180 figure.) Nevertheless, in a Dec. 7, 2009 memo Alfred Zollar, a ubiquitous physical education instructor in IBMs complement government program business, exhorted his infantry to "keep the vigour on HP."Cisco seems to be receiving Hurd utterly seriously. In Mar the association cut off HP, claiming, in a video expelled to the public, that HP didnt share the "network-centric vision" for the destiny and that "it no longer done sense" to give it any discernment in to Ciscos destiny offerings. "HP is obviously a competitor," says John Chambers, Ciscos arch executive, in what can be taken as the idealisation compliment--or threat.Coming over from NCR, Hurd had a repute for slicing costs (and heads) and focusing on areas of intensity growth--data warehousing in that case. His initial regard at HP was that handling distinction was a trifling 5.3%. "That equates to that out of $79 billion in revenues, they outlayed $75 billion," he notes. "You begin asking, "How did you outlay it?""Sidebar:Jewel In Its Crown
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