Palm to operate as a "business unit" within HP
There are two huge questions we had with regards as to how Palm would be merged into HP. First: what would happen with webOS (they’re going to keep it - that's why they bought Palm). Second: what would happen to Palm the company?
Here’s the word, straight from HP during today’s conference call: “We intend to operate it as a business unit, which is in line with the way we’re structured today.”
So the question is, what is a business unit with HP? Hewlett-Packard is currently organized as a series of loosely inter-connected ‘business units,’ including the Imaging and Printing Group (printers, scanners, and cameras), Personal Systems Group (desktops, laptops, handhelds, and miscellaneous ‘personal’ connected devices), Enterprise Business (servers and networking), Software & Solutions (corporate software), and the Office of Strategy and Technology (research and development, marketing, and mergers and acquisitions). Judging by this hierarchy, we’d say that Palm is due to operate independently of but alongside the Personal Systems Group. That’s not to say that Palm will be operating with any degree of autonomy, but given that the majority of Palm staff, including CEO Jon Rubinstein, look to be staying aboard, we wouldn’t count on any major changes in the way Palm operates.