http://online.wsj.com/article/SB10001424053111903596904576516403053718850.html?mod=WSJ_Tech_LEADTop

One man’s insanity is another man’s genius.

I like H-P’s plan to sell off its computer division. I remember buying my first H-P calculator the H-P 35 (circa 1970s). It is in pieces (age and use) but it is still in my desk. I have owned an H-P laptop and desktop computer. I like the product. However, to be frank the computer and laptop business is a a low margin business. Being Number 1 in the world in a low margin is not a bad thing.

However, when you consider the fact that the information world is migrating to a cloud-environment, the move makes absolute sense. When you look at the long term, the time to move into the cloud environment is now.

The computer and laptop business will be here for years. However, the “cloud” that all Wall Street types have been hyping for the last few years is not HYPE it is REAL now. In a few years most users will be using that “cloud” in the sky to manage their applications, data processing needs, and possibly even storage needs. This will allow CPU power in mobile devices, computers, tablets, and whatever else device manufacturers think of in the next few to be used for video and audio drivers.

Bottom line, the move makes sense.

By the way there is nothing wrong with the desktop computer and laptop business. It may be a low margin business but people will still need devices that have computational power and storage that is independent of the “cloud” or external providers of services. Therefore this business will not disappear it will just become a commodity business, which is not a bad thing.

I think H-P’s decision is ingenious and bold. The timing could not have been better. Better now than later when the computer business is losing money and the division is in the red.  Companies cannot shift gears and change business direction on a dime; it is not possible.  Moves as encompassing as H-P's are, require time.  Better now than later.

I am sure there will be someone out there willing to buy the computer business. This is a cash flow business.

The concern people should have is: Will H-P be able to monetize the information analytics business it just purchased? Autonomy is the company’s attempt to strengthen its enterprise efforts. H-P needs to be able to execute the sale of its computer business and entry into the information analytics business nearly flawlessly or else Wall Street will tear the company to shreds.