The continued investment in R&D is a sign of the latest leadership and could lead to a new approach to revenue streams, claimed Roy Illsley, analyst at Ovum.
Rather than Hurd's approach of cost cutting and gaining new technologies through acquisitions, Illsley said Apotheker will go for more internal funding so HP can research and develop its own new products for market.
"This new emphasis on finding the future revenue streams from within makes sense," said Illsley. "HP has a great deal of talented people, but spending on [research] alone is not a guarantee of success. HP must also adopt new management processes to foster innovation and embrace an entrepreneurial culture if it is to succeed."
"The increase in spending on research and development at HP is a signal that the company recognises the need to move beyond the current cash generator activities and efficient business processes, and to find new profitable revenue streams in the future."
However, the company has predicted a slight fall in revenue for the first quarter of fiscal 2011, coming in between $32.8 billion and $33.0 billion, so it may take some time before the research pays off.
