HP After Growth Acquisitions, Not Consolidating Acquisitions
Talk a little bit more about why HP decided to buy Exstream. Exstream is very powerful in enterprise printing. It had already invested in Dialogue Live, a more interactive way for business people to communicate. We want to accelerate that agenda because that is where the sweet spot is. Exstream will push us more into content management. I don't want to be a Documentum or an IBM, but I want to be able to access their environments. I view Exstream as a very strategic acquisition. They have created over the last 10 years a very sound product base and a very influential set of customers in the financial services space. It would take me forever to replicate the market momentum that they have achieved.I don't want to do "consolidating acquisitions." I do want to do growth acquisitions. I am a huge fan of Exstream, which is small relative to HP, but still established. It is an established market leader in an immature space that we can help accelerate. Very large software companies would be much harder to integrate than Exstream, and if I buy anything much larger, it tends to bring some less interesting assets with it. But I will also use HP Labs and my own creative capabilities to do innovation work. It will be a combination of acquisitions and organic growth. I would say that in three years, two-thirds of our growth will be organic growth. How do you see today's competitive landscape in the printing business? There are a lot of ways to measure this, but because of the focus I have, I am really trying to drive where analog content becomes digital. I stay focused on the area that I am responsible for, and the growth that I am most interested in is the growth that comes from Web-based applications. The competitors have all moved into "work flow automation" and they all have made investments in being able to help a company reengineer printing-intensive activities: [for example,] if you have 10 different forms to be created, making that process more automated and efficient. I am not focused on workflow but on what it is that you are trying to create. I am trying to create new products that can exist only because you can publish digitally. You can now mesh together personal and other content more easily than before. I don't think our competitors are as focused on this. Most talk about photos but they don't always get that digital publishing in retail is not about photos but about the other things incorporating photos that customers want to have professionally printed, like personalized materials and maybe signage. I don't think most of our competitors have the forward-leaning agenda that we do.
Do you plan more acquisitions?