HP outlines next R&D strategy
Simplicity, standards are at center of efforts
By Rex Crum, CBS.MarketWatch.com 6:49 PM ET Oct. 22, 2002
PALO ALTO, Calif. (CBS.MW) - Hewlett-Packard officials say its research and development strategy for the coming year will focus on ways to decrease both the cost and complexity of information technology systems.
The computing giant, which says it already invests $4 billion a year in R&D, laid out an outline of its intentions at the company's annual analyst day at its headquarters on Tuesday. H-P's (HPQ: news, chart, profile) plans center around what it calls "cross-company" R&D investments in four areas: IT management and utility computing software, mobile infrastructure and devices, security technologies, and ways to create, distribute and manage new kinds of rich media -- including images, audio and video -- across networks.
CEO Carly Fiorina said H-P also realizes the promotion and adoption of more standards-based technologies -- a mantra also recently trumpeted by rival Dell Computer (DELL: news, chart, profile) -- is something the company needs to focus on in order to shape the IT landscape in the coming years.
"The days of stand-alone boxes and vendor-focused lock-in strategies are over," Fiorina said. "By leading the industry to standards-based and modular systems, we will redefine the IT value proposition for business and offer the best return on information technology."
Fiorina added that H-P intends on creating a larger digital presence in lives of average consumers. While not saying if the company would go so far as Microsoft (MSFT: news, chart, profile) and do something as radical as create a home-gaming system or develop digital music players akin to Apple Computer's (AAPL: news, chart, profile) IPod, Fiorina said H-P would be seen in the digital hub of the future.
"For consumers, we're focused on improving people's overall experience with technology," Fiorina said. "Whether it's listening to music on a digital entertainment system, downloading and printing images or staying connected while you run errands, we will focus on making that experience simple and rewarding."
H-P made one new development public. The company unveiled an integrated machine-to-machine connectivity device that links Nokia (NOK: news, chart, profile) wireless technology with HP hardware and software for use in accessing and managing remote networks.
In after-hours trading, H-P shares were up 13 cents at $13.95 after losing 10 cents in the regular session. |
