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Technology Stocks : Hewlett-Packard (HPQ)

HPQ 26.28

+0.4%

Nov 7 9:30 AM EST

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From: The Duke of URL©	10/24/2006 10:38:00 AM
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HP Voodoo acquisition puts boutique PC firms on spot Analysis Can Hocus Pocus change the world? By Burt Carver: Tuesday 24 October 2006, 09:58 ON SEPTEMBER the 28th... With all this success, why would VoodooPC want to be bought out by HP? According to Phil Mckinney, Vice President and Chief Technology Officer, Personal Systems Group, when Rahul approached HP last year at about the time of the Tour De France it was not about acquisition. Rahul wanted access to HP's patent portfolio to develop new products for the select few that can afford a VoodooPC. Phil Mckinney indicated that the discussions dead ended with little progress and HP was in a state of change internally. Several months later, after the "Carly" era had ended, Rahul again came knocking on HP's door. This time he went directly to Mark Hurd, the new CEO. Mark forwarded his email to Phil Mckinney and Todd Bradley, Executive Vice President of Personal Systems Group and the discussions began. In very short order both sides realised that a technology sharing arrangement would not achieve what both sides desired. ... Enter HP HP has a plethora of patents collecting dust on the shelves waiting for commercialisation. HP was looking for a way to introduce these niche technologies and see what the market is willing to bear as the price of performance. If the technology takes hold on the Voodoo scale, there is a chance it can be filtered down to mainstream consumer models "in a 24 month period" according to Phil Mckinney. In many interviews Rahul had likened the new company to an F1 team with new technologies being introduced and as they matured on high performance machines they would filter down into mainstream models. When asked whether the F1 analogy was an accurate one, Phil Mckinney said: "Absolutely... ...the customer will pay a premium for innovation." theinquirer.net

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