Following recent rumors, HP has now confirmed that the company will be splitting into two companies, HP Inc. and Hewlett-Packard Enterprise.

One half of the company, the HP Inc., will be focused on consumer market, including personal systems and printing company, while the second part, Hewlett-Packard Enterprise will continue to build on HP's leading position in servers, storage, networking, converged systems, services and software as well as its OpenStack Helion cloud platform.

Meg Whitman will be taking position of President and Chief Executive Officer of Hewlett-Packard Enterprise while HP Inc. will be taken over by Dion Weisler as President and Chief Executive Officer.

According to Meg Whitman, "The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders. In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders.”

While Hewlett-Packard Enterprise will still focus on quite strong enterprise market, HP Inc. promises some new things like focus on 3D printing as well as "new computing experiences".

According to the details, the separation transaction will be tax/free to HP shareholders and will basically turn HP into two traded companies, each with a rather hefty annual revenue. According to various analysts, this also opens up room for HP to go for merge with another players in the similar market while keeping the two businesses separate.

In any case, consumer and enterprise markets now have two differently named players, the Hewlett-Packard Enterprise and the HP Inc.




Source: HP.com.