So why was HP’s X86 Servers’ turnaround ignored in last quarter’s call?

And HP Storage and HP Enterprise Services’s non-existent turnaround emphasized so much?

Maybe it has something to do with some other aspect of the business …….. Just to re-cap, 7 out of the last 8 quarters have shown positive year-over-year growth. Last quarter was a record quarter for 3Q:

So what’s the problem? Let’s look at market-share:

A decline of 860 bps in global revenue market-share from 38.5% to 29.9% from 4Q10 to 2Q15 (according to IDC) might be the reason. Which is really brought into sharp focus when you look at market-share gap:

Although the gap to Dell has now widened to 800 bps from a low of 560bps (D), this is less than half what it was in 4Q10 (A) – 1,740 bps. And there are no signs of recovery in market-share either: it has been pretty flat since 1Q14.

And to simplify the visual, selecting specific quarters:

That’s a lot of market-share to lose. And there are no indications that ISS is making any traction in re-gaining any of that lost market-share opportunity. So maybe this is why ISS’s progress in its revenue growth is being over-looked.

Let’s see what Tuesday’s results from HP and next week’s market-share update from IDC brings.

 

“Effective Pricing” paper has now been published by the Professional Pricing Society

 

 

“How Effective Pricing Can Enable Business to Achieve Their Strategic Objectives” by Paul Charlton of the Pricing Factory® has been published in Q2 2015 edition of The Journal of Professional Pricing Read more ……

  • The Journal of Professional Pricing is the quarterly publication of the Professional Pricing Society, The World’s Leading Association Dedicated to Pricing Management.
  • The article demonstrates using HP and Dell’s X86 server businesses as an example – how pricing can be used to achieve strategic objectives. Dell’s effective pricing drove increases in the X86 server market-share by delivering nine consecutive quarters of superior revenue growth to HP, their #1 competitor and the market-leader. Was pricing the driving force behind this? HP in its quarterly analysts’ briefings said that it was.
  • Any questions, please contact paul.charlton@thepricingfactory.com

 

error: Content is protected !!