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Glass houses, stones, etc....HP throws rocks at Dell

Thu, 7th Feb 2013
FYI, this story is more than a year old

Hewlett Packard has come out fighting after news of Michael Dell's deal to take his company private.

In a US$24.4 billion deal, Dell has joined forces with investment firm Silver Lake to buy the company, while relying on hand-out loans from Microsoft, to the tune of $2 billion and a rollover of existing debt to other companies.

But it is the response of HP, who have had public struggles in the past, that has made the news.

Winging it's way from Palo Alto, California, apparently very nice this time of year, the company issued the following statement regarding the agreement:

"Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers.

"And with a significant debt load, Dell's ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb.

"We believe Dell's customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity."

Despite the focus being on Dell, HP's official outburst takes the rival firms public sparring to another level, following years of disagreements in the industry.

The particularly harsh opening line, branding Dell's road ahead "very tough" surely masks a hidden agenda for the company, but is kicking a rival while it is down such a good idea?

"I don't think this kind of snarkiness will help HP in the market," Dan Olds, an analyst with the Gabriel Consulting Group, told Computer World.

"But it does show that HP is going to do its best to take advantage of the situation."

Fellow PC makers Lenovo and Acer did not bother to comment on the deal, but HP's response shows the vultures are circling and plans to shift customer loyalty are already in place.

Can Dell keep hold of their customer base? Does it actually have a very tough road ahead? Tell us your thoughts below

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