HP Splitting webOS into Two Divisions, Software and Hardware, Internal E-Mails Confirm

Now if only we could confirm whether or not the internal e-mails are real.

Hewlett-Packard (NYSE: HPQ), the company that loves computer manufacturing so much that it has decided to run away from it, is apparently going to split webOS into two divisions – one for software and one for hardware. If true, this information suggests that previous statements made by Todd Bradley, the executive VP of HP's Personal Systems Group, were more than speculation. In fact, one of the internal e-mails comes from Bradley.

“Earlier this month, I told you about our difficult but necessary decision to discontinue the development of our webOS hardware devices,” Bradley wrote in an e-mail that was apparently sent to HP employees. “However, the webOS platform that powers these devices continues to demonstrate its ability to improve how our customers look up information, access entertainment and stay connected on the go. As you know, the company is investigating the best ways to leverage webOS software and grow its applications environment.

“With this in mind, we have decided that we'll be most effective in these efforts by having the teams in webOS software engineering, worldwide developer relations and webOS software product marketing join the Office of Strategy and Technology under Shane Robison. This change is effective immediately.”

Bradley added that the remainder of the webOS team, which currently operates under Stephen DeWitt, will continue to report to the Personal Systems Group.

“I am excited about the opportunity this move creates for all of HP,” Bradley continued. “Reorganizing the webOS software teams under OS&T allows us to fully investigate how we can utilize the webOS software platform. The pan-HP charter of OS&T provides a broad view of how we can optimize our technologies. In fact, it has proven to be a successful incubator of technologies; it is home to a team of senior technology experts devoted exclusively to exploring longer-term strategies for our technologies. Currently, OS&T is incubating the HP Cloud Services business units, Vertica and Business Solutions.

“I would like to thank the teams moving to OS&T for their hard work, innovation and devotion to creating a differentiated customer experience. Their efforts are evident in the intuitive elegance of webOS, and they will not soon be forgotten.

“Meanwhile, during this time of transition and internal analysis, we in PSG must continue to ensure that our customers, partners, colleagues and friends understand that we remain focused on creating amazing products, winning new business and showing the world why we continue to be the largest, most profitable PC company in the world.”

The other e-mail comes from one of the men mentioned in Bradley's memo, Shane Robison. The subject, “Organizational Announcement: webOS Teams to Join OS&T,” seems to concur with Bradley's statements.

“Two weeks ago we announced the transformation of HP for the future,” Robison, who serves as the EVP and Chief Strategy and Technology Officer, wrote in an e-mail. “As part of that change we made a very tough decision to exit the webOS hardware device business. At the same time we recognized the value inherent in the webOS software platform. Not only because of its elegant, intuitive interface, but because of our strategic focus on cloud, connectivity, services and software, and printing.

“I'm pleased that the executive team has decided that the webOS software teams will be best served joining the Office of Strategy and Technology while we investigate how to leverage the webOS platform and its ecosystem. This move also supports the teams' continued efforts with over-the-air updates and the application catalog.”

Robison said that as a result, the “webOS software engineering, developer relations, and software product marketing teams will become a part of OS&T, effective immediately.”

“Ari Jaaksi, senior vice president leading webOS software engineering, and Richard Kerris, vice president leading webOS worldwide developer relations, will report to me,” Robison added. “Lee Ott, the senior director of webOS software product marketing, will report to Ari.

“With our focus on business and technology strategy, OS&T will be able to provide these teams with the resources and support they need as we define the best monetization model. The webOS software employees join HP Cloud Services, Vertica, and Business Solutions as an incubating business group. However, while these teams will be joining OS&T we have decided not to initiate any integration activities. These teams will continue to operate under their current systems and processes until further notice.”

Over the weekend, Trip Chowdhry, the Managing Director of Equity Research at Global Equities Research, sent out an e-mail regarding the HP messages. “These emails have been posted on a Public Forum and Developers we spoke to think these email communications are genuine,” he wrote.

Regarding this news, Chowdhry provided a few notes:

“Previously PALM split itself onto PALM ONE and PALM SOURCE, one focused exclusively on Hardware and other on Software,” he wrote. “PALM SOURCE got acquired by Japanese company ACCESS. However, this splitting of [the] company into two in the past did not work. It is possible that the CEO of HPQ purposely made these harsh announcements regarding the PC and WebOS a few weeks back to wake up the lazy executives at HPQ. The [spirit] of Survival is picking up at HPQ...which may be a unifying force for HPQ, which has traditionally been heavily influenced by internal politics.”

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