December 13, 2005 11:24 a.m. PST, HP Unveils Recovery Strategy, By Marguerite Reardon, Editor, CNET News• Hurd said revenues expected to reach $91 billion in for l fiscal 2006, up from $89.5 billion the previous year. In fiscal 2007, which begins in November 2006, profit margins are expected to reach 8 percent, up from 7.5 percent the previous year. Specifically, HP is focused on three major businesses: enterprise virtualization, high-end printing and mobility. • Vyomesh Joshi, executive vice president of the imaging and printing group, said he It would take a combination of all these small print markets to achieve turnover. growth target of 4 to 6 percent. • Since taking the reins from former CEO Carly Fiorina, Hurd has focused on cutting costs. He cut more than 15,000 jobs in the past six months and restructured the company, eliminating a business division. • Go after smaller companies that will help fill product and technology gaps in markets HP is already focused on. Achieving financial goals depends on how the company executes its strategy. Hurd said that beyond introducing more incentives for its workforce to increase productivity, HP must focus on improving leadership and fostering more accountability within each division of the company. I have a few suggestions to the HP board: 1. Bring back the HP way. Cut down on the nonsense and reintroduce morning croissants to start. Productivity is expected to increase significantly.2. Value your employees. Make them believe in the company again, not just the weekend check. Involve them, train them, make them feel like HP is family again. They will become your best sales force, your best consultants, your best customer contacts.3. Double your R&D. Rethink the expensive laptop, the bloated PC. Create SMB devices (the greatest growth potential ever). Make bold partnership decisions (ISPs, cable operators, etc.). Be a pioneer again.A friend._________________________________________________________________January 23, 2006 4:00 a.m. PST, HP outlines its long-term strategy, by Dawn Kawamoto and Tom Krazit, editors, CNET News• Hurd has previously said that market trends indicate a movement away . mainframes and a move to blade servers, as well as virtualized storage. HP will likely follow these trends. • Mott will help HP implement the back-end processes necessary to operate a best-in-class direct ordering website. • Information-intensive tasks such as collecting and sorting reams of customer data and responding quickly. to changes in component costs are essential to improving the efficiency of a direct sales operation, and Mott's experience implementing such a system at Dell will be invaluable to HP.