- HP is splitting into two new companies - HP Enterprise and HP Inc. through a massive undertaking that involves dividing 75,000 APIs, 2800 apps, 50,000 servers across 6 data centers, and 750 legal entities in 166 countries. - The split will cost $2.75 billion and result in two $55 billion companies - HP Enterprise will focus on servers, storage, networking and enterprise services while HP Inc. will sell PCs and printers. - The split leaves most of HP's $22 billion debt with HP Inc. and restricts the two companies from competing against each other or poaching employees for several years.

1. All you should know about
the HP Split
Created: August 2015
Gathered by: Prayukth K V
Graphics: Prabahar Chitraikani

2. • Dividing up or retooling 2800 Apps and 75000 APIs
• 50,000 servers in six data centers
• 3,00,000 employees
• Splitting or dividing 750 legal entities in 166 nations
• HP’s already said it expects the tab for the split to run
to some $2.75 billion--$1.8 billion in restructuring costs
and $950 million in taxes
• Another $400 million to $450 million will be spent in
“dis-synergy” costs resulting from duplicating corporate
jobs
Page 2
The Scale

6. HP Enterprise will be home to the company’s data center
products, including servers, storage, network gear and
software, as well as its enterprises services division. HP
Inc. will sell its PCs and printers.
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7. The result will be 2 $55bn Fortune 50 companies
Page 4

8. Hewlett-Packard Enterprise and HP Inc. will not compete against each
other for three years
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9. The two companies also will not go after each other's
employees. Neither will be able to pitch jobs to any of the
other's employees for 12 months, or to hire employees
from the other company for six months. However, there
are exceptions. For example, if one company terminates
an employee, the other company can hire that employee.
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10. HP buildings that house employees of both companies must have two
separate entrances for each of the independent entities.
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11. The enterprise unit is only walking away with $.5B of the debt, leaving
the massive majority of existing and new debt (about $22B) to the
PC/Printing company
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12. The PC group, is doing well, with 6.6 percent growth year
over year and $1.2B in earnings on $34B in revenue, or
nearly 4 percent profit. Unfortunately, this is offset by the
Printing group, which is losing revenue at the rate of
nearly 4 percent per year but making a whopping $4B+ in
earnings on $23B in revenue, or around 16 percent profit.
In terms of cash generation, both in total and as a
percentage of revenue, the Printing unit is a like a money
machine. Now in debt, HP shows a massive $20B, down
$2B from 2013, and added to this will be much of the $3B
separation cost, and the Enterprise half of the firm is just
taking $.5B. That leaves the PC/Printer company with a
whopping $22B (approximately) to pay off.
Page 9

13. The new HP Enterprise company won't be able to sell
itself for two years. This restriction is part of the tax-free
status that the separation will get.
Page 9

14. Prayukth is a marketing guy who comes up with
cool ideas for helping startups takeoff at warp
speed. Making startups understand the potential of
IoT is a cause he identifies with. He is a social
media power influencer on twitter, linkedin,
slideshare and google plus.
Prabahar creates visuals that carry messages and
engage audiences before a click. His work has so
far powered over 300 global campaigns and
brands.
He can be found here

15. Thank You !!!
Gathered by: Prayukth K V
Graphics: Prabahar Chitraikani