--IBM exec challenges Hewlett-Packard

Internet Business News
03-14-2011
--IBM exec challenges Hewlett-Packard

INTERNET BUSINESS NEWS-(C)1995-2011 M2 COMMUNICATIONS

14 March 2011 -- IBM (NYSE:IBM) is much more advanced than its rival Hewlett-Packard (NYSE:HPQ), or HP, in developing the integrated software and services operations necessary for the success of a modern IT company, the Financial Times quoted the chief of IBM's services division Mike Daniels as saying.
Daniels' remarks came ahead of a crucial strategic meeting at HP on Monday where the group's new chief executive Leo Apotheker is to present his strategic plans.

Daniels said that the close link between IBM's software and services operations has allowed the company to strengthen its profit margins more than HP and was likely to keep its lead with a planned expansion by 2016.

Wall Street seems to support Daniels' views as shares in the two leading IT companies have performed very differently, with IBM gaining 27% while HP was down 20% over the past year.

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