One afternoon this
month a part of HPs history ended. Out on the New York Stock
Exchange, the symbol which HP has used for 40 years is being retired.
HWP became another relic of a bygone era at HP. In this months
first full week the company began to offer its shares under the
symbol HPQ, reflecting its success at merging with Compaq.
Whether the merger brings success to both you and your
computer vendor remains to be proven by HPs top management. The
merger mission will be executed an apt verb, considering what
surfaces next in the drama by hundreds of employees in charge
of change. While the merger has been a topic of ripe debate among the
3000 community, the impact of the collision between HP and Compaq
product lines wont be felt inside the 3000 marketplace a
place where HP has already cancelled its product.
In the same way that cancellation makes HPs fate less
relevant to many of you, execution of this merger will end things
before anything substantial begins. Product lines and people will be
the first things to exit HP. As this bloodletting gets underway,
customers and business partners using HP 3000s might do well to
recall the proverb atop this column. No matter how noble its
motivation, any wish can lose its luster in the hard light of
execution: mergers, migrations, or a boys dream of playing
center field in his hometown.
That boy would be Ken Griffey Jr., known to many baseball
fans simply as Junior Griffey. At age 29 he was voted one of the 50
best players ever to play the game of baseball. His boyhood dream,
however, has become something to be careful of. Maybe its like
that HP call to migration, trumpeted toward customers so legendary
for their product loyalty. This summers plays may tell the tale
for both Junior and HPs wishes in your marketplace.
For Junior, his wish was to play for his dads team.
Were not talking about Junior playing for a baseball club that
Ken Griffey Sr. rooted for from his armchair. Were talking
about the Cincinnati Reds, a club where Griffey Sr. starred in the
1970s. In center field. While his boy Junior played in the
teams dugout, watching his dad.
Junior was blessed with even better skills than his father,
talent the boy polished with a shining smile in Seattle for many
years. Finally, when his contract was up, he got to pursue his wish.
He signed with Cincinnati, to the delight of his dad, then a coach
for the Reds, and the adoration of fans in his old hometown. The
perennial All-Star became the heart of hope in a small market of
baseball. Sportswriters predicted, with the certainty of stock
analysts, that the Reds would rise on the tide of Juniors wish
come true.
Three seasons later, Junior might wonder if he should have
wished more carefully. He had some bad luck. He spent almost a full
seasons worth of games on the injured list, and the rest of the
teams fortunes declined even when he played. The smiling young
man of Seattle became sullen, pressured to provide the Reds
leadership to match his salary and reputation.
Junior left Seattle and came home to Cincinnati for a reason
as noble as any: to be with his children during their school year. He
may have remembered seeing less of his dad growing up, while the Reds
were away from home. Moving to a little market to be with your kids
seems like a no-brainer. Maybe its like adopting commodity
practices to maximize computing profits, as HP is now set to do.
Profit is a noble corporate motive, of course.
But the family approach hasnt been enough for the Reds
fans buying tickets. Junior was back, but where was the championship?
Three years after Juniors wish came true in Cincinnati, three
other outfielders started this season while the all-star went onto
the injured list again. The Reds now lead their league in wins. His
old team flourished without him, too. And in the final insult to his
wish, Junior saw a hometown TV station poll viewers on who should be
benched the three starters, or him. Three fans out of every
four who voted would put Junior on the bench.
Could anybody have seen this coming? These days, the CEOs say
they have limited visibility, and that certainly describes the
outlook in todays HP 3000 community. What the future will bring
is something few can guarantee. Nobody could foresee Junior becoming
irrelevant to a Reds fan in his hometown. Playing there was his
fondest wish, much like HP wished for a merger, and the HP 3000
division leaders at CSY wish their customers would migrate off the
computer.
Visibility for HP and CSY is considerably better than
Juniors, however. It doesnt take much of a crystal ball
to see that 15,000 firings and killing off product lines will offer
HP competitors some easy pickings this year. HP promises they
wont lose more than 5 percent in revenue post-merger. If they
stay healthy and are very lucky, that might turn out to be true.
We can see places in the 3000 community where some of that
revenue loss will occur. CSY is wishing for migration, but so are its
competitors. The migration wish is being interpreted as a replacement
wish in most companies who cant stick with the HP 3000.
Replacement puts HP at greatest risk of losing a customer,
but what can you expect a 3000 manager to do? You cant take the
majority of a customer base thats happy with simple, bundled
computing and make it an avid fan of complex, open systems without
expecting some computing habits to hang on.
HP 3000 sites like simple IT, and managers in their 40s and
50s wont be anxious to roll up their sleeves and become
neophytes once more. People like to be all-stars, especially if
theyve got a reputation in their companies of knowing the
answer to the users questions, or keeping applications working
all the time.
After some search, we are starting to find HP 3000 customers
who wished for this migration march. Our interviews, however, often
turn up a different kind of customer whos making this wish.
These IT professionals love a challenge, and dont sweat at
night worrying about problems or downtime. Many came from a Unix
background, and so picked up the 3000 along with new responsibility
for routers or their phone system. The computers differences
stood out to them, distinguishing marks looking more like tattoos
than beauty marks.
Some of these wishful customers will migrate, and there will
probably be enough of them to keep plenty of partners busy over the
next five years. But many more will be replacing their HP 3000s
wholesale, and HP doesnt have more than a even chance of
winning that business. If IBM can put together a compelling offer,
even those chances might be optimistic. Big Blue never gave up on the
idea of bundled, proprietary IT solutions while it embraced open
systems. Customers replacing a proprietary HP solution they remember
as trouble-free could well look for the same kind of solution
leaving HP sitting on the bench, since it has no comparable product
offering after next October.
Its this replacement regimen that might yield more of
an HP revenue loss from your corner of the IT world than merger
fanatics wish for. Replacement throws everything out except business
logic, including existing vendors. Like Junior Griffeys dream,
driving HP 3000 customers toward more open systems is a wish HP
should be careful of since the customers new choices
could eliminate HPs support revenues, a far steadier stream of
cash than the sales of new 3000s.
Why would HP want to eliminate any source of support cash, in
an era when sales growth has been so hard to come by? You might as
well ask why an All-Star wanted to take a pay cut and play for a team
short of championship prospects. The times might be a-changing, but
taking a look at who stands to benefit from the change seems prudent,
now that HP wants everyone to plan for a new future. Junior Griffey
wanted to be closer to his family, something he wished for at the
cost of the hopes of his new fans. HP will get to bench a lot of
products and people with their merger complete.
Getting fewer choices from the merged HP, products which are
less unique, is somebodys wish come true. Be careful before you
decide that someone is you, the customer. Be sure you wish for
challenges without fear, and get help for what you dont know
or take a hard look at riding the bench.