Monday, August 16, 2004

HP's Software Woe Has Bigger Industry Implication

HP's Software Woe Has Bigger Industry Implication "When Hewlett-Packard Co. (HPQ.N: Quote, Profile, Research) warned of a profit shortfall last week, it blamed problems it had combining two SAP systems, something that the computer maker believed would be relatively simple when they were putting together a deal to buy Compaq two years ago.
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But the integration is more difficult than expected. HP's earnings fell short, as a long planned switch to new SAP software went awry, causing orders disruption and forcing it to ship some orders via air rather than ground.
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To be sure, HP said the software glitch is more its own execution problem and did not blame SAP directly. A SAP spokesman said HP, which also implements SAP software for other companies through its services arm, is one of its most important customers and the relationship continues to expand."
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