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.
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.
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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