Download the Tom's Hardware App from the App Store
The reference for current tech news
Yes No
Ads

HP's Lack of Invention is Why webOS Failed

by - source: Tom's Guide US

I cannot remember a time when I would have considered HP an emotionally charged company. As far as excitement goes, HP is about as arousing as a toothpick. Today, however, is different.

I believe it would be fair to say that investors do not approve, or, at the very least, do not especially like HP's new plan how the company plans to sail into the future. The company said that it be trying to sell its personal computer business, which is a major revenue source for HP. This was questioned not just outside of HP in the investor community, but especially by the services guys inside HP who never missed a chance to trash HP's interest in building consumer PCs.

Of course, there was also news that HP canceled its webOS hardware devices and is now leaving the future of the software in question, which essentially will cost HP at least about $2.5 billion to get rid of one of the greatest opportunities it had in a long time and is now left with the only choice to kill whatever is left of Palm, the company that pioneered mobile devices as we know them today. HP is served a broadside from the financial community today, with the most critical piece being Jeff Reeves' article that compares HP to the "worst of corporate America."

I would not be so dramatic, but he has a point and there is much in this claim why webOS failed inside HP. WebOS failed for the very same reasons why VoodooPC failed as part of HP as well, for example.

HP today: Invent?

A few months ago, we heard HP CEO Leo Apotheker saying that he would hope that HP could be as cool as Apple is today. However, realistically, what is HP today and what do we think it will be without webOS and the PC business? A printer manufacturer? An enterprise services company that uses fancy names for trivial technologies described in Powerpoint presentations that put the company's clients to sleep in a matter of minutes? Even in its enterprise business, HP seems to have lost its fire and we know that the company has been searching for direction for some time. A direction that has changed course several times since CEOs Carly Fiorina, Mark Hurd and now Leo Apotheker.

In servers, HP always had issues going after IBM and it was the profitability of IBM services that drove HP into this market as well. Yet HP never achieved the high profile and reputation of IBM in this market and could only grow its reach via substantial acquisitions, such as Autonomy now. It is not difficult to see that HP will be moving much more into the enterprise market and services than ever before. However, even in that space, HP may have problems at the very core as the company is turning into a giant that is the opposite of being nimble.

Its perennial rival IBM may be larger than HP, but it does much better job at being perceived as an innovation driver across all of its business segments -- for example, with chips that are built using neuron-like structures. HP has its famous labs as well, but, honestly, when was the last time you heard about a significant innovation that has come out of HP? You can take this innovation game even further and look at the patent space. HP filed 2 patent applications with the U.S. PTO this week, IBM filed 44 and Samsung filed 98. On an average week, Samsung is filing for 130 new patents every week, IBM for about 120 and HP for about 15. The activity coming out of HP does not reflect the size of the company. If the number of filed patents that protect any innovation in fact are a sign for the innovative power of a company, then I would claim that "invent" is not be the best word to describe HP anymore.

A Colossal Mistake: webOS

The acquisition of Palm and webOS was an interesting move. For pocket change ($1.2 billion), HP bought itself an ailing, but very capable platform that could have changed the face of HP. WebOS was the foundation of a platform that screamed "innovation" much more than anything else HP has in its product portfolio today. There was initial enthusiasm for webOS and an opportunity that connected nicely to HP's position as leading PC manufacturer -- its aspirations as a smartphone company as well as the emerging tablet market that so heavily depends on a functioning platform. HP had the resources to build webOS into something great. What HP did not have was time and passion.

HP gave the Touchpad 49 days to succeed or fail. 49 painful days that jailed a fantastic OS in barely adequate and over-emphasized hardware. 49 days that proved that consumers will not just buy a $500 tablet because we all suddenly think that they are the best thing since sliced bread. In Leo Apotheker's more pragmatic words: "Our WebOS devices have not gained enough traction in the marketplace with consumers and we see too long a ramp up in the market share. Due to market dynamics, significant competition and a rapidly changing environment and this week's news only reiterates the speed and nature of this change, continuing to execute our current device approach in this market space is no longer in the best interest of HP and HP's shareholders. Therefore, we have made the difficult but necessary decision to shut down the webOS hardware provisions within Q4 2011." What Apotheker failed to mention is that it was not "market dynamics, significant competition and a rapidly changing environment" that killed webOS hardware -- it was HP.

When HP acquired webOS with Palm, it was clear that this was a very fragile foundation for a new and highly marketed environment that required as much brainpower as risky and substantial monetary investments. The Touchpad was the first attempt. Like all Android tablets on the market today, the Touchpad lacked the reasoning, vision and passion that makes the iPad so successful. HP did not court webOS developers. Instead of a truly unique tablet, it produced an iPad copycat and sold it for the same price as the original. What reason would consumers have to buy the Touchpad over the iPad, if there are fewer apps, if there is a questionable future, if there is no platform integration, if there are no compelling phones, and if the iPad carries the innovation mindshare and all bragging rights? Releasing the Touchpad in its current form was driven by negligent market and consumer research at the very least.

HP had tremendous opportunities with webOS. It could have given the software away for free to invite developers. It could have create a huge platform spanning from PCs, appliances, smartphones to tablets. What is left is webOS with nowhere to go. There is talk that HP may try to license it to HTC or Samsung. I am not quite sure what HTC would do with webOS. HP calls this strategy now "optimizing the value of WebOS" after it virtually killed it with sub-par hardware.

Failure by design

HP has always had trouble integrating young companies and new ideas into an aging corporate structure that may not be so competitive anymore. Rahul Sood from VoodooPC left HP's PC business earlier this year and joined Microsoft. VoodooPC, at least temporarily, gave HP the perception of being an enormously innovative company that took a playful and risky approach to set trends and not follow them.

WebOS is a deeply emotional product that failed inside HP most likely because of the same reasons companies like VoodooPC failed. Unless HP recognizes the opportunities it is given, unless it returns to the roots of innovation and becomes much more nimble and passionate than it is today, HP is simply stuck in a time that is slowly fading away. Apple is the poster child of what passion for its legacy and products can do for a company. HP needs to embrace the same spirit that is driving companies such as Apple and Google, whether it deals with business or home users.

WebOS represented the passion that HP so desperately needs. The strong reaction of investors that sent HP's stock down 20% to a six-year low may only be one indicator of HP's shaky future. Hp cannot afford to miss many opportunities such as webOS.

Share:
59
Comments
X
Submit

Comments
Add your comment
Clonazepam 08/20/2011 4:18 AM
Hide
-6+

A good read. First thing that comes to mind when I think HP is cheap molded plastic.

fyasko 08/20/2011 4:37 AM
Hide
-16+

webOS failed because HP has retards at the helm.

11796pcs 08/20/2011 4:53 AM
Hide
-20+

HP let their tablet fail just like Microsoft does so often with their products. They didn't support it. They also weren't able to give it any resources or time. I agree with clonazepam- I too equate HP with cheap molded plastic. And it's one thing if your products are solid but not very flashy or innovative (think Lenovo) but it's completely another if your products are trash that have zero reliability and are not consumer friendly. Oh and by the way, installing 20 different trial programs and useless applications is NOT consumer friendly, especially when you do stupid stuff like sell laptops running Vista with 1 GB of RAM to unsuspecting consumers along with all the bloatware.

Anonymous 08/20/2011 5:11 AM
Show
Anonymous 08/20/2011 5:30 AM
Hide
-4+

Great article, balanced and well said. You forget one other thing, not many palm people stuck around following the buyout. And those who did were gone within months. My faith in HP died when Rahul Sood left. Up till that point it was his excitement that really had me interested in the future of HP branded webOS products, but once he was gone, I looked at what was left of "Palm" and it wasn't much.

jecastej 08/20/2011 5:44 AM
Hide
-2+

I know there would be the "easy opportunity" for some readers to trash the entire analysis and passion in this article for the suspicious reason that Apple is many times mentioned as the company to have in mind. Again that would be very short sighted. But personally, I can't deny I expected more from HP. I believed the year HP took to develop their tablet and the Palm acquisition would be enough to produce maybe the best iPad challenger or even something better, different. And this situation with HP comes to reveal more than three things but I want to point just to 3. Apple has done very well their job with the iPad, even if you can't take any advantage of it or you hate it because its Apple. It is nothing trivial to produce a massive popular computer gadget. Second, HP's own big problems to produce one. My third conclusion is another big denial for many: The desktop PC tower form factor as we came to know it is dying as the massive default computer world wide. HP also announced a spin off of their PC business. What could happen tomorrow with the PC that could regain the concept to a better situation I don't know. Maybe the gamers in general could buy the PC more time in market interest. The hardcore PC users will always be there. I know I will use the tower PC while I find it the best way and economically faceable for me to produce my job.

maddad 08/20/2011 5:48 AM
Hide
-1+

Well, I ordered the 16gb version @ $99. Hopefully someone will come out with a way to load Android on it. I'll just use it to surf the web and check email when I am out and about.

legacy7955 08/20/2011 6:08 AM
Hide
-7+

I definitely disagree about HP small business and consumer OEM PCs. While they aren't flashy or gaming machines they are actually pretty good quality and from my experience have very good reliability. Their tech support is also quite good as is their warranty if you need it.

I think HP is done as a major force in the computing business if they completely abandon the PSG entirely. It screams FAILURE at the most elemental level.

I would agree that HP needs to streamline their PC lines and bring the overall hardware quality back to the levels they enjoyed around the late 90s and early 00s.

They should kill the entry level models and concentrate on mid and higher priced units.

I've always been a big fan of their products . More worrying is the fact that it seems like US companies are just giving up the PC business without even a fight at all.

Sorry but this is DEPRESSING TO ME!!!!!!!

HP PLEASE ....DON'T GIVE UP THE PC BUSINESS!

Anonymous 08/20/2011 6:11 AM
Hide
-0+

Funny commentary, so true; then I associate HP brand to good laptops and printer, and enterprise stuff, IBM did not throw out core business with Lenovo but HP is doing it.

My insistence on Windows Mobile or even older Palm OS is purely for one app: TCPMP; threw that out on webOS I pretend Palm does not exist (same goes Windows Phone 7) That surely says what a "platform" is, wreck that and you effectively screw the entire package.

ravewulf 08/20/2011 6:34 AM
Hide
-4+

I wonder if HP is going the same way as 3DFX

DjEaZy 08/20/2011 7:08 AM
Hide
--1+

... two big companies bid for palm because of WebOS: HP and Apple... but they sold to HP because of a matter of principle... the designer of WebOS was a former apple employee... if apple would win the bid, i think the iOS and WebOS together would be a awesome thing... because of apple innovative spirit and skill to proper copy and enhance functions...

Zingam 08/20/2011 7:08 AM
Hide
-7+

What do you expect? They put some software guy as a CEO, who has no idea what to do with hardware and he sells it. Let's all make software and sell it each other!

Anonymous 08/20/2011 7:16 AM
Hide
-1+

I wonder how this assessment will change given that HP is giving away the pad for $149 for the 32GB model, flooding the market with it and opening the door for a usable platform?

LORD_ORION 08/20/2011 7:18 AM
Hide
-1+

That is all fine and dandy, but corporate welfare (the tax payers will foot the bill for your failure through a tax deduction) is ultimately why this product failed.

They gave up at the 1st sign of adversity and took the tax deal to landfill the product rather than be confident that they could eventually succeed.

Nobody ever succeeded by giving up immediately, or so I've been taught. Why does this rule not apply to HP? Let alone why are they rewarded with a golden pillow to land on for falling on their ass?

Ultimately the decision makers will not be punished, only the people who did the actual work.

Anonymous 08/20/2011 7:23 AM
Hide
-4+

Despite what the current HP CEO thinks, HP actually does have a good presence in the consumer computer market. HP is quite different from IBM which presence trails behind many competitors. Sure the profit margin is not what it is used to be, and PC business is now a mature and stagnant business like car industry is. Nonetheless, a source of profit is still profit. Is HP really bleeding money in this segment? Why give up the leadership position when there is no real reason to? Heck even my company purchase new PC exclusively from HP alone. There is a lot of goodwill there.

I feel HP once again manages to employ a leader who is too keen on showing that he can make a difference and is willing to risk the whole company future to achieve his own goal. Maybe they should have just employ someone who is more on defense and streamline the business instead of someone who tries to achieve more growth even when there is no sound business plan.

coletteduke 08/20/2011 8:02 AM
Hide
-0+

great now release the webos installer for ipad please. http://bit.ly/nSJwW1

mrmike_49 08/20/2011 8:02 AM
Hide
-7+

fyasko :
webOS failed because HP has retards at the helm.



Yeah, especially their new CEO - he's a software guy, so naturally he's gonna turn HP into a software company - pathetic! It really is the worst of American business (mis)management: management by executive fiat

jj463rd 08/20/2011 9:50 AM
Hide
-6+

Wow this is mind blowing yet sad news.
I remember back in the early to mid 1970's
HP had an awesome line of advanced programmable calculators (almost microcomputers).Easy to write complex programs on.A very compelling well built practical line of products they had back then.I myself owned a HP-67 and a friend of mine had the earlier HP-65.Far more practical,versatile and useful than the clunky big Altair 8800 or the IMSAI 8080 monstrosities.Oh those early big microcomputers were cool though but just impractical.Even Steve Wozniak (I think) of Apple Computer fame worked in HP's programmable calculator division before creating his own Apple I microcomputer.
They (HP) had developed such a reputation that even NASA astronauts and engineers used their programmable calculators during the late 1960's and the decade of the 1970's.

So they are even considering abandoning their PC line too?
Ouch and even mind boggling.I was even considering getting a HP notebook with a AMD A4 Fusion CPU with a very good battery life,decent CPU power,small size that could even be used for light or lower res gaming for around $380.
I'll have to reconsider my decision if they decide to sell off their PC business.What a sad ending.



doggrell3000 08/20/2011 10:25 AM
Hide
--3+

apple , microsoft , google , hp , dell , ibm , and every tablet phone laptop desktop and software big household name which are all worth multi billions of dollars and have fleeced consumers out of every dime they can spare - all have two things in common : they were virtually unknown twenty five years ago and they will be a faint fading memory twenty five years in the future . mark my words .

Anonymous 08/20/2011 11:03 AM
Hide
-7+

doggrell3000, how can anyone take your word seriously when you are completely incapable of either remembering how long most of the companies you named have been around, or you're completely incapable of such simple arithmetic, or... well, there's nothing redeeming from your post for claims, as the only company you mentioned by name that's not been around over 25 years is Google.

doggrll3000 will be dead in less than 10 years from a drug overdose - mark my words :D

kartu 08/20/2011 11:27 AM
Hide
-10+

You can invent reasons like "lack of innovation" but it's not why it has failed.

A couple of weeks ago I didn't even check what it does, before ruling it out, when considering what tablet to buy. Yet another web platform, pushed by a single manufacturer who's just trying to gain market share, didn't sound promising at all, I saw this obvious end coming, albeit not so soon.

And all the blabla about cool platforms, dual/quad core CPUs, gigapuxel cameras with 2mm lens, wake up people. It's all crap. Screen quality, smooth UI (and no, you don't need dual/quadcore for it, just optimized code, not bloated bytecode running in a JVM with no JIT) and battery life is all that one has to care about about these gadgets. Oh, and the fact that you can install applications on it, without needing some greedy bastard's approval.

And one more thing, pardon if it hurts your feelings, but mobile OS functionality at the moment is VERY VERY VERY BASIC. Even this basic thing is hard for google to keep it up, but only because there are gazillion of hardware configurations to support. There is NOT A SINGLE mobile OS out in the wilds, having more functions than what a group of dozen developers could achieve within 12 month using Linux as a base (for a particular gadget).

doggrell3000 08/20/2011 11:42 AM
Hide
-0+

dear hairballs
i could be wrong about my predictions . i have been wrong before . i did not state how long these big technology companies have been in business - only that they were unknown to the mass consumer twenty five years ago . my point is that we should not underestimate the accelerating pace and sweeping change that will render our present electronic marvels completely obsolete within shorter and shorter cycles of time . as for my possible demise from a drug overdose - if it didn't happen in the seventies and eighties ( given my truly irrational behavior in those days ) then i doubt it will prove to be my final means of departing my virtual existence .

randomizer 08/20/2011 1:27 PM
Hide
-3+

Quote :On an average week, Samsung is filing for 130 new patents every week, IBM for about 120 and HP for about 15.


No wonder the patent system is a mess. 265 patents a week and that's just from 3 companies.

house70 08/20/2011 2:29 PM
Hide
-2+

So, they want to become mainly a software company (http://www.freedomcurrent.com/trendingnews/hp-shakes-things-up-and-purchases-autonomy.html).
The same company that wrote the most bloated printer drivers out there?
yeah, sign me up for that.....

Darkerson 08/20/2011 2:32 PM
Hide
-3+

If this is an indication of how they plan on backing future projects, by all means, let them leave the PC business. Plenty other companies will take up the slack.

aries1470 08/20/2011 4:09 PM
Hide
-1+

doggrell3000 :
dear hairballs i could be wrong about my predictions . i have been wrong before . i did not state how long these big technology companies have been in business - only that they were unknown to the mass consumer twenty five years ago . my point is that we should not underestimate the accelerating pace and sweeping change that will render our present electronic marvels completely obsolete within shorter and shorter cycles of time . as for my possible demise from a drug overdose - if it didn't happen in the seventies and eighties ( given my truly irrational behavior in those days ) then i doubt it will prove to be my final means of departing my virtual existence .


dear doggrell3000.

It seems you may not h\even have been born back then. I was! I can tell you that in 1986, Microsft was EXTREMELY WELL KNOWN, with their MS-Dos, and all the other companies trying to copy them! like Dr-Dos etc. They were also making their DOS system available for other home computer systems besides PC's.
IBM was a MUST have, if you could afford it! It was a business computer and was starting to get in the homes too!
The 8086 & '286 clones were starting and the '386 was making its debout.

Apple was big too!!! You would want to be seen using an Apple II__ (add suffice, ie "+" / GS etc) or a MACINTOSH. Can you say that word? They were all over schools too.
HP was reknown for their printers even back then and also computers and calculators!
For Dell I am not sure. As for Google, we all know they started on a patent for a search algorithm in the late 1990's ;-)

So you my dear sir must have grown up in some other // universive, but how you crossed to ours is a mystery to me ;-)

Now my opion would be for Google to BUY that part that was PALM and get the patents too, but I think that was all that HP wanted.

I was actually hoping for a Japanese major to licence WebOS and put it out to the masses, I had even made early hardware specs for a tablet for it... Put an OMAP5, with 8Gb of LPDDR2 SoC, with a PentaBand HSPA+ Chip, Mini USB (micro USB connectors are flimy same as the cables) have bluetooth, WiFi a/b/g/n300 with special aerials, optimising 3x3:3 plus serial/IrDA (4Mbit) port (for industrial applications for those that are in the know), battery banks, think of the batteries in an average smart mobile phone that are about 1500 mAh, well x8 bays! would be sold with 2 batteries, and then just add more as everyones needs vary. Secondary mini-usb port, to support charging OTHER devices, like phone etc.
Then it was to have a 1.8" 320Gbyte HDD, 1 internal XDHC socket, 1 External XDHC and a USB 3 port, a SHARP capacitive touch screen, a Fastrax UC430 GPS, accelerometer, magentometer, 2 Gb main user FRAM (to stay with the same supplier of SoC(T.I)) or MRAM (not NAND/Flash memory), interactive Pico projector, 3D hand gesture, dual front and dual back camera's with the rear ones having optical zoom, with a minimum of 12MPx each for stereoscopic, electrostatic speakers, high quality T.I. audio solution (not mentioning specific) etc.

If anyone else is interested, I can go on in more details about specialised buttons (locations) and what not that would have knocked off nearly all current and near future Tablets!

I was trying to get contact info for Sharp, since that was the manufacturer of my choice, but did not get the direct contact info for the department I was interested.

In case any of you are unaware, they are als othe first to produce a clamshell Android phone, and also their screens are of exceptional quality.

Statement: All the above specs are my property for a concieved product, but not materialised.

Anonymous 08/20/2011 4:20 PM
Hide
-0+

Interesting news. Apple is a device maker with appealing, "sexy" user interfaces and well integrated software. Do they make anything that is "business quality"? - not really. Could they - sure, but that isn't their bread and butter. HP, like so many other business-oriented companies, haven't shown their creativity to appeal to the same customers that Apple does. Heck, I can buy three vanilla PCs for the the price of one Apple PC and you tell me which serves the customer best? The business customer and low to middle class consumer choses on price - and by the way, the HP PC lasts just as long or longer than the fragile but pretty Apple toy. It turns out that Apple wins now because of (1) Better user experience through innovation (2) Huge margins. Apparently HP has given up on their ability to compete on creativity in the consumer space - might be a good move for them if they can actually innovate in the business and services market - we'll see.

Anonymous 08/20/2011 4:54 PM
Hide
-0+

Yep, this about says it all. What I don't agree with is that WebOS was a contender when HP bought it. When Palm released it with the Pre, it was awesome, and a two horse race with iOS. But Palm dropped the ball, and it stagnated almost immediately. And as I sat and watched Android become the leader that webOS was supposed to be when it was released, over the following year, I was surprised that HP bought them. A huge influx of cash - maybe, but then nothing. No significantly different new phones (Pre plus - seriously? thats version 1.001) no new products (remember the speculation that they might not even do a tablet?). Palm might as well have sold to a financial investors firm like so many others, where the company is dismantled as they skim all the profits for stockholders, and the product dies because reinvestment is dead.

annymmo 08/20/2011 5:50 PM
Hide
-0+

This is ridiculous.

I agree with the other commenter s about the new CEO's vision, the lack of it actually.

The thing is, nobody cares about webOS. What did it provided in terms of running applications? Probably nothing out the ordinary. Was it stable and how was it licensed? Without hype a platform like this cannot succeed.

If you really want a platform. Try to improve something in Linux. That is base linux.

Seriously just bring out two nice (low and high end) touch PC's with amd's new Fusion apu's and a decent tablet with one of ARM's new processors.
Put Android on the arm processors.
If it's beefy enough to run windows, just run windows 7 on it.

Go into the smartphone market. Seriously, this is a big opportunity if done right.

zoemayne 08/20/2011 5:55 PM
Hide
-1+

HP is not a software company. From this failure it just proves to me that they didn't know what they were going to do with the OS. They just saw the potential $ from the booming mobile market and of course its a no brainer to buy, but its not a no brainer to make it a success. It takes talent and HP simply does not have the talented S/W devs like google has.

intelliclint 08/20/2011 6:14 PM
Hide
-2+

I have written apps for both webOS and iOS and I can tell you HP supported webOS on the developer level better than apple does. The SDK, VM, and application submission, where all free. They updated the webOS with, exhibition mode and the touchstone charger, something iOS doesn't even come close to supporting. Imaging built-in support for the thing when it is sitting around, not just another clock screensaver. They provided a java based IDE for free, that works in most browsers. They updated the frameworks, Mojo then Enyo, and rewrote their own apps to use them. The base of the OS is Linux, and the apps that work on linux work there right down to a shell. Coding for webOS was a lot easier then iOS.

If webOS failed from HP it wasn't developer support, it was promotion and patience.

Leo is a... if it isn't profitable cut it and move on... kind of guy, Mark Hurd was a... if you want a tech buy it and cut what you have... kind of guy. Neither see the big picture, that promotion, being different and proud of it is what makes a company, not the we have it too. Innovation is what we buy from another company and never take a risk.


Ads

Best offers

Newsletters


OK
Ads