On the enterprise side, the company is looking to bring hardware, software, and services closer by offering integrated packages. HP's enterprise business continues to revolve around services and hardware, but the company wants to become a player in software, as evidenced by the acquisition of analytics company Autonomy for $12 billion last year. The company intends to put its Autonomy software across its entire product portfolio.
Where the savings from the restructuring program will go is anyone's guess, said Charles King, principal analyst at Pund-IT.
The focus on software and emphasis on areas such as cloud computing, security, and information management is a step in the right direction, but those are not easy markets to go after, King said.
"The only caveat is every one of HP's major competitors are actively pursuing that area as well. It behooves HP and Whitman to say ... how they are going to differentiate themselves," King said. HP's major competitors include IBM, Dell, and Oracle.
Integrating software and services will bring incremental value to the company's hardware products, King said.
HP, however, has some issues to address, especially in the printing and imaging business, which has been the company's cash cow for years but where profit is now dwindling, King said. HP also has to clarify its mobile strategy, which remains in limbo after discontinuing devices based on WebOS and its decision to open source the operating system.
There have also been bumps in the company's software efforts with the departure of top Autonomy executives, including founder Mike Lynch, King said. HP is primarily a hardware company and has to prove it has the software chops to effectively integrate Autonomy across products.
HP's net profit for the second fiscal quarter was $1.6 billion, a drop of 31 percent over the same quarter a year ago. HP's revenue was $30.7 billion, falling from $31.6 billion in the same quarter of the previous year. HP has forecast third quarter earnings of $0.94 to $0.97 per share, below previous expectations of $1.02 per share.