Former Microsoft Windows exec to lead HP software business |
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Former Microsoft Windows exec to lead HP software business
Bill Veghte
Hewlett-Packard's hiring of former Windows executive Bill Veghte, announced today, is another example of the computer maker's potential to compete with its longtime partner, Microsoft, in the software business. The 20-year Microsoft veteran will lead HP's software and services unit in his new role as an HP executive vice president.
The news follows HP's agreement last week to acquire Palm, effectively embracing an alternative to Microsoft's Windows Phone.
Veghte, the former senior vice president of sales and marketing for the Windows business, had been expected to take another executive role inside Microsoft after a July management reshuffling. Instead, he announced in January that he was leaving the company. Microsoft CEO Steve Ballmer said in an email to employees at the time that Veghte "indicated a desire to run a business in a more end-to-end fashion."
At HP, Veghte will oversee a $3.6 billion division that includes offerings in IT management, business intelligence, communications and media. He tells CNet News.com, which broke the story of his appointment, that he foresees more areas of cooperation than competition between Microsoft and HP.
In a note to clients, Goldman Sachs analysts called HP's hiring of Veghte a surprise, with bigger positive implications for HP than negative implications for Microsoft.
"While HP’s software business has lagged in the past several years, and recent acquisitions of 3Com and Palm have taken the focus elsewhere, we view the surprise move as casting a renewed spotlight on this potentially higher growth and higher margin business," the Goldman Sachs analysts wrote.
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