HP's earnings -- the untold story

Yesterday Hewlett-Packard reported a 51 percent jump in second-quarter profit.  That is good.  But what has gone under reported by most of the media is that HP continues to see declines in selling enterprise systems, with big iron server sales down seven percent.  Why?  Lack of demand for PA-RISC and Alpha systems, which HP is planning to EOL; checkout story from The Register.  H-P has stopped investing in its own processor architecture altogether, and is trying to steer customers to systems based on Intel's Itanium instead.  Customers aren't moving to Itanium-based systems at anywhere near the levels H-P and Intel predicted, and this lack of adoption really calls into question H-P's long-term viability in the enterprise space.  At the very least it will be interesting to watch what develops over the next few quarters.
Mark Richardson
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