Case Study

Reclaiming the Pioneer: Can HP Return to the Future It Helped Create?

By Christine Pamela
Executive Summary

HP was born as an inventor, shaping Silicon Valley's earliest culture and creating multiple technology categories. Over eight decades it transformed into a scaled operator, split into two corporations — HP Inc and Hewlett Packard Enterprise — that today lead printing, PCs, and enterprise infrastructure.

The question now: Will HP continue to optimize the present, or can it reclaim the future?

HP's story is the story of a pioneer that became a defender. To remain relevant in the AI era, it must move from Core back into Edge (and at least one Beyond bet).

01

The Origin Story: A Company that Invented Silicon Valley

Palo Alto. A garage. Bill Hewlett and Dave Packard created precision electronics, and with Stanford support, seeded what became the HP Way — an innovation-first, people-first culture that defined Silicon Valley before the term existed.

1939

HP 200A oscillator — the first product that launched the company

1950s–1960s

Test and measurement leadership established HP as precision engineering pioneer

1972

HP-35: World's first handheld scientific calculator

1980s

Laser and inkjet printing revolution transforms document technology

HP wasn't following trends — it was setting them.

02

Expansion and Reinvention: Growth Through Conglomeration

From the 1950s through the 1990s, HP grew horizontally into computers, printers, networking, and services, becoming a diversified tech giant.

1999

Agilent spin-off — Core instrumentation business leaves HP

2002

Compaq acquisition — PCs and servers scale up dramatically

2008

EDS acquisition — Enterprise services expansion

2011

Autonomy acquisition — $8.8B writedown leads to governance crisis

HP increasingly became big tech run by M&A, not invention.

03

The 2015 Break: Clarity Over Complexity

To regain focus, HP split into two public companies. Both remain large S&P 500 companies operating in distinct markets.

HP Inc.

Business Focus PCs, Printers, 3D
Revenue (FY2024) ~$53.6B
Employees ~58,000
Market Role Consumer + Commercial Devices

Hewlett Packard Enterprise

Business Focus Servers, Storage, Networking
Revenue (FY2024) ~$30.1B
Employees ~61,000
Market Role Enterprise Infrastructure
04

Innovation Reinterpreted: The Theta Framework

Mapping HP's innovation arc reveals a migration from Beyond → Edge → Core over eight decades. This is normal for scaled incumbents — but dangerous in platform shifts.

🟩 Core Innovation

Examples: PC refresh cycles, LaserJet/DeskJet updates, managed print services

Outcome: Sustained margins with supplies annuity model

🟩 Core Adjacent

Examples: Commercial PCs, security hardening, fleet services

Outcome: Defending share in mature markets

🟨 Edge — Architectural

Examples: All-in-One form factors, Instant Ink subscription

Outcome: New models without new categories

🟨 Edge — Disruptive

Examples: WebOS tablets, Multi Jet Fusion 3D printing

Outcome: Mixed results; some traction in industrial segments

🟥 Beyond — Historic

Examples: Calculators, early computing, print revolution

Outcome: Created entirely new markets

🟥 Beyond — Recent

Examples: Memristor, The Machine

Outcome: Science leads product; no commercial escape velocity

05

Strategic Tension: The Past vs The Next Decade

Core remains profitable, but Core cannot secure the next decade. HP needs new value pools.

What's disrupting HP's Core engines?

06

Where the Opportunity Lies Next

Three credible pathways — all Edge to Beyond:

🟨 Edge Innovation

AI-Integrated Workflows

Leverage channel and endpoint dominance in PC+peripherals+identity management

🟨 Edge Innovation

Identity + Secure Access Hardware

PCs and printers control authentication surfaces in enterprise environments

🟥 Beyond Innovation

Distributed / Localized Digital Manufacturing

Print IP + materials science enable factory-lite computing + local supply chains

A bold Beyond move:

HP as the infrastructure of decentralized making — factory-lite computing + local supply to reduce global friction. That is a Silicon Valley origin move — creation, not protection.

07

Competitor Trajectories

HP Inc.

Path: Beyond → Edge → Core

Status: Defensive scale

HPE

Path: Edge → Core → seeking Edge

Status: Enterprise cloud + AI positioning

Dell

Path: Core → Edge

Status: AI datacenter scale-up

Apple

Path: Edge → Beyond

Status: Category maker

IBM

Path: Beyond → Services

Status: Hybrid/AI consulting

HP is the only one that began in Beyond and retreated from it.

08

Conclusion: Will HP Become a Pioneer Again?

HP's challenge is cultural as much as strategic. To survive the AI and decentralization era, HP must reclaim Edge and commit to at least one Beyond bet with conviction.

Without this shift:
It remains a global leader in declining or flat markets

With it:
HP can invent the next platform it operates in — just like it did in 1939, 1968, and 1984.

"The world remembers the companies that create markets — not the ones that defend them."

The question for HP:

Which does it want to be in 2035?