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Info-Tech issues its take on HP buyout of Palm

HP has come to a definitive agreement to purchase Palm in a deal valued at US$1.2 billion. The deal is subject...


May 4, 2010  


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HP has come to a definitive agreement to purchase Palm in a deal valued at US$1.2 billion. The deal is subject to regulatory approvals and is expected to close in HP’s third quarter.

According to Info-Tech Research, Palm has been struggling for some time in terms of both its market position and financial viability.

 

“The worldwide mobile phone market is transitioning from classic mobile phones to multifunction smartphone devices that combine the best consumer features with applications that extend the corporate computing environment into the mobile world,” the company said.

 

“Currently, Blackberry sets the standard for extending the corporate computing platform into the mobile space. IT managers are comfortable with its feature set, its manageability and its security in the corporate environment, but increasingly they are under pressure to connect more consumer oriented devices such as iPhones into the secure corporate infrastructure.”

An HP/Palm offering may well represent a credible middle-ground alternative, given their comfort level with HP as an enterprise solution provider, and the well regarded features of the Palm OS which enable things like universal search and social media integration, said Tim Hickernell, Lead Research Analyst for Info-Tech Research Group.