Fortune magazine, which in 1988 made Carly Fiorina an executive star with a feature article, reversed its opinion in the January 25th, 2005 issue ("Why Carly's Big Bet is Failing"). Commenting on the profit shortfall in Q3, Fortune blames acquisition related troubles, saying: "Three problems, all in the enterprise business, underlay this profit jolt. First, European results suffered because HP mismanaged some of its dealings with the resellers and distributors that the company works with. Second, in the U.S., project managers failed to get a new order-processing system online as scheduled, which reduced shipments of enterprise computers. Third, HP's storage business didn't meet its profit goals. Storage, intrinsically a business of lovable margins, has in fact given HP major headaches for some time."
With any mega acquisition, there are likely to be areas that don't go according to plan. One has to wonder, however, if in declaring victory after the significant cost savings were achieved, whether, Carly's team lost sight of the growth synergies that may have been possible. Perhaps there is still time to turn this around. Good luck Carly!