Hewlett-Packard (NYSE: HPQ) is a diversified technology company that has reached several key milestones in recent years. In 2010, revenue was $126 billion.^[1]

The drivers of HP's recent success have been two-pronged. The company has undergone significant cost cutting measures. At the same time, the company has focused on driving growth in key areas such as software and services. Software and services are generally much higher margin than hardware. IBM, which generates most revenues from services, realizes operating profits nearly twice as high as either HP or Dell. This transition continued with HP's acquisition of business network producer Electronic Data Systems (EDS) in August 2008. In 2009, HP completed its acquisition of Palm for $1 billion, or $5.70 per share, giving HP a foothold into the smartphone market.^[2]

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