HP expects its SMB revs to go up in 2005

SAN FRANCISCO: Hewlett-Packard Co.'s revenue in the small and medium-sized business market in 2005 will rise in "double digits" from 2004, said a senior executive.

"We think we're going to grow faster than the market and take some share," Kevin Gilroy, who runs HP's small and medium business (SMB) group, said in an interview. The group had revenue of $24 billion in fiscal 2004, which ended on Oct. 31.

"We see ourselves growing in the double digits," Gilroy said, adding that current expectations for 2005 revenue growth in the SMB market are about 8 percent.

HP's SMB group includes sales of its computers, so-called industry-standard servers, notebook PCs, printers, software and services, but does not include revenue from the sale of ink cartridges, Gilroy said.

Gilroy said HP, based in Palo Alto, California, is already the largest vendor of information technology in the SMB market.

He also said HP this week will lock down its 2005 spending plans for marketing and advertising for the SMB market. "We will have a material increase in our marketing spend focused specifically on SMB," Gilroy added.