Hewlett Packard, the US computer manufacturing giant, has announced it is to split into Hewlett-Packard Enterprise and HP Inc following a leaked report in the Wall Street Journal, writes Anna Milne

The former will deliver corporate IT infrastructure, software and services and the latter PCs and printing systems. HP has found some success in selling its financial software services and core banking systems around the world, predominantly in developing economies for smaller banks.

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The separation into two businesses will enable each business to better concentrate on improving dedicated services. HP Financial Services will continue as normal under Hewlett-Packard Enterprise and also provide services for customers and partners of HP Inc.

"By leveraging its HP Financial Services capability, the company will be well positioned to create unique technology deployment models for customers and partners based on their specific business needs. Additionally, the company intends for HP Financial Services to continue to provide financing and business model innovation for customers and partners of HP Inc.," it said in a statement.

The transaction is expected to be completed by the end of fiscal 2015.

This is the fourth year of HP’s five-year turnaround plan and much of that time has been spent plotting a split. HP flirted with the idea of separation back in 2011, after it acquired Autonomy Corp, UK software company but was pressured into keeping it intact by shareholders.

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The news comes hot on the trail of the eBay and PayPal split and makes sense, given that its corporate IT services out-performs its PC and printer retail sales. Meg Whitman, who was once CEO of eBay, will be president and CEO of Hewlett-Packard Enterprise.

"By transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders," Whitman said.

We should expect big things from HP in the 3-D printing world as it focuses its efforts to try and recoup some of the loss suffered in the PC market. The companies printers have continued to sell well through a declining PC market.

"HP has reignited its innovation pipeline, strengthened its go-to-market capabilities, rebuilt its balance sheet, and inspired its workforce and management teams. The company is now positioned to accelerate performance, drive sustained growth and demonstrate clear industry leadership in key areas," said the statement.

HP Inc will be headed up by Dion Weisler and Whitman will be chairman of this board.