H-P's (HPQ +2.6%) $8B services write-down is good news for the company, thinks IDC's Crawford...

|About: HP Inc. (HPQ)|By:, SA News Editor

H-P's (HPQ +2.6%) $8B services write-down is good news for the company, thinks IDC's Crawford Del Prete, since it indicates H-P is trimming a lot of fat from the division as part of its restructuring. The market for giant outsourcing deals has turned soft, Del Prete notes, and new growth opportunities, such as re-writing apps for cloud support, aren't as labor-intensive. Along with the write-down, H-P said it will record a $1.5B-$1.7B pre-tax restructuring charge in FQ3, above prior guidance of $1B.