This Business Model Just Won't Work

Where, specifically, are the goalposts?Whitman is not short on confidence. The main mantra she chanted throughout Wednesday's revenues call outlined a three-pronged attack. HP wants to "make sure that we own" cloud computing, security, and information management. Not just for a during, nevertheless for decades to come.

Cloud computing, information security, and handling of the enormous datasets that drive modern businesses are maybe the hottest concepts in IT today. Whitman intends HP to dominate all three.

What not to doIn fact

What not to doIn fact, Cisco Systems has already tried a version of this tactic. Not satisfied with absolutely crushing the market for networking equipment, CEO John Chambers set out on a quest to capture some consumer sales during also invading new parts of the data center. That didn't work out too then.

Now Cisco has all nevertheless abandoned the consumer play and lost crucial ground to smaller networking rivals. Only the effort to launch additional enterprise hardware seems to be working as planned, and even that took years to gain traction. Longtime investors can't be too pleased, though Cisco looks like a decent investment at today's depressed valuation.

More models of futilityCompare and contrast Whitman's rosy-cheeked outlook to that of Sears chairman Eddie Lampert, who laments "poor financial results in 2011" nevertheless hopes to make Sears' Craftsman and Kenmore brands as cool as Apple . This moonshot comes from a celebrated investing genius who has failed to turn Sears' oodles of assets into investor returns afterwards eight years of trying. If he hasn't made iPhone-class lust objects out of Kenmore refrigerators but, I don't think it will happen.

The language in Whitman's bold goals reminds me of these proven failures. It's a deal-breaker in my book, because business leaders need to stay in touch with reality.

The roost in cloud computing

Find out who rules the roost in cloud computing and Big Data today. Here's a hint: No single company spans these markets with authority but. I think you'll agree that Meg has picked some tough nuts to crack. My bearish CAPScall on HP will stand until she changes her mind about this crazy strategy.