Whitman seen as problem solver for Hewlett-Packard

— -- Former eBay CEO Meg Whitman, who steered the online auction pioneer's meteoric rise, is viewed as a steady captain who can guide Silicon Valley giant Hewlett-Packard back on course.

"Now, I know that HP has disappointed investors in recent quarters, and we're not happy about it," Whitman said on a conference call with reporters. "Going forward, HP will do everything in our power to meet the challenges of today's macro-economic environment and, frankly, improve our operational and financial performance."

Whitman's ascension caps a damaging 10 months for HP under Leo Apotheker. In particular, HP's surprise announcement to possibly spin off its core PC business and shutter its tablet and smartphone operations sped up the decline. Most troubling to investors, however, was the decision to pay a high premium to buy software maker Autonomy for $10 billion. Whitman quickly emerged as the front-runner for the CEO job.

The former California Republican gubernatorial candidate spent $150 million of her own cash and lost to Jerry Brown last year. Most recently, she landed at venture capital firm Kleiner Perkins Caufield & Byers in March as a part-time strategic adviser.

Analysts and investors see Whitman's arrival at the storied computing behemoth as a move to shore up a succession of problems that have dogged the company for more than a decade. Most notably, Whitman is expected to bring stronger communication skills and strategic vision. HP was seen to be lacking both of late.

"Meg Whitman has the right operational and communication skills and leadership abilities to deliver improved execution and financial performance," newly named Executive Chairman Ray Lane said, speaking for the board.

That's in stark contrast to reviews of Apotheker's performance. Wall Street criticized the former SAP executive for overpaying for Autonomy and for poorly articulating plans for spinning off HP's computing business, which remains in limbo. The later resulted in uncertainty and damage to the PC business as rivals swarmed to pick off unhappy HP customers. HP's market capitalization was nearly halved under Apotheker's watch. Shares closed Thursday at $22.80, down from more than $40 last year.

The troubles underscore a multitude of problems Whitman inherits.

"We are fortunate to have someone of Meg Whitman's caliber and experience step up to lead HP," Lane said. "We are at a critical moment, and we need renewed leadership to successfully implement our strategy and take advantage of the market opportunities ahead. Meg is a technology visionary with a proven track record of execution. She is a strong communicator who is customer-focused with deep leadership capabilities."

Her leadership at eBay, where the company soared from scrappy start-up to public Internet juggernaut, is seen by industry experts as a long-term match for HP. "A lack of clarity has eroded investor confidence in HP," IDC analyst Crawford Del Prete said. "If she can create the confidence she did at eBay, she can do the same at HP."

Del Prete also pointed out that she has the right set of skills for where HP is headed. The company is moving away from the low-margin PC business in favor of software services. "Meg is very versed in Web 2.0, the cloud, and the next generation of tech. HP will need all those skills. Meg did a great job at eBay in creating a very strong brand and fervent set of customers. That's something HP needs to do — get back that fervor with their customers."

Still, worries remain about whether Whitman's leadership of a consumer Internet company can translate to success at the world's largest PC maker. "We have some concerns about the appointment, given the highly complex and enterprise-focused nature of HPQ compared to the consumer focus of eBay," noted Standard & Poor's analyst Dylan Cathers.