HP names Apotheker new CEO

Hewlett-Packard announced Thursday that Léo Apotheker will become the company's next chief executive and president starting November 1.

Apotheker suceeds Mark Hurd at the helm of the world's largest computer manufacter after Hurd resigned last month over improprieties concerning his expense account and an HP contractor. He joined Oracle earlier this month as co-president, prompting a lawsuit and subsequent settlement with HP in which he waived any remaining compensation due to him as part of his severance agreement.

Apotheker spent more than 20 years at SAP, where he served as chief executive and helped it become a major force in the market for business software applications. The German software firm enjoyed 18 consecutive quarters of double-digit growth in software revenue under his leadership between 2004 and 2009, according to a statement from HP.

“Léo is a strategic thinker with a passion for technology, wide-reaching global experience and proven operational discipline – exactly what we were looking for in a CEO,” said Robert Ryan, a member of HP's board of directors. “After more than two decades in the industry, he has a strong track record of driving technological innovation, building customer relationships and developing world-class teams.”

Oracle's hiring of Hurd has prompted speculation the two firms will butt heads as the industry's focus shifts from producing hardware to selling cloud-based storage and services. HP outbid rival Dell for the data storage firm 3PAR last month in order to gain a foothold in the high-end data storage market. “Given HP’s diversified products and services, its financial strength, and its leadership position across markets, no other company is as well positioned to drive – and profit from – the revolutionary changes under way in the marketplace," Apotheker said.

"He has demonstrated success in the U.S. market and also has vast international experience – which will be a major asset as HP continues to expand globally, particularly in high-growth emerging markets. HP has the right assets and market positions, and now we have the best team to realize the company’s enormous potential,” added Ryan.

HP also announced that former Oracle president Ray Lane would be joining the company's board as non-executive chairman. Interim CEO Cathie Lesjak will remain with HP as chief financial officer.

“I have known and admired Léo for almost 20 years. He is ideally suited to build on HP’s strong foundation, leverage its many assets and keep the company at the forefront of innovation,” Lane said.