Wednesday, April 25, 2007

More on HP and Logoworks

Very little additional news and analysis is coming out regarding HP's (NYSE HPQ) move to acquire Arteis, parent company of Logoworks. So kudos to the bloggers that have taken a look at the story and its meaning.

One of the first good ones to come to my attention is from Donnna Bogatin at the ZDNet Micro-Markets blog with a post entitled "HP to Google, Intuit: It’s OUR small business cloud, too!". Interesting to be part of a "cloud" huh!

Tom Taulli at BloggingStocks on AOL Money and Finance also comments on the acquisition in a post entitled "Logoworks reels in HP". That title is a little strange to me, as a $100 Billion revenue giant like HP would typically be the "reel-inner" in an acquistion of a relatively tiny company. Taulli also goes on with a couple of other statements that might misdirect the reader.

Logoworks got its start in 2001 and, as its name implies, helps companies come up with cost-effective logos and other designs. The firm has a team of 40 designers who are on location (not outsourced to some far-away location around the globe).

The company did not disclose its revenues but it has served over 45,000 customers, some of which include biggies like Disney Co. (NYSE: DIS) and Microsoft Corp. (NASDAQ: MSFT).

First, Logoworks has designers on staff but their real magic is the blending of the in-house group's talents and capacities with a worldwide network of hundreds of wired-in free-lance designers.

And, Disney and Microsoft are not the intended targets of this service! While the big names were a plus for Logowork's credibility as a stand-alone service, the acquisition is clearly a small business play for HP, as Taulli acknowledges near the end of his post.

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