Leo Apotheker, Hewlett-Packard’s chief executive, took a small step on Wednesday to refocus his slumping company by selling its video conferencing business.
The sale was to Polycom, which makes video conferencing systems. It comes after H.P. failed to make much headway in this market despite years of trying and many optimistic statements by its executives. The price was $89 million.
Mr. Apotheker is working to revive H.P., the biggest technology company by revenue, after a string of lackluster quarters and disappointing financial forecasts. Slow personal computer sales and a troubled services business has put pressure on the company to make major adjustments.
Mr. Apotheker’s plan is to focus more on software and “the cloud,” or products and services delivered online. He has also started a revamp of the services business, which he said was suffering from inadequate investment before his hiring last year.
H.P.’s video conferencing business includes Halo, a high-end service for corporations that was created in partnership with DreamWorks Animation SKG and introduced in 2005. The technology requires companies to outfit an entire studio or conference room with multiple screens that employees can use to make presentations and collaborate with colleagues in other offices.
Halo, which costs close to $500,000, never really caught on because most companies used cheaper alternatives.
Polycom said it would integrate H.P.’s video conferencing services into its existing line of products. Additionally, H.P. agreed to resell Polycom’s products.
Video conferencing, also referred to as telepresence, is an area of particular focus in the technology industry in recent years with Cisco closing its $3.4 billion acquisition of Tandberg last year. Last month, Microsoft said it would pay $8.5 billion for Skype, a service that is widely used by consumers, but is also being pushed as a product for corporations.