Hewlett Packard Co. could spin off its PC business as it gears up to buy Autonomy Corp., the second largest software maker in the UK, for about billion.
According to a recent release by Bloomberg, the announcement could come as soon as today as HP reports Q3 FY 11 earnings after markets close.  Here we take a look at HP’s PC and software businesses and their contribution to the firm’s stock value.
H-P’s personal computer offerings, which includes desktop and notebook & netbook, are targeted at both consumer and business segments including the popular product series like Pavilion and the Touchsmart all-in-one in dekstops, Pavilion and Compaq in notebooks and Mini in netbooks.
H-P is the global leader in the PC industry making up around 18% of worldwide PC shipments in second quarter of 2011, which is well ahead of competitors like Dell, Lenovo, Acer Group and ASUS. 
H-P software offerings optimize but not necessarily drive a business–they revolve around IT infrastructure management and technology optimization.
H-P offers IT management software solutions, including support and professional services allowing clients to manage their IT infrastructure and applications. Other offerings include Information management and open call solutions that allow clients to develop and deploy voice and data network services.
According to our estimates, the software business currently makes up less than 5% of our price estimate for HP. However this could change drastically in a matter of few hours.
In a separate announcement HP confirmed it will be discontinuing its webOS based tablet and smartphone devices,  which according to our estimates are less than 1% of HP’s worth.