HP Inc. and Hewlett Packard Enterprise

A global technology, computing and IT services provider. 

As of Novemeber 2015, HP Company has split into two companies: Hewlett-Packard Enterprise and HP Inc. According to a press release by Meg Whitman (CEO of one of the companies, president of the other), the two companies would cooperate and share supply chains, branding and continue to buy together and bid on contracts together, at least for the first two years, to enjoy the competitive benefit of size.

Prior to the corporate separation, Hewlett Packard Company was organized into seven business segments: Personal Systems; Printing; the Enterprise Group ("EG"); Enterprise Services ("ES"); Software; HP Financial Services ("HPFS"); and Corporate Investments. As a result of the separation, Enterprise Group, Enterprise Services, Software, HPFS and certain parts of Corporate Investments are make out Hewlett Packard Enterprise. Personal Systems, Printing and the remaining parts of Corporate Investments segments are now HP Inc. As a result, Hewlett Packard Enterprise focuses on servers, storage, networking, converged systems, and services and software. Hewlett Packard Enterprise’s portfolio also includes big data analytics and applications, enterprise security, application testing, delivery management and IT operations management solutions. HP Inc.’s business focus is on personal systems (PC’s, laptops, tablets) and printing (printers, scanners, copiers).

In May 2016, HPE has announced a planned upcoming spinoff: if goes through, it is due by March 2017. According to that announcement, The Enterprise Services (“ES”) division of the newly formed Hewlett Packard Enterprise (HPE) will become a new company (name yet unknown) merged with a company named Computer Sciences Corporation (CSC). The new company, when formed, will have half of its board assigned by HPE, and will maintain the relationships with other HPE and HP Inc. divisions on existing contracts. HPE shareholders will have 50% shares of the new company, making it another member of the “HP family”.

In September 2016 HPE made another announcement about an upcoming spinoff, planned for the second half of 2017, this time cutting its Software division and merging it with the British company Micro Focus. HPE shareholders will have 50.1% of the shares of the new Micro Focus, an HPE senior executive will serve on the board of directors of the combined company, and HPE will nominate 50% of the independent directors to the combined company's board. Additionally, the new company will have to contract with HPE for some technologies for the first two years, and the two companies announced a new commercial partnership for the future use of programming platforms.

Services to the U.S. Prison System

Hewlett-Packard has been contracted by the California Department of Corrections and Rehabilitation to provide and maintain a Strategic Offender Management System for all prisoners in the State of California. We assume all prisone contracts across the U.S. will have been transferred to Hewlett Packard Enterprise.

Specialized technologies for Israeli military checkpoints on the West Bank

HP Enterprise Services, formerly EDS Israel, has provided the Israeli ministry of defense with the Basel System (development, installation, maintenance and on-going field support). The Basel System is a biometric access control system which includes a permit system for Palestinians installed in Israeli military checkpoints in the Occupied West Bank and Gaza. The system was financed by the US government following the Wye River Memorandum.

In 2016, the Israeli Ministry of defense responded to a freedom of information inquiry submitted by Who Profits, and stated that HPE is contracted to maintain the Basel biometric system in West Bank and Gaza checkpoints at least until the end of 2017.

Other companies involved in the Basel system:

  • L-1 Identity solutions (part of the Morpho Group): A public American company that provided its FaceIt(R), a facial recognition technology to the Basel Project.
  • Oberthur Technologies: A French company traded in the Euronext. The company’s division "Smart Cards USA" supplied microprocessor ID cards for the Basel Project.
  • Polimil and the DataCard Group: The DataCard Group, a private American company provided the enrollment and issuing subsystem for the Basel Project, through its exclusive Israeli distributor, Polimil.
  • Recognition Systems (part of the Irish Allegion group): A public American company that provided hand geometry readers for the Basel Project.

Services and Technologies to the Israeli Army and Navy

HP has provided services and technologies to the Israeli army, among which the administration of the Israeli navy's IT infrastructure. The Israeli navy enforces the naval blockade on the Gaza Strip since 2007. The IT infrastructure provided by HP to the Israeli navy was used by the Israeli military as a pilot for implementing the same system to the entire army, a “virtualization project” contract won by HP in 2009. In the same year, HP Global won another contract to supply all computer equipment to the Israeli military. The contract was signed for three years with an option to prolong it for another two years.

In addition, in May 2011, HP received a four years tender to implement and assimilate ERP SAP systems for the Israeli army in hundreds of thousands NIS. In December 2011 HP won a 500 million NIS tender to provide, implement and maintenance all the servers in the Israeli security forces. The tender is for three years with an option for another two years extension. HP would provide the Israeli army with servers and also provide and assimilate accompanying equipment.

Services and Technologies to the Israeli Prison Services

According to a response received on December 2013, from the Israel Prison Service (IPS) to a freedom of information request by Who Profits. HP is contracted to provide printers and maintenance of HP systems and central servers until 2016, in the amount of tens of millions of shekels.

HP also provides technological services to the Israeli prison's authority. In August 2012, the Israeli prison authority announced the signature of a contract with HP without a tender for the provision of central servers for the operational system of the IPS, "Tzohar". HP will also provide maintenance services for these servers. In addition, HP executed a project of e-mail storage and archive in the IPS.

According to a report of the state comptroller, in August 2006 the IPS published a tender to establish a new computing system, "Kidma" system, which was supposed to replace the information system of the IPS. In October 2007 the IPS signed a contract with HP to develop the system, which was supposed to include a human resources system, prisoners' management system, prison management system and an intelligence sub system. Initially the budget of the project was 43.2 million NIS. In 2004 it increased to 62.5 million NIS. The budget didn't include the maintenance of the system and until 2012 the budget increased to 144 million NIS, more than three times the initial budget. The project was supposed to be executed in 23 months and was estimated in 43 million NIS, yet, the project took 5 years and cost over 144 million NIS. The IPS commissioner stated that since 2010, the IPS hasn't been paying HP any funds. The IPS froze the money transfer to HP back in 2010 and in 28 February 2013, the IPS signed a termination contract with HP. Eventually, the amount paid to HP was 126 million NIS and the company completed 3 out of four systems that were required.

In a response to a freedom of information inquiry submitted by Who Profits in 2014, the Israeli Prison service stated that HP is contracted to provide printers and to maintain HP systems and central servers in the Israeli prisons during 2016.

Services to Illegal Settlements

HP operates a development center in Beithar Illit which employs ultra ortodox women. Beithar Illit is an illegal Israeli settlement city in the occupied West Bank. EDS has started this center in 2006 and in 2008 it has been taken over by HP. The center used to be in a facility belonging to the Beithar Illit municipality and in January 2012 HP expanded it and built another structure for the center with a three-year grant from the Ministry of Trade and Industry for hundreds of thousands of NIS a year.

HP provides services and technologies to two of the other biggest Israeli settlements in the occupied West Bank: Modi'in Ilit and Ariel. Matrix IT and its subsidiary Tact Testware, which provide technological services to HP, are located in the illegal settlement Modi'in Ilit. Matrix IT distributes HP computers, servers and virtualization solutions. Matrix IT's personnel were trained by HP to provide software and services. Tact Testware provides HP with licenses and services in the field of testing and automatization.

HP has participated in the "Smart City" project in the illegal West Bank settlement of Ariel, providing a storage system for the settlement's municipality. The illegal settlement of Ariel was chosen by the Israeli government as a pilot city for this program.

Management of discriminatory registry and ID systems

The company operates and maintains the Aviv system as a subcontractor of the Israeli Ministry of Interior Affairs. Aviv is the registrar and database of the population, immigration and border control authority. HP has been operating this system since 1997 without a tender. The Aviv system is stratified by ethnicity and religion, and it is used to produce compulsory IDs for all residents, clearly marked by ethnicity and religion. The Aviv system also includes the "Yesha database" registrar of Israeli citizens in the settlements.

In 2008, HP signed a contract with the Israeli Ministry of Interior for the production and manufacturing of biometric ID cards for Israel's citizens, including the Palestinian residents of Israel and occupied East Jerusalem.

In 2011 HP was contracted without a tender to install a standpoint for the population registry, and facilitate the Arbel project, replacing Isralei passports with biomentric passports. The Arbel project includes creating a database of Israeli citizens, stratified by ethnicity and religion. In 2013, state employees of the project were replaced by HP employees. In 2013, HP was contracted without a tender to supply hardware to the issuing machines, other than the software and the machines themselves.

In 2014, the population and immigration authority contracted HP to continue the maintenance and development of the foreign workers system (Maoz system) and assimilate the system into the Aviv system.

Effects of the corporate split

There are several HP subsidiaries in Israel, with 6000 employees, in 7 locations and 4 production sites. With the split between HP Inc. and HPE, these have split accordingly: Hewlett-Packard (Israel) has split into two companies, sitting on different floors in the same offices. HP Indigo and HP Industrial Large Format, both dealing with printing, are probably under HP Inc. HP Labs, one of the main three R&D centers globally, is now part of HPE. So are HP Software R&D and HP Enterprise Services. With the upcoming spinoffs, HP Enterprise Services (formerly EDS), would become a part of the new company established with CSC, and HP Software R&D (formerly part of Mercury) will become part of the new Micro Focus.

HP's long list of contracts with the Israeli Ministry of Defense, Ministry of the Interior, the Israeli military and prison service have probably all moved to HPE. The extent of HP Inc.’s connections to these contracts is yet unclear. With the first CSC spinoff, we assume that the maintenance of the Basel System, along with other old EDS projects such as the Beithar Illit R&D center, would go to the new company. Software checks in settlements would probably go to the new Micro Focus. We do not know what is planned for the contracts for the army and navy servers, the ID contracts and population registry contracts.

According to the UN Guiding Priciples on Business and Human Rights and the OECD Guidelines, companies need to exercise a due dilligence process regarding all business operations that are related to human rights violations and violations of international humanitarian law, involving the communities most affected by these violations. if a company is unable to exercise its leverage to mitigate or prevent the human rights violations with which it is linked through its business relationship, the company is required to withdraw from this relationship altogether. Both HP Inc. and Hewlett Packard Enterprise have extensive and advanced human rights corporate policies endorsing these guidelines, and yet they have failed to engage with stakeholders or even publicly report about these and potentially other business relations they have in the Israeli occupation.


 

Economic Activism Highlights

 

  • On April 12, 2016, the College Council of the University of Chicago passed a resolution to Divest University funds from apartheid, urging the university “ to withdraw, within the bounds of their fiduciary duty, investments in securities, endowments, mutual funds, and other monetary instruments with holdings in companies profiting from human rights abuses and violations of international law in Palestine, including, Hewlett-Packard."
  • March 25, 2016, The Unitarian Universalist Association and its endowment fund have implemented a human rights screen and divested from companies complicit in human rights violations, including HP Inc. and Hewlett Packard Enterprise.
  • On March 6, 2016, the Vassar Student Association voted to support the international BDS movement and to divest from companies profiting from Israeli human rights abuses, including Hewlett-Packard.
  • On March 1, 2016, the University College London Union voted to support the BDS campaign, stating that the student union will “not have any commercial or investment relationship with companies that participate in Israeli violations of international law, including G4S, Veolia, HP and military companies that supply Israel such as BAE Systems and Raytheon.”
  • The Undergraduate Student Government Assembly at University of Illinois-Chicago unanimously voted on February 16, 2016, to pass a resolution to divest from corporations profiting off the Israeli occupation and other human rights violations, including Hewlett-Packard.  
  • On January 19, 2016, a landslide vote by the University of South Florida student senate passed a joint resolution to divest from corporations who profit from "illegal and brutal occupation" in Palestine, including Hewlett-Packard. The resolution was later vetoed by the student government president.
  • In November 2015 the student government at San Jose State University voted to divest from "companies that play an active role in the human rights violations committed by the Israeli Government in the Occupied Palestinian Territories" including HP. 
  • In November 2015, the University of California Santa Cruz student government reinstated a divestment resolution against HP that had originally passed in 2014, but was suspended pending an appeals process. The resolution calls on the university to drop its investments in any company that "profits from the Israeli occupation of Palestine." 
  • In October 2015 the Human Rights Council of the city of Portland, Oregon demanded that the City Socially Responsible Investments Committee place HP on the city's "Do Not Buy" list due to its complicity in "serious human rights violations in the ongoing illegal and brutal Israeli occupation of Palestinian land." 
  • In May 2015 Princeton graduate students passed a referendum calling on the university to divest from companies such as Hewlett-Packard as it is "complicit in the Israeli occupation of the West Bank and blockade of the Gaza Strip."
  • In May 2015 the Olgethorpe University Student Senate passed a resolution to divest from Hewlett-Packard “based on evidence of their active role in human rights abuses in the West Bank and Gaza Strip.”
  • In April 2015 the Student Senate of Earham College passed a resolution in support of divestment "from companies directly involved in the Israeli occupation of Palestine", including Hewlett-Packard.
  • Northwestern University students voted to divest from HP in February 2015, citing its involvement in the Israeli ID card system and global mass incarceration.
  • In February 2015 the University of California Student Association, the official governing assembly of all University of California students, passed a resolution calling for the university to divest from companies “that violate Palestinian human rights,” specifically mentioning HP.
  • Students at UC Los Angeles passed a resolution to divest from HP in November 2014, because it “provide[s] biometric identification systems used at Israeli military checkpoints, which restrict the freedom of movement of Palestinians, facilitate discrimination against Palestinians, and reinforce a stratification of citizenship.”
  • In 2014, Britain’s National Union of Students called on its members to boycott HP because it is “complicit in financing and aiding Israel’s military.”
  • In 2014, the University of New Mexico’s Graduate and Professional Student Association targeted HP for divestment because it “has restricted the freedom of movement of Palestinians and reinforced a stratification of citizenship by providing biometric identification systems used at Israeli military checkpoints.”
  • At UC Santa Cruz, in 2014, the student senate passed a divestment resolution against HP, stating “HP systems are installed in Israeli military checkpoints specifically designed to control and monitor Palestinian civilian movement and in military prisons.”
  • In June 2014, the Presbyterian Church's General Assembly voted to divest from HP, citing "ten years of unsuccessful engagement with the corporation on its involvement in home demolitions."
  • UC Riverside’s student government passed a resolution in the spring of 2014, stating HP “restrict[s] the freedom of movement of the Palestinian peoples within the West Bank by providing biometric identification systems used in the Israeli military checkpoints
  • Loyola University in Chicago passed a 2014 divestment resolution that stated HP “provides discriminatory identification systems used by the Israeli military checkpoints and profits from mass incarceration.”
  • A 2014 referendum passed by students at DePaul University decreed that HP “profit[s] from Israel's violation of the human rights of Palestinians and minorities within Israel.”
  • Nordea Bank engaged HP in 2014.
  • Students at UC Berkeley, in April 2013, passed a resolution against HP, stating it “provide[s] equipment, materials and technology to the Israeli military, including bulldozers and biometric identification systems.”
  • The Oberlin College student senate voted in 2013 to divest from HP due to its “injustices perpetrated on the Palestinian people by Israel.” 
  • Students at Canada’s York University Graduate Student Association voted in 2012 to divest from HP, citing its role in “Israeli human rights violations, war crimes and oppression.”
  • The Friends Fiduciary Corporation (Quakers) divested in 2012, citing HP’s role “provides IT consulting services to the Israeli Navy.”
  • In November of 2012, the Associated Students of UC Irvine voted unanimously to divest from HP, citing its “restricting the freedom of movement...by providing biometric identification systems used in the Israeli military checkpoints.”
  • The United Methodist Church began engaging with HP in 2008, citing concern over “human rights policies and practices in Israel,” and four regional conferences voted to divest from it in 2013.