Surplus to requirements

Emerson's chairman and chief executive officer David Farr claimed: "The embedded computing and power business is a technology leader in the industry it serves, but no longer fits strategically in our portfolio." That's an interesting statement. Emerson claims to be 'a global leader in bringing technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world'. Its five business segments are: process management; industrial automation; network power; climate technologies; and commercial & residential solutions. You'd have thought there's room for embedded solutions within most of them, particularly when the business unit you've just sold is 'a market leader in the design and supply of technologies used in communications and computing equipment and other applications'. While it's not exactly selling the family jewels, it does seem to be along the lines of selling the silverware. So why has it hived off what appears to be a business integral to its operations? It claims the market for these products is weakening and the obvious conclusion is that developing the product portfolio is costing too much and it will be cheaper to get the kit it needs from other sources. Whether those sources include its old embedded computing business remains to be seen.