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Sales for the quarter dropped to $25.45 billion, down 7 percent from $27.31 billion in the year-ago quarter.

Whitman, for her part, said it is a strategic imperative that HP remain in the enterprise services business as it splits in two.

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“My view is, if we don’t have a healthy services business, that will actually compromise our overall business as we go forward,” said  Whitman. “Increasingly services is becoming the tip of the spear of how we go to market, not only to direct customers, but frankly, our partners and VARs are seeing the exact same thing.”

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