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Hewlett Packard Enterprise HPE


One of the companies which resulted from the section of the American corporation HP in 2015.


Revenue and Net Profit billions



+ Hewlett Packard Enterprise (HPE)

Solutions and ecosystem of HPE

Hewlett Packard Enterprise is the company offering the technology innovations accelerating business conversion. Makes servers, supercomputers, storage systems, storage area networks, network equipment, the convergent systems and also is engaged in creation of cloud infrastructures and solutions in a segment of Internet of Things.

The range of software products of Hewlett Packard Enterprise includes solutions in the following areas:

  • quality management of providing business services;
  • management of IT services and project portfolio;
  • automation of DPC and creation of cloud platforms;
  • management of development and testing;
  • Big Data, analysis and management of unstructured information;
  • backup and data recovery, archiving;
  • information management and security events;
  • management and testing of security of applications;
  • protection and data encryption.


By December, 2018 the structure of HPE company consists of the following main divisions:

  • Hybrid IT (servers, storage systems and some network equipment);
  • Intelligent Edge (Analysis systems of data and development of solutions on platforms on which data are generated. The products HPE in the field of Internet of Things belong to such technologies);
  • Financial Services (financial services).

Performance Indicators

2019: Recession of revenue for 6% to $29.14 billion because of the flat demand for servers

In 2019 financial year which came to an end on October 31 the 2019th calendar HPE gained $29.14 billion that is 6% less, than the previous year. If to exclude sales of servers for data centers of Tier 1 (the company almost completely contracted this business) and rate fluctuation of currencies, then sales were reduced not so strongly — by 2%.

As notes Bloomberg, revenue of HPE was reduced in every quarter 2019 of a fiscal year whereas before there was growth. Falling began owing to easing of demand for servers which, in turn, was caused by economic problems.

In 2019 financial year of HPE gained $29.14 billion that is 6% less, than the previous year

According to the head of HPE Antonio Neri, the intense situation in world trade creates uncertainty that lead to lengthening of sales cycles of products. Besides, because of geopolitical factors some clients postpone order placement, he added.

In 2019 reporting year revenue of division of HPE Hybrid IT (servers, DWH, network equipment) reached $22.8 billion, having decreased by 7% in comparison with the 2018th. Revenues of the company in the market of servers decreased by 8%, and sales of storage systems dropped by 2%. At the same time the American vendor pointed to growth in sales of products in the field of high-performance computing and hyper convergent infrastructure for 15% and 25% respectively. Implementation of Nimble Storage jumped by 35%.

On servers 56% of annual revenues of division of HPE Hybrid IT, were the share of DWH — 16%.

In the direction of Intelligent Edge (an analysis system of data and development of solutions on platforms on which data are generated; the products HPE in the field of Internet of Things belong to such technologies) at the end of 2019 fiscal years revenue in the amount of $2.8 billion is registered. It is 3% less, than the previous year.

The annual net profit of HPE was $1.05 billion that there is significantly less profit of year prescription in $1.91 billion[1]



Salary reduction to the management for 25%

On May 21, 2020 HPE announced the large-scale program of expense optimization which among other things assumes salary reduction of top managers. The undertaken measures are directed to that by 2022 to save not less than $1 billion.

Since July 1 and until the end of 2020 financial year, the basic salary general directors and heads of level of the executive vice president will be reduced by 25%. Besides, board members agreed to decrease by 25% of annual compensation in $100 thousand.

HPE reduces salaries to top managers by 25% to save $1 billion

Short-term decrease (for four months) salaries is entered also for normal employees. At the same time it is not specified in what regions and as far as payments will be cut down. It is noted that in the countries in which it is forbidden to reduce salaries workers will be sent on the underpaid leave.

Also HPE intends to review the real estate portfolio, to strengthen transition to digital customer interaction and to take other measures directed to overcoming the crisis caused by the outbreak of a coronavirus of COVID-19.

I expect that 50% of employees will never return to office. It means that offices will become the place for joint work, but not the place where you just come to work every day — the CEO of HPE Antonio Neri at the conference devoted to the publication of financial statements said.

According to him, the company does not know what will be "new normality" upon termination of a koronavirusny pandemic, however already now redistributes resources in the growing business directions, digital projects and areas allowing to increase business performance.

On May 21, 2020, when HPE announced the expense reduction program, stocks of the company fell in price for 6% at electronic biddings after closing. exchanges. Since the beginning of year of quotation sank for 35%.[2]

Scytale purchase — software developer for systems which are not trusting to anybody

At the beginning February, 2020 HPE announced Scytale purchase. The financial component of the agreement of the company did not begin to be opened. Read more here.


Purchase of the developer of the file system for the analysis of the Big Data MapR Technologies

At the beginning of August, 2019 HPE announced acquisition of the developer of the file system for the analysis Big Data MapR Technologies. In more detail here.

Purchase of the producer of the Cray supercomputers for $1.3 billion

On May 17, 2019 HPE officially announced acquisition of the producer supercomputers Cray for $1.3 billion. It is about the largest purchase by HPE company which appeared as a result of separation Hewlett-Packard. In more detail here.

The former financial director of Autonomy is sentenced to 5 years of prison for fraud before the transaction with HP

On May 13, 2019 the former chief financial officer of Autonomy Sushovan Hussain was sentenced to 5 years of imprisonment for fraud before the conclusion of the transaction within which the company was sold to producer of the computer equipment Hewlett-Packard for $11.1 billion in 2011. Read more here.


Growth of revenue by 11% to $30.9 billion thanks to servers and DWH

In 2018 financial year which is closed on October 31 the 2018th calendar revenue of HPE made $30.9 billion that is 7% more in comparison with previous year. If not to consider rate fluctuation of currencies, then sales to the company rose by 5%. Revenue fell in the 2017th.

In the division of HPE Hybrid IT which is responsible for business of the company in the field of servers, storage systems and network equipment, annual revenues rose by 6%, having exceeded $25 billion. Sales of servers increased by 8% to $13.8 billion. Even stronger income in the market of DWH — grew by 13% to $3.7 billion. Implementation of network solutions for data centers was equal to $225 million that for 5% exceeds an indicator of year prescription.

Financial performance of HPE for 2018 financial year

In division of support and consulting  of HPE Pointnext turnover remained almost invariable — $7.3 billion. Business in the field of financial services brought the companies of $3.7 billion revenue against $3.6 billion the previous year.

In an Intelligent Edge segment (analysis systems of data and development of solutions) the company earned $2.9 billion for 2018 financial year from platforms on which data are generated that is 13% more in comparison with the 2017th. For sales of the products HPE Aruba $2.6 billion (+14% year on year), were the share of HPE Aruba services — $310 million (+12%).

For the 12-month reporting period which end fell on October 31, 2018 the net profit of HPE was $1.9 billion, having increased with $344 million the previous year.

Financial performance of HPE for 2018 financial year

The most part of revenues of HPE — 40% for 2018 a fiscal year — still arrives from North America. The market of the USA, in particular, provided the company with revenue in the amount of 33% of total. In EMEA region the share of turnover made 37%, in the Pacific Rim — 23%. Most strongly revenues of HPE grew in the countries of Europe, the Middle East and Africa: here in 2018 reporting year 13 percent rise took place.[3]

Purchase of software developer for BlueData

At the end of November, 2018 HPE announced BlueData acquisition to accelerate development of artificial intelligence and Big Data. The cost of the transaction which is going to be closed until the end of January, 2019 is not published. Read more here.

Recommendations to partners to buy server chips from AMD, but not from Intel

In September, 2018 HP Enterprise (HPE) began to urge the partners to buy server processors from AMD instead of Intel not to face a problem of shortage of chips.

However, as writes the Taiwan informational portal DigiTimes with reference to sources in a supply channel, other producers of servers have no problems with purchases of server solutions of Intel. Possibly, the recommendations of HPE to the partners confirm strategy changes.

HPE urges partners to buy server AMD processors instead of Intel

According to analysts of IDC, in the second quarter 2018 of HPE conceded to Dell the first place in the market of servers and recorded 12.4 percent decrease in supplies of equipment. The market share of the American company fell from 20% to 15.1%.

HPE cooperated with Foxconn for work in the market of servers for cloud data centers, aiming to offset loss of orders from clients who instead of the local infrastructure developed on the objects preferred public clouds. Three-year partnership of HPE and Foxconn did not bring significant results, and since then the American vendor prefers to work alone at the market of servers. However the competition escalates because of presence of the numerous ODM manufacturing supplying the equipment directly to DPCs here.

HPE was forced to shift focus to delivering solutions and services to cloud providers of "the second echelon". But also here the companies at which the prices were never advantage faces pressure from the ODM companies.

HPE adjusts the direction of development of the server business: instead of stimulation of deliveries the company is more focused on additional benefits in the products to strengthen the competitiveness. Partly it explains falling of natural indicators of vendor.

By September, 2018 Intel remains the largest producer of server processors from shares about 95%. With such domination the company can change priorities of deliveries to orchestra seats according to their sales volumes, but not added value.

There were several attempts of Qualcomm, AMD and IBM to undermine monopoly of Intel. Also efforts of HPE are noticed: the company cooperates the Ministry power engineering specialists USA in development supercomputer based on ARM processors. The recommendations of HPE about use of the products AMD quite could become the next attempts of the company to shake the dominating positions of Intel.[4]

Investment of $4 billion into "smart" Internet of Things

In June, 2018 Hewlett Packard Enterprise (HPE) announced intention to invest $4 billion in the Intelligent Edge direction. Analysis systems of data and development of solutions on platforms on which data are generated concern to it. Such technologies in the company are called "smart" Internet of Things.

We will accelerate our investments into research and development to advance and implement within Intelligent Edge new products, services and consumption patterns in many areas, including communications, security, boundary calculations, automation, machine learning and artificial intelligence — the CEO of HPE Antonio Neri at  the HPE Discover 2018 conference in Las Vegas said.

The Intelligent Edge direction is closely connected with boundary calculations which differ from  cloud in the fact that collecting and  data analysis is carried out not  in  the centralized computing environment, such as DPC, and  in  that place where there is a generation of data streams. The digital devices ( which are not necessarily in  one location) which then transfer these data  in real time to  the central repository are data sources.

$4 billion mentioned above will go to research and development in the field of security, artificial intelligence, machine learning, automation and actually boundary calculations.

Antonio Neri selected two technologies which at the first stage of implementation of new strategy will play an important role. The first of them — the software-defined WAN solution SD-Branch managed in a cloud. It simplifies deployment and management of all components of network which connects HPE branches with the central office.

The second technology — computing architecture using memory. It allows to accelerate data processing in boundary devices.[5]

Plexxi purchase

In the middle of May, 2018 HPE announced purchase of software developer for data centers of Plexxi, but did not set acquisition value. In 2016 investors estimated Plexxi  at $267 million according to the results of a financing round. Read more here.

RedPixie purchase

In April, 2018 HPE announced the conclusion of the final agreement about purchase of service provider of consulting in the field of cloud services of RedPixie. Read more here.

Cape Networks purchase

At the end of March, 2018 Hewlett Packard Enterprise (HPE)  announced purchase of the developer of tools for control of networks Wi-Fi Cape Networks. Acquisition value did not begin to be disclosed. The maximum prior to the beginning of April, 2018 is going to close the transaction. In more detail here.

Restructuring — creation of division of Hybrid IT

On February 23, 2018 it became known that the Hewlett Packard Enterprise (HPE) company created new structural division of Hybrid IT. This direction integrates the computing equipment for data centers, storage systems and network equipment. Hybrid IT headed structure there was a sales director of HPE Phil Davis.

According to the memo of the company which was at the disposal the CRN edition, assets in the field of program and the hardware and also different services belong to new division. According to the CEO of HPE Antonio Neri, work of Hybrid IT will be devoted to creation of infrastructure on the basis of software and solutions which "will allow to simplify management of multicloud environments and local infrastructure".

In February, 2018 HPE carried out restructuring

Nery reported that restructuring of the company is necessary for creation of the innovative solutions in the field of Hybrid IT and Edge according to customer needs.

The company always aimed to be guided first of all by buyers, and new structural conversions will help it to propose those solutions in the field of the software and the structure of Internet of Things with elements of artificial intelligence which completely conform to customer requirements, he added.

It is expected that with Hybrid IT creation the HPE company will pass to an operational model of the next generation which will help vendor to increase profit considerably.[6]

This new operational model will strengthen positions of the company, and I am sure that is that it is necessary for us for transition to essentially new level — Nery said.

He also reported that the senior vice president of HPE Aruba Keerti Melkote will become the president of division of Intelligent Edge, and Irv Rothman will continue work as the head of division of financial services of HPE.


Fall of profit by 9 times to $344 million; recession of revenue for 6% to $28.9 billion

In 2017 financial year revenue of HPE made $28.9 billion, having decreased by 6% of rather previous year. In indicators the sold division of HP of Enterprise Services is not considered. Taking into account its results in 2016 revenue of HPE exceeded $50 billion.

Net profit was reduced more than by nine times — from $3.16 billion to $344 million. So large difference is caused by sale of a number of assets, including the Indian IT outsourcer of Mphasis and producer of network equipment H3C Technologies which indicators ceased to be considered in the 2017th. Besides, HPE incurred heavy expenses on restructuring.

Distribution of revenue of HPE by divisions and regions

According to the results of 12-month reporting period which came to the end on October 31 2017 calendar year, revenue of division of Enterprise Group to which the IT equipment belongs (servers, storage systems, network devices) turned out equal to $26.2 billion that is 6% less than an indicator of year prescription.

Annual sales of the HPE servers decreased by 8% to $12.7 billion. In segments of storages and network equipment the company earned respectively 3.1 and 2.5 billion dollars that for 3% and 11% it is less in comparison with results of 2016 financial year. Income from IT services was $7.9 billion, in 2018 financial year they finally will not be considered in revenues of the American producer as this business was selected and sold to Computer Sciences Corporation company.

Dynamics of change of revenue of HPE in regions

In 2017 to financial year financial services generated HPE revenue in the amount of $3.6 billion that is 13% more, than the previous year.

The most part of revenues of HPE are still the share of Northern and Southern America where the company received 42% of revenue in 2017 financial year. In EMEA countries (Europe, the Middle East, Africa) the share made 35%, in the Pacific Rim (excepting Japan) — 23%. Turnover of the company was reduced in all specified markets, and the strongest regress (for 7%) is recorded in the Pacific Rim.[7]

Directors lost bonuses

At the beginning of December, 2017 it became known that directors and non-management employees of Hewlett Packard Enterprise (HPE) were left without bonuses because of unsatisfactory financial results which are shown by the company.

According to The Register, thousands of employees of HPE were deprived of an award as the company could not implement the sales plan in 2017 financial year. For 12-month reporting period which end fell on October 31, 2017 revenue of vendor decreased by 6%.

Directors and thousands of employees of HPE were left without bonuses because of unsatisfactory financial results

The main divisions on release of the equipment showed recession, and business on release of professional services recorded zero dynamics of change of income. What indicators were expected by the company, the edition does not specify.

In 2017 financial year indicators in some segments of business fell short of planned therefore bonuses in these divisions will not be paid — the representative of HPE says. — In other segments which showed results at the level or above the planned values awards were written out. Our employees play a crucial role in success of HPE, but we treat the company which pays for results. It is very important for us that remunerations completely corresponded to our business results. It should be noted especially that any of the senior heads did not receive an annual bonus.

Set to Antonio Neri who will become a CEO on February 1, 2018 salary in the amount of $1 million and appointed an award in the amount of a salary plus 150% at accomplishment of certain financial tasks.

Loss of bonuses will become sick blow for employees who without that are in tension against the background of large-scale restructuring under the name HPE Next. This program assumes considerable cost reduction on personnel, including on business trips and lunches.[8]

Antonio Neri is the new CEO

On November 21, 2017 the CEO of Hewlett Packard Enterprise (HPE)  Meg Whitman announced resignation after six years of the management of the American IT corporation. Its place will be taken on February 1, 2018 by the president of HPE Antonio Neri.

Liquidation of management at the level in EMEA

In November, 2017 HPE announced liquidation of one leading level in EMEA countries (Europe, the Middle East, Africa). Positions of sales executives of the company in this region and the USA were eliminated, and occupying them according to Andy Isherwood and Jim Merritt are dismissed. Duties of these already former top managers will be executed by Phil Davis appointed the global sales director of HPE. Read more here.

Entry into the market a blockchain services for business

Hewlett Packard Enterprise (HPE) helps the large companies with cloud computing, data centers and Internet of Things, and in November, 2017 the Forbes magazine learned about entry of the company into the market a blockchain services for business.

HPE intends to begin to offer business technology of the distributed registers since 2018

Within the blockchain-as-a-service model (a blockchain as service, BaaS) HPE will offer corporate clients, including banks, an opportunity to use technology with big scope, than popular blockchains bitcoin and Ethereum which have restrictions allow.

The company announced that since 2018 it will begin to offer technology of the distributed registers (Distributed Ledger Technology, DLT) for crucial tasks and will provide the necessary hardware to the corporate users wishing a message own a blockchain transaction or to work with the clients implementing a blockchain in a cloud.

We consider that the blockchain will become the same fundamental technology as the Internet — Raphael Davison, the director of HPE on a blockchain said to the edition.

The top manager called bitcoin "version 1.0 blockchain" and noted that many companies and even the central banks which look for effective methods of money transfer are interested in technology. Despite interest, many are afraid it to use as are not sure of reliability and security of technology.

According to Devison, HPE offers the next version, Blockchain 2.0 intended for transactions between the organizations.

About bitcoin in the distributed register public information on all perfect transactions that is problematic for the companies, not persons interested to devote competitors in the transactions is stored in a case. The solution HPE, on the contrary, is constructed on the alternative Corda blockchain platform developed by bank consortium R3 which allows to save information of private and allows the parties to see transactions only with the permission of the partner.

Also Devison noted that HPE already works on Blockchain 3.0 which will connect a blockchain and Internet of Things.[9]

Sale of the headquarters in Palo Alto

At the beginning of November, 2017 the Hewlett Packard Enterprise (HPE) company which is in a heat of the large-scale restructuring program directed to reduction of $1.5 billion expenses in three years announced sale of the headquarters in Palo Alto (California, the USA) and its transfer to the hi-tech building in Santa Clara (also in California) where the headquarters of child Aruba is located.

HPE sells the building of the headquarters

The building more than 21,600 sq.m to which Aruba moved on January 1, 2017 was built as a show-window for the products Cloud First and Intelligent Edge which are developed by the company. Here developments of Aruba with intellectual connection for all six floors of the building, including services with a geolocation through a special application for a campus enter.

HPE reported that are going to distribute about 1000 employees of the headquarters in Palo Alto on three objects: to Aruba headquarters, HPE building in Milpitas and to office in San Jose which took over by HPE in 2017 together with acquisition of manufacturing company of storage systems Nimble Storage earlier. HPE said that are going to complete moving by the end of 2018.

The CRN edition notes that property sale in Palo Alto is directly connected with successful merge of department of HPE Enterprise Services to Computer Sciences Corporation, occurred earlier in 2017 therefore the DXC Technology company and also accession of software division of HPE to Micro Focus company was created.

Representatives of HPE reported that even with sale of the headquarters in Palo Alto the company will continue together with HP Inc. support office of founders Bill Hewlett and Dave Packard and also nearby Hewlett-Packard Garage where Hewlett-Packard was founded.

The president of Edge Solutions company (the partner of HPE) Michael Haley told that sale of the headquarters in Palo Alto shows as far as HPE became more economic and flexible independent company.

Everything that does HPE, does the company more convenient for business both for clients, and for partners. The complexity is equal to cost — Hailey noted.[10]

HPE stops sale of cheap servers to large cloud customers

In October, 2017 the Hewlett-Packard Enterprise (HPE) company announced the refusal to deliver inexpensive servers to large cloud providers, like Microsoft and Amazon. The American IT corporation decided to focus on the most profitable equipment of the high level.

According to Fortune with reference to the president of HPE Antonio Neri, the company stops sales of the "standard" servers released according to the customer order of the first echelon.[11]

The representative of vendor explained to the edition that Amazon, Google, Microsoft, Facebook, Apple, Tencent, Alibaba and Baidu treat such customers. HPE intends to cooperate with them further, but delivering them only highly profitable storage systems, network equipment, the hyper convergent systems and servers.

Sale of standard servers brings very small margin and does not give to the company the chance for provision of services. Therefore we adjust our strategy to reinvest these resources in solutions and services which will promote increase in profit — Nery said.

Not clearly, how many chief operators of cloud services are ready to buy more expensive servers or even other branded equipment when they can select specifications of the equipment and make by its forces of the not branded producers offering cheaper services notes Fortune.

The analyst of Moor Insights & Strategy Patrick Moorhead assumes that among the largest consumers of servers only Microsoft can do it. However, according to the expert, HPE and other producers of corporate servers have great number of other clients: for example, cloud providers of the second echelon and telecommunication operators.

Carried Dropbox, eBay, and some other companies building the business in a cloud to clients of the second echelon of Antonio Neri.

Business among suppliers of cloud services of the second level grows quicker, than among clients of the first — Murkhed emphasized.

In March, 2017 the CEO of HPE Meg Whitman said that the company faced "considerable decline in demand" for servers from one leading client. According to the Bloomberg agency, then it was talked of Microsoft. In June when HPE recorded the falling sales of inexpensive servers again, Whitman let know that the company should review the position on this market.

In October, 2017 the head of HPE declared failure of HPE to work at the market of cheap servers to focus on the most profitable systems.

The partners of HPE polled by the CRN edition claim that failure of the producer to deliver inexpensive servers to the leading cloud providers slightly will influence sale of the HPE servers via the channel as the vendor offers different lines of the equipment.

Hewlett-Packard entered the market of "standard" cloud servers in 2014 (before the company was separated into HPE and HP Inc.), having begun cooperation with the Taiwan contract producer of electronics Foxconn known, first of all, as the "screwdriver" assembler of mobile devices of Apple.

Under the direction of Uitmen HPE continues to advance the powerful server hardware which sales make for the company a lot of profit. However the problem is that many large companies even more often refuse purchase of the servers and disk storages placed in the data centers and prefer to place the data and applications in a public cloud.

Not only HPE faces this problem. In 2014 IBM sold the business on release of servers on Intel processors of Lenovo company for $2.3 billion.

Reduction of geography of presence twice

In October, 2017 Hewlett Packard Enterprise (HPE) announced reduction of geography of the presence twice. More than 80 countries in which the corporation works do not make for it profit, and revenue from them is insignificant is small.

At an annual meeting with analysts which took place on October 18, 2017 the president of HPE Antonio Neri said that the company is going to reduce the number of the markets of the presence from 160 countries to 76 as these 76 states provide vendor 100% of profit and 99.5% of sales.

HPE cuts presence geography by half
Today we work more than in 160 countries. It is too much, this heritage of our last business of HP in the field of computers and printers. After HPE became more concentrated company, our opportunities concentrated on smaller quantity of foreign markets … It will allow us to be more purposeful and to transfer our resources to those areas where we see the highest return for the company and shareholders. In the countries from where we will leave, business will develop only via the partner channel — Nery said.

HPE cuts down a work zone within the restructuring program HPE Next announced in June, 2017. Its purpose — concentration of the company on the highly profitable services allowing to increase profit and also cost reduction.

Within the undertaken reforms of HPE redistributes resources. In particular, production operations are reduced and research and development is increased. By 2020 the company is going to reduce the number of the manufacturing enterprises from 17 to 7.

It is supposed that HPE Next will allow the company to save about $1.5 billion. About a half of this money will be reinvested in sales, operating activities and research and development, Antonio Neri heading this program reported.[12]

Reduction of 10% of the state

On September 22, 2017 it became known of mass layoffs in Hewlett Packard Enterprise (HPE). The company reduces number of staff within the restructuring directed to optimization of activity and costs.

According to the news agency Bloomberg, HPE is going to reduce not less than 5 thousand people that corresponds to about 10% of the state. Before split of Hewlett-Packard on HPE and HP Inc. in corporation about 350 thousand employees worked. After separation in both companies thousands of working positions liquidated tens and also separated several key divisions.

Head of HPE Mag Uitmen

According to the agency, under reductions employees of HPE both will get to the USA, and in other countries. Among them there will be not only non-management employees, but also the people holding different executive positions.

In June, 2017 HPE announced the three-year restructuring program under the name Next. Simplification of structure of business (in particular, the company began to reduce the number of levels of management) and also cost reduction became its purpose.  The company was going to reduce costs for $200-300 million in the second half of financial year which will come to the end at the end of October of the 2017th calendar. In total the Next project should save to IT vendor about $1.5 billion.

Actually we clear away an operational model and an organization structure to simplify our work — the CEO of HPE Meg Whitman said in September, 2017.

The The Wall Street Journal newspaper writes that dismissals of employees became a part of reaction of HPE to gain of the competition in the market and increase in prices for component parts.[13]

Creation of company DXC

April 3, 2017|Hewlett Packard Enterprise announced completion of the transaction on department of business in the field of corporate IT services and its merge to Computer Sciences. As a result of consolidation of assets the new company under the name DXC Technology was created. Read more here.

Plan of creation of division of Pointnext

On March 7, 2017 it became known of intention of Hewlett Packard Enterprise to create based on service division the direction under the name Pointnext. This initiative - a part of strategy of HPE directed to corporate customers.

Division reference point - for work with the cloud systems, Internet of Things, processing of Big Data and also hybrid IT services and analytics. The Pointnext group was headed by the general manager Ana Pinchuc.

As a part of Pointnext the Operational Services team (operational services) is formed, she should be responsible for development of methods of providing IT services through management and optimization of workloads, resources and capacities within local or cloud space. Here a number of products and services, like HPE Flexible Capacity and HPE Datacenter Care will be included.

The project of the company is provided by more than 25 thousand specialists from 80 countries of the world, offering support in 30 languages. In duties of staff of HPE Pointext the help to clients in issues of digital transformation. They will help customers of the company to digitize their main transactions, to implement the innovation projects to optimize hybrid infrastructure.

HPE Pontnext will undertake training of customers in skills of work with analytical tools, databases, will teach work with intelligent devices, will support when updating or developing corporate applications with focus on achievement of results.

Service starts at the end of March, 2017 when the company merger with third-party service provider of CSC comes to the end.

Purchase of Nimble Sorage for $1.09 billion.

On March 7, 2017 HPE announced purchase of the producer of storage systems Nimble Storage for $1.09 billion. Thanks to this transaction the buyer hopes to strengthen the positions in the fast-growing market a flash systems. Read more here.

Purchase of SimpliVity for $650 million

On January 17, 2017 the American producer of IT solutions Hewlett Packard Enterprise (HPE) announced purchase of SimpliVity for $650 million. The cost of sale of equipment manufacturer for data centers was six times less than the amount which the mass media which learned earlier about the transaction reported. Read more here.


Decline of revenue by 4%

On November 22, 2016 HP Enterprise published the first annual report in the status of the independent company. Business of the American producer of the corporate IT equipment after separation from Hewlett-Packard is reduced.

For the 12-month period which end fell on October 31, 2016 revenue of HP Enterprise made $50.1 billion that is 4% less, than the previous year. At the same time net profit rose by 28.5%, having reached $3.16 billion.

Business of HP Enterprise after separation from Hewlett Packard is reduced

In 2016 financial year the division of HP of Enterprise Group which is engaged in development and promotion of servers, storage systems, network and other equipment recorded turnover at the level of $27.2 billion against $27.9 billion the previous year.

According to observers of the The Wall Street Journal (WSJ) edition, server business which brings to HP Enterprise more than 40% of turnover has two main problems. The first — this development of own IT equipment by large potential clients, such as and Google. The second — strong competition from Dell which in the fall of 2016 absorbed the world's largest producer of storage systems of EMC. According to analysts of IDC, in the third quarter 2016 the share of Dell in the world market of servers grew by 2 percent points of rather same period of the 2015th, and the indicator of HP Enterprise was left without changes.[14]

At the end of 2016 fiscal years the direction of corporate IT services provided HP Enterprise with revenue in the amount of $18.9 billion whereas income was measured in the 2015th by $19.8 billion. The volume of software business in a year was also reduced — from 3.6 to 3.2 billion dollars. Sales of financial services made $3.2 billion.

WSJ notes that annual revenues of HP Enterprise will be reduced from 50 to 30 billion dollars as in 2016 the company announced separation from itself of divisions on rendering IT services and software development with the subsequent their integration with competitors.

In a year after finding of independence of quotation of HP Enterprise jumped by 58% thanks to programs of capital repayment to investors through dividend payout and share repurchase of stocks.[15]

Sale of cloud company assets of Suse

On November 30, 2016 the German software maker open source of Suse announced acquisition of a part of cloud business of Hewlett-Packard Enterprise (HPE). At the expense of this transaction which cost does not reveal the buyer expects to accelerate revenue growth and to master the new markets.

Suse buys the assets of HPE connected with cloud platforms of OpenStack and Cloud Foundry. The last and also other PaaS-solutions will form the basis of the corporate product Suse Cloud Foundry addressed to partners and clients of the European company, said in her statement.

The Linux software Suse producer buys cloud assets of HPE

Sale of the business concerning OpenStack and Cloud Foundry does not mean leaving of HPE from the corresponding market. The company will use these technologies developed by Suse in the solutions Helion OpenStack and Stackato. Within the agreement Suse will become preferable Open Source-partner HPE in the field of Linux, OpenStack and Cloud Foundry.

The commitment to creation of technologies for open software-defined infrastructures which are important for our clients and partners became the driving force of this acquisition — the CEO of Suse Nils Brauckmann comments on purchase of business of HPE. — Besides, the transaction shows how we build our business at the expense of a combination of organic growth and acquisition of technologies.

According to the senior vice president and the head of division of HPE Software-Defined and Cloud Group Ric Lewis, the transaction with Suse will allow the company to focus on development of new generation of hybrid cloud solutions.

Sale of cloud assets of HPE was announced nearly three months later after the American vendor announced accession of the software division to Micro Focus company for $8.8 billion Micro Focus Suse owns.[16]

The division on software development is sold to Thoma Bravo for $9 billion

On September 2, 2016 it became known of plans of HPE - to sell software division of Thoma Bravo investment company. Transaction amount ~ $8 - $10 billion.

The Reuters agency connected sale of POE division with falling of its revenue. After completion of the transaction the director of HPE Meg Whitman, is going to concentrate activity of the company on network equipment, storage systems, data processing centers and the related services. This second large separation of assets of HPE since separation from HP Inc in 2015[17].

The Goldman Sachs investment bank undertook sale of POE assets of HPE. The top price offered by bank - $7.5 billion Thoma Bravo not against to pay more, despite discrepancy with the management of HPE in assessment of assets. Offers of HPE were made by the companies Vista Equity Partners Management, Carlyle Group and TPG Capital. In media information was heard, with reference to insiders, about probable sale of POE division to other buyer or offers Thoma Bravo of a part of assets.

Thoma Bravo is interested in purchase of division, it owns several firms operating in the field of software development - Dynatrace and Compuware. This fact can facilitate sales process. In the management of Thoma Bravo believe - their POE assets will work more effectively in integration with assets of HPE.

On September 2, 2016 after publications about probable plans of HPE, the share price grew by 4% - up to $22.16 apiece. The market value of the company for this date ~ $36.8 billion.

Net proceeds of POE division of HPE in 2015 reached $6.3 billion that for $0.3 billion it is less, than in 2014. The company explained falling of revenue with shift of demand in the market towards cloud computing.

Part of POE assets of HPE received with acquisition Autonomy for $10.3 billion in 2011. Earlier, in 2006 HPE redeemed software maker of Mercury Interactive for $4.5 billion. The platform of the analysis belongs to large POE assets of HPE Big Data Vertica and ArcSight, she acts in the field of information security and IT management.

Purchase of SGI for $275 million

On August 11, 2016 HPE announced purchase of SGI. At the expense of this transaction the buyer is going to strengthen positions in the markets of solutions for analytics and supercomputer calculations.

Acquisition of SGI will cost HPE $275 million that there correspond $7.75 counting on one stock of the absorbed company. A day before the declaration of sale of SGI securities of the company cost 30% less than the cost of the transaction. After HPE announced purchase of SGI, the last quotation jumped by 29%. Read more here.

Merge of HP of Enterprise Services to Computer Sciences

On May 24, 2016 Hewlett-Packard Enterprise (HPE) announced department of business of IT services and transfer of his Computer Sciences company. At the expense of this step of HPE she intends to focus on cloud services and other fast-growing directions. Read more here.

Sale of MphasiS for $1.1 billion

On April 4, 2016 Hewlett Packard Enterprise announced sale of the IT outsourcer of MphasiS belonging to the company. The cost of the transaction will exceed $1 billion.

Hewlett Packard Enterprise sells at least 84% of the shares of MphasiS of the American investment company Blackstone Group at the price of 430 rupees apiece that there correspond about $825 million. The remained 16 percent share will be sold within the so-called obligatory tender offer. In case of its approval, Blackstone will pay for MphasiS purchase in total about $1.1 billion.


Reduction up to 30 thousand jobs

On September 16, 2015 HP announced plans to dismiss a huge number of employees. This personnel cleaning will concern corporate business of the company.

HP will cut down 10% of the staff in corporate division

On November 1, 2015 instead of one HP two companies — HP Inc will work at the market . (will focus on computers and printers) and Hewlett-Packard Enterprise (the equipment, the software and services for corporate clients). In the last there will also take place mass reductions.

As it appears from the message of HP, in Hewlett-Packard Enterprise number of staff will be reduced by 25-30 thousand people that corresponds to about 10% of the staff of future company.

Due to restructuring which is to a large extent connected with transformation of business of corporate IT services (division of HP of Enterprise Services), it is going to cut down annual expenses on $2.7 billion, however, at first the company should spend this amount for carrying out a liquidation procedure of working positions.

"These restructuring measures will allow new Hewlett-Packard Enterprise to be more competitive and to rationalize expense structure, – the president and the CEO of HP Meg Whitman who will head on November 1, 2015 Hewlett-Packard Enterprise says. — For the last few years we did huge amount of works on cost reduction and simplification of business processes, and these last steps will eliminate need for any corporate restructuring in the future".

Mag Uitmen read rather pessimistic forecast for perspectives of the company. According to the top manager, the market of corporate IT solutions will grow for 4-5% a year, and growth of HP will be less large and will correspond approximately to growth of world GDP. Its head explains weak progress of the company with difficulties in such markets as China, Brazil and Russia.

At the end of 2016 the profit of Hewlett-Packard Enterprise at the level of $1.85-1.95 for an action at a flow of free money in the range from $2 billion up to $2.2 billion is expected. At least a half of this amount is going to be returned to investors in the form of dividends and share repurchase of stocks.[18]

Start of the procedure of selection of HP of Enterprise (HPE)

On July 3, 2015 the official procedure of selection of production division of Hewlett-Packard knew of the beginning in the separate independent enterprise with the name of HP[19].

The company submitted to the U.S. Securities and Exchange Commission (The United States Securities and Exchange Commission, SEC) the request Form 10 with an explanation what financial performance characterizes work of the division transformed to HPE within the last several years.


Financial results

According to promulgated data, in 2014 the profit of HPE was $1.6 billion, revenue — $55.1 billion. In 2013 - $2.1 billion and $57.4 billion respectively.

Experts of Bloomberg paid attention to the debt of HPE — $1.45 billion by April 30, 2015. The general long-term and short-term loans and loans of HP reached $21.6 billion. It turns out, the most part of debt obligations is connected with HP Inc. Data on this company in the documents SEC are not published as it, unlike HPE, is not created by separation from the main legal entity. It was announced that financial performance of business of HP Inc. will become property of the public after holding a procedure of separation, i.e. after November 1, 2015.

Declaration of division of HP into Hewlett-Packard Enterprise and HP Inc.

On October 6, 2014 Hewlett-Packard confirmed officially plans of the section of assets for two public companies.

  • HP Enterprise (HPE) is infrastructure business, software development and services;
  • HP Inc - the successor of production business of the PC and printers, she will reserve right to use of the operating logo of HP.

Separation of assets should come to the end until the end of 2015 financial year - on October 31, 2015 at Hewlett-Packard. It is expected that after separation shareholders of Hewlett-Packard will receive shares both Hewlett-Packard Enterprise, and HP Inc.

On November 1, 2015 one company will turn into two - Hewlett-Packard Enterprise and HP Inc., in the course of it what changes will affect 2800 applications and 75 thousand application programming interfaces.

HP Enterprise will begin to work with products for data centers, such as servers, data storage devices, network equipment and software and also corporate services. Also product development of The Machine on the basis of memristors will be conducted here, the working prototype should be shown next year.

Meg Whitman, the president and the chief executive officer of HP, together with the chief financial officer of HP Cathie Lesjak, will pass to similar positions into Hewlett-Packard Enterprise.

1939-2014: Creation and development of Hewlett-Packard (HP) company

Основная статья: History of Hewlett-Packard (HP)

The history of HP - one of the largest American corporations among the information technologies working at the market - a classical example of the business created in a garage, and which reached really global sizes.

See Also


Stock price dynamics

Ticker company on the exchange: NYSE:HPE