HPE supreme dalek Meg Whitman claims that the technology industry is witnessing the start of a new world led by the Internet of Things.
Speaking at HPE Discover 2016 in London, Whitman said we are heading to a world where “everything computes” and that HPE’s vision is to be the leader in this hybrid IT market.
“We are living through the birth of a whole new world, where everything computes… From cars to stadiums, train tracks to windmills and solar panels, to much, much more. We are seeing a whole new world come into being, and it will change everything.”
Quoting Gartner, Whitman said that the number of intercommunicated devices will more than triple from 6.4 billion this year to nearly 21 billion in 2020. By 2021 there will be one billion new intercommunicated devices sold every hour.
“Harnessing this new world is what HPE is all about. Our vision is to be the leader of hybrid IT, built on secure next-generation software-defined infrastructure that will run datacentres today and bridge to multi-cloud platforms tomorrow.”
Whitman also added that HPE was not “getting out of software”.
“Earlier this year we made the decision to spin off and merge our non-core software assets with Micro Focus. We are not getting out of the software business. In fact, we are doubling down on software and infrastructure that is critical for businesses systems,” she said.
Hewlett Packard Enterprise has written a cheque for SGI, a company that makes servers, storage, and software for high-performance computing.
The deal set HPE back $275 million in cash and debt.
SGI was started in 1981 by Jim Clark, who later cofounded Netscape. It has been declining for years and was de-listed from the New York Stock Exchange, and filed for Chapter 11 bankruptcy in 2009. It was bought by Rackable Systems, which later adopted the SGI branding.
In a statement a spokesHPE said that by combining complementary product portfolios and go-to-market approaches the two outfits can strengthen the leading position and financial performance of the combined business.
Basically by combining itself with another legacy Silicon Valley brand, HPE is bolstering its enterprise-focused hardware and software with storied HPC gear.
SGI brought in $533 million in revenue in its 2016 fiscal year and has 1,100 employees, according to the statement. Customers include the Tagged, Sigma-Aldrich, and the United States Postal Service.
HPE thinks buying SGI will be neutral in terms of its financial impact in the year after the deal is closed, which should happen in the first quarter of HPE’s 2017 fiscal year, and will later be a catalyst for growth.
Buyout firms are swarming around HPE like pirhana as the outfit considers divesting assets worth between $6 billion and $8 billion, rather than the entire company.
Named in the swarm are KKR & Co LP, Apollo Global Management and Carlyle Group who have been sniffing around HPE’s rear entrances waiting to pounce the moment some asset breaks from the school. This is instead of a buyout worth more than $40 billion, although that might still happen.
HPE declined to comment, while KKR, Apollo and Carlyle are not saying anything so this is all a rumour. But if HPE guts itself and its other half is killed off by the downturn in PC sales, it could be that the once proud maker of printer ink is heading for the knacker’s yard after a slow death of 17 years. That is, if you consider the reign of the winsome Carly Fiorina, the beginning of the end.
You know your new company has finally arrived when you get your first law suit from Oracle and it seems that despite being officially only a few months old, HPE has made it.
In the old days when HP just made expensive printer ink, Oracle used to sue it regularly. The bad blood started when Oracle bought Sun Microsystems to become a direct competitor to HP in the hardware business.
Then Oracle hired HP’s former CEO Mark Hurd after Hurd left HP amidst a scandal involving dodgy expenses and a soft-porn startlet.
This new lawsuit is not particularly exciting. Oracle claims that HP “partnered” with a third-party software support called TERiX Computer Company to offer enterprises support for Oracle’s Solaris operating system. Since Oracle makes most of its money selling such support for its various software and has sued other third-party providers that try to do this kind of support for a cheaper price than Oracle.
Oracle has sued TERiX and in June a judge ordered TERiX to pay $57.7 million in damages.
Oracle says it was it uncovered this alleged relationship between HP and TERiX during that previous TERix lawsuit and now it wants to make HPE pay.
A spokesOracle said: “Oracle obtained a judgment against Terix, and will continue to pursue companies like HP that misappropriate our software for their own financial gain.”
A battle royal is on between six big companies in a bid to increase their enterprise sales.
According to IHS Tech, out of these six the leaders are Brocade, Cisco, HP and Huawei – all of which have successfully diversified their offerings.
Chinese firm Huawei – nowhere in the network enterprise stage only a few years ago – has created a dedicated enterprise unit and aiming to sell its products in “underserved” markets. Because it was originally founded by a PRC officer, Huawei is viewed with some suspicion in the USA. Huawei has sold PC servers for some time and is making a big push on selling PC notebooks in the new year.
Cisco, on the other hand, has managed to move into an “end to end” IT company and IHS believes Cisco’s position is virtually assured.
HP Enterprise is determined to stay in the game too, while Juniper is particularly strong in targeting enterprises with complicated network needs.
Brocade continues to make inroads into data centres, having positioned itself to be there from the very start, while Avaya has over 20 years experience of selling managed services, IHS said.
The bits of the maker of expensive printer ink HP which house its printer and PC business has predicted that it is going to do worse than the cocaine nose jobs of Wall Street predicted.
For those who came in late, HP split into two companies. HP, which has the printer and PC business and HPE which looks after all the corporate hardware and services deals.
It would appear Hewlett Packard Enterprise (HPE), which is headed by HP’s old CEO Meg Whitman and holds the corporate hardware and services businesses did a lot better.
The bloke who took the HP poison chalice Dion Weisler said that the PC market will remain challenged for more quarters to come.
PC sales have been falling sharply worldwide and the recent launch of Windows 10 has so far failed to reboot the industry.
Revenue in HP’s personal computer and printer businesses fell about 14 percent in the fourth quarter ended October 31, pushing HP’s overall revenue down for the fifth straight quarter.
The results are the last for the old HP before HP and HPE start to report separately.
Old HP revenue from enterprise services division fell 9 percent, while revenue from its enterprise group rose two percent. Overall, revenue at the old HP fell 9.5 percent to $25.71 billion.
Net income fell to $1.32 billion from $1.33 billion a year earlier. But on a per share basis, profit rose to 73 cents per share from 70 cents, because there are fewer shares still out there.
Hewlett Packard is no more because it has cut itself into two.
And this morning CEO Meg Whitman (pictured) will open trading on the New York Stock Exchange as the CEO of Hewlett Packard Enterprise (HPE).
The other bit of HP will be headed by Dion Weisler.
Over the last three months or so, both companies have been working out how the nuts and bolts of both businesses work, and have already divided their support web sites so that if you need a bug fix or an upload, you get directed to the relevant pages.
HPE will deal as its name suggests with the enterprise side of business, while HP Inc will carry on selling printers, PCs and the like.
The split actually happened yesterday after HP’s Whitman said it would divide itself in two in early October.
HP was formed by Dave Packard and Bill Hewlett and went into business in 1939.
HP had a rough time in the early years of this century under the stewardship of Carly Fiorina. Then followed Mark Hurd, who now works for Oracle, followed in rapid succession by Leo Apotheker, who mastermind buying Autonomy for $10 billion.
He only lasted for just under a year.