HPE Hewlett Packard Enterprise (US)

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Hewlett Packard Enterprise is the company created in 2015 from the spin-off of the old HP group's enterprise-oriented servers, services and software divisions. Printers and PCs are still housed in what is now separate company HP Inc. However, HPE continued to rationalise its own portfolio after the demerger, with the partial or complete divestment of several units in order to focus on networking, infrastructure, servers and storage systems. It spun off its software division (including the ill-fated Autonomy business acquired by the old HP in 2011) into UK-based software group Micro Focus, and most of its IT services business into rival Computer Sciences, now DXC Technology. Its resulting shareholdings in both companies were distributed to HPE shareholders. A similar joint venture in China with rival H3C - HPE retains 49% of the resulting business - has given the company a leading position in global servers, neck and neck with Dell. IDC estimated just under 18% share by value in 4Q 2018 to just under 19% for Dell. HPE/H3C had 18% of the global enterprise storage market to Dell's 21%. Meanwhile, the group has made a series of smaller acquisitions in areas such as AI, cloud computing and flash storage. Most services trade under the HPE banner, but it still uses the HPE Aruba brand for some mobile networking and security products. Disposals of non-core businesses have whittled down revenues from over $50bn for the year to Oct 2016 to just $30.9bn for ye 2018. Net earnings were $1.9bn that year. Meg Whitman, former CEO of Hewlett-Packard Company and before that eBay, stepped down as CEO of HPE in 2018. Her successor was Antonio Neri, previously president.

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Who are the competitors of HPE? Key rivals include Dell, Cisco, Lenovo, IBM, Huawei, Amazon, Oracle and others. See IT Sector for other companies.  

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Capsule checked 15th April 2019

Recent stories from Adbrands Update:

Adbrands Daily Update 20th May 2019: HPE agreed to buy Cray, the maker of supercomputers used for scientific research and other projects that require massive computing power. The majority of Cray's clients are government departments. The price tag is $1.4bn. Cray's performance has been mercurial recently, with topline fluctuating widely $630m in 2016 and $400m in 2017. The figure for 2018 was $456m, but Cray expects to post large losses for the current year. HPE told investors that Cray's current bookings pipeline is "way in excess" of decalred revenues.

Adbrands Daily Update 3rd Dec 2018: The US Department of Justice filed charges against Mike Lynch, founder and former chairman of British software group Autonomy, in respect of the sale of that business to what was then the old Hewlett Packard Company in 2011 for $11bn. Only a year later, HP accused Lynch of fraudulently inflating Autonomy's perceived performance prior to the sale and wrote off 80% of its purchase value. Lynch denied the charges, blaming the downturn of the business on HP's mismanagement. That case has rumbled on ever since. Autonomy's former CFO has already been convicted of fraud charges in relation to the case. In a statement, HPE said it welcomed the latest developments.

Adbrands Weekly Update 24th May 2018: Ads of the Week "Tame The IT Monster". The new campaign from Publicis North America for Hewlett Packard Enterprise is pretty adorable, especially for what might otherwise have been a rather dry, business-oriented client. That's always a big challenge for an agency: make an otherwise rather boring or esoteric product appealing for the widest possible market. Though in some workplaces, you'd probably find more than a few people prepared to put up with this particular IT monster, 'cos he's so very very cute... 

Adbrands Weekly Update 23rd November 2017: Hewlett Packard Enterprise, the now entirely independent servers and storage company, delivered somewhat weaker annual performance than its former stablemate HP Inc. Reported revenues fell by almost half as a result of a series of disposals, while comparable continuing sales slipped 5% to $28.9bn. Net earnings plunged 90% to just $344m, reflecting the absence of the prior year's large gains from divested businesses. HPE CEO Meg Whitman announced plans to step down in early 2018. Her successor will be current HPE president Antonio Neri.


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