Tag: HP

Beta distribution goes the way of Betamax

Beta Distribution has crased owing £36 million according to a recently filed administrator’s report.

Deloitte was appointed as administrator for the failing distributer in October, and it declared that Beta did not have enough money to cover debts owed to unsecured creditors.

“We do not think that the companies have sufficient property to enable a distribution to be made to unsecured creditors,” the letter said.

Beta reported a £186 million turnover in its last financial year ending 31 March 2017  but owed over £14 million to trade creditors, and three million to the tax man.

HP revenue beats estimates

The maker of expensive printer ink, HP, reported a  quarterly revenue that thrashed analysts’ estimates,  thanks to growth in its systems business that sells notebooks and desktops and the acquisition of Samsung’s printer business.

The personal systems business, which accounts for more than 60 per cent of HP  total revenue, rose 11 percent to $10.06 billion, beating analysts’ average estimate of $9.78 billion.

The company had the second position in worldwide PC shipments in the third quarter with a 22.8 percent market share, down from 23.9 percent in the preceding quarter, according to research firm International

Jane Ashworth takes over from Andy Bass at Lenovo

banner_220x220 as its channel director taking over from Andy Bass who cleaned out his desk last month.

Ashworth worked as UK MD at SMART and has the job of upping sales in Lenovo’s UK SMB business.

She said: “I am thrilled to be joining Lenovo which is such an innovative company and at a pivotal time in its performance journey. I’m very much looking forward to working with our channel partners to strengthen partnerships and support them in their delivery of tomorrow’s technology today. Lenovo is a strong, dynamic company with an excellent product portfolio and talented team. The refreshed channel programmes are helping to streamline processes for channel partners, and I’m excited about joining the company and supporting Lenovo’s ambition to grow the business alongside our channel partners.”

It looks like she means it.

Before her time at SMART, Ashworth was commercial sales manager role at the original Hewlett Packard and was a Sony general manager .

Of Ashworth’s appointment, Lenovo’s UK general manager Preben Fjeld said: “Our channel partners are fundamental to our continued growth plans and Jane’s strong background in channel sales, channel development and product management will further propel and energise the relationship with our partners in the UK and Ireland.”

HP buys Apogee

HP today announced a definitive agreement to acquire UK office equipment dealer (OED) Apogee.

The transaction values Apogee as of closing at £380 million.

This acquisition furthers HP’s plan to disrupt the $55 billion A3 copier market and builds on its printing strategy to: enhance its A3 and A4 product portfolio; build differentiated solutions and tools to expand its Managed Print Services (MPS); and invest in its direct and indirect go-to-market (GTM) capabilities. This includes the selective acquisition of OEDs that provide access to increased profit pools from higher margin services. Or so HP thinks.

“The Apogee acquisition extends HP’s print leadership by boldly leveraging the industry shift to contractual sales as we aggressively pursue the A3 office market,” said Enrique Lores, President, HP Imaging and Print. “We’re augmenting our go-to-market and enhancing our ability to deliver the services necessary to win in the profitable contractual market. This deal complements our broader channel strategy and HP remains committed to building our business through our best-in-class partner programme.”

HP has been investing in the A3 business with strategic initiatives including the acquisition of Samsung’s printer business and the launch of a portfolio of superior A3 and A4 multi-function printers based on unique IP and value-added services and solutions. Today’s transaction expands HP’s services portfolio in contractual office printing and MPS categories, where solutions are increasingly important for small and medium businesses (SMBs).

Apogee is an OED. The company brings what HP considers to bestrong capabilities in contractual printing services and solutions, an experienced leadership team and access to SMB and mid-market customers.

The deal is expected to close by the end of calendar year 2018, pending regulatory review and other customary closing conditions.

Following the close, Apogee will operate as an independent subsidiary of HP, with a governing board comprised of HP and Apogee management. Apogee will have the same commercial relationship with HP as any other premium partner with access to the same tools and partner programmes, HP reckons.




Server sales are up due to supply shortages

HP-MicroServerWorldwide server revenues grow by a third but while that is a good thing for vendors it is more due to supply shortages, according to analyst outfit Gartner group.

Apparently a shortage in components for server hardware, alongside currency fluctuations, has driven up the cost of servers in EMEA.

Worldwide server revenue increased 33.4 percent in the first quarter of the year and shipments grew 17.3 percent  year over year.

Adrian O’Connell, research director at Gartner, said the EMEA server market’s strong start to 2018 is largely driven by scarcity of materials increasing the cost of gear.

“The cost of certain components is increasing due to supply shortages, and this is compounded by recent currency volatility increasing the figures for revenue when measured in US dollars. The very modest rate of shipment growth demonstrates the effects of system pricing”, he said.

In EMEA, this caused revenue to grow by almost a third year-on-year to $3.7 billion for the quarter, while server shipments totalled just 517,000 units, an increase of only 2.7 percent  year-on-year.

Analysts said that ongoing supply constraints in memory would continue into the second half of 2018, and that this is affecting the market and driving most revenue growth.

Dell EMC experienced a huge 51.4 percent revenue growth in the first quarter of 2018, widening the gap between it and second-placed HPE. Dell EMC recorded a 21.5 percent market share, followed closely by HPE with 19.9 percent  of the market.

In EMEA, HPE maintained its primary spot, but it was third-placed Lenovo that had the strongest growth of 70 percent, Gartner said. This strong growth is partly due to comparison with a weak first quarter in 2017, as Lenovo’s business has been declining since the System X acquisition.

Dell EMC saw the second strongest growth rate of the top five vendors. “Dell EMC continues to perform well in EMEA”, said O’Connell. “The first quarter is usually a good quarter for Dell EMC, but it’s attained a record revenue share level in in the first quarter of 2018 and reduced the gap between itself and HPE to under 10 percent now.”

Gartner said the modest shipment growth rates suggest that market demand hasn’t increased much, and that ongoing memory supply constraints would continue into the second half of 2018.
“The very positive revenue performance, however, along with strong adoption at the start of this upgrade cycle, means it is at least a much more positive start to 2018 than we saw at the start of 2017”, said the report.

HP sauces up Device as a Service offerings

INDUSTRY HP 1The maker of expensive printer ink,  HP, is expanding its Device as a Service offerings.

The new DaaS products feature new predictive analytics capabilities available as a service to support a broader range of customer needs, and enhanced options for simplifying IT support with HP Tech Café Market.

HP head of Personal Systems Services Guy Collet said:  “Our continued expansion of services offerings reflects HP’s deep commitment to meeting the changing needs of the workforce. These expanded services provide smart, simplified solutions for the modern workforce and unlock new growth opportunities for our customers, our channel partners, and our business.”

This service from HP enables customers to analyse hardware performance, detect potential problems in advance, and proactively implement corrective actions. The unique data analytics capabilities of HP DaaS are now available on Windows, Android, iOS, and macOS devices – creating a multi-OS solution that’s designed to boost IT efficiency and improve employee experiences.

HP DaaS agreements can be tailored to fit customers’ unique needs by easily adding specific device lifecycle services. Today the company introduced HP Tech Café Market Enhanced, an end-to-end vending and storage solution that provides instant access to accessories and 24/7 lockers for device swaps or repairs. In addition to vending and storage, HP will manage the ordering, replenishment, and reporting for customers. The solution supports the needs of an increasingly mobile workforce and significantly simplifies life for IT departments.


Notebook sales increase

Multipurpose-NotebookThe global notebook market is improving with 164.7 million units shipped in 2017 according to TrendForce’s latest market report.

The figure represents a 2.1 percent year-on-year increase, massively surpassing all expectations and forecasts. The reason for the increase has been biddings for notebook contracts in North America and regional economic recovery

HP remains the market leader with more than 24 percent of the market share. Its annual shipments hit a new milestone of 40 million units, a substantial increase of 10.5 percent over 2016.

For 2018, the market share of the top six brands is expected to rise to 89.1 percent, squeezing the room for other brands to develop.

Xiaomi and Huawei recorded growth in the Chinese market, but the results of their overseas deployment are unclear.

Lenovo saw a year-on-year drop of 4.9 percent. It enhanced its sales in Asia and Europe but still cannot make up the shipment decrease in 1H17. This has an impact on the brand’s performance, making its market share down to 20.2 percent, ranking the second.



HP expands its customise-to-order programme for schools

schoolHP has expanded its ‘customise-to-order’ (CTO) programme by adding a promotion to boost the value for money the education sector gets from its technology.

The CTO approach, which is implemented through the channel, was trialled six months ago with a desktop-only catalogue. It has now extended it to include the 400-series laptop.

The new scheme, HP for Education, allows those that invest in HP hardware to collect credits or cashback of up to £250 per device. These can be used by schools against software, training or device upgrades.

HP has also launched its Parental Contribution Scheme to allow parents to purchase education-specific technology for their children attending primary or secondary school via instalments.

HP’s education business director Neil Sawyer said that schools have tight budgets and have to make difficult decisions every year between buying much-needed education hardware or investing in software such as education programmes and training courses.

“We want to stop schools from being forced to minimise their IT assets or forgo software purchases to invest in vital education technology.”


Whitman starts cleaning out her desk

Meg WhitmanHPE’s Whitman announced she is quitting as the CEO and claims that her channel track record was a critical aspect of her six year reign.

On 1 February 2018, Whitman will be replaced by the current president Antonio Neri, who joined HP in 1995 as a customer service engineer in the EMEA call centre.

Shareholders were not happy – HPE’s shares were down by nearly eight percent in after-hours trading, despite Q4 results topping expectations.

Whitman was appointed as HP CEO in September 2011 following the departure of much-maligned predecessor Leo Apotheker and quickly implemented a five-year turnaround.

She hived off the printer and PC arm of HP in 2015, and put in motion the most significant corporate divorce in history.

HPE’s headcount is now standing at less than 50,000, compared with nearly 350,000 when she joined.

In the UK she was known for dropping in on top HP resellers, including Softcat and CDW in the UK for tea and biscuits and talk up HP and HPE’s channel-friendly credentials at its partner summits.

According to HPE’s statement today, the vendor improved customer and partner satisfaction under her leadership, as well as rebuilding its balance sheet, strengthening operations and reigniting innovation.

HPE has delivered a shareholder return of 89 percent – three times that of the S&P 500 – HPE pointed out.

“I’m incredibly proud of all we’ve accomplished since I joined HP in 2011”, Whitman said.

“Today, Hewlett Packard moves forward as four industry-leading companies that are each well positioned to win in their respective markets. Now is the right time for Antonio and a new generation of leaders to take the reins of HPE. I have tremendous confidence that they will continue to build a great company that will thrive well into the future.”

HPE’s Q4 revenue rose five percent year on year to $7.8 billion, the company also announced.

Whitman will remain on the HPE board of directors.



HPE quits Palo Alto

bd_stone_1989In what is an end of an era, Hewlett Packard Enterprise (HPE) will save a bit of cash by leaving its Palo Alto headquarters and moving to nearby Santa Clara.

The predecessor HP company was based in Palo Alto from its founding in 1939 until it was split in two in 2015. HP is still based in the city.

In a press release, HPE said that the company no longer needs a facility of the current size and will look to sell the property – splitting employees between three other facilities.

The move comes as HPE continues its radical $1.5bn cost-saving measures that will see thousands of employees laid off, as well as the reported closure of a facility in Roseville, California.

The Aruba offices in Santa Clara will become HPE’s new global headquarters, while other employees will be split between facilities in San Jose and Milpitas.

HPE CEO Meg Whitman said: “Over the past two years we’ve made tremendous progress towards becoming a simpler, nimbler and more focused company.

“I’m excited to move our headquarters to an innovative new building that provides a next-generation digital experience for our employees, customers and partners.

“Our new building will better reflect who HPE is today and where we are heading in the future.”

HPE said it will continue to support the HP garage – the garage where Dave Hewlett and Bill Packard formed HP, now a museum – and the HP Founder’s Office, which served as HP’s headquarters until 1981.

HP talks up the printer industry

history-of-print-16th-century-printing-companyWhile sales of printers are dropping faster than Donald Trump’s popularity, HP has splashed out and written a $1.05 billion cheque for Samsung’s printer business.

The move gives it the strongest A3 printer portfolio on the market along with 1,300 researchers and engineers joinomg HP from Samsung – along with 6,500 printer patents.

HP CEO Dion Weisler said: “As we ignite a renaissance in printing, we’re thrilled to bring together the industry’s best and brightest talent.

“Together we will build on more than 30 years of print leadership to accelerate our strategy, disrupt new market opportunities, and provide our customers and partners with unique and highly innovative print solutions.”

HP thinks that the A3 market is now the biggest opportunity in the printer space, worth an estimated $55 billion.

As part of the acquisition, Samsung will make an equity investment of between $100 million and $300 million in HP through open markets. Figures released last week suggested that the only place in the world were printer sales had not dropped was the UK – where they stayed the same.


HP is making inroads into 3D printing

o-OFFICE-3D-PRINTER-facebookA while back HP promised that it would take the lead in 3D printing and it is starting to look like it is making good on that promise.

Vendor snuck into fifth place in industrial 3D printer market in Q2, four years after Meg Whitman declared that HP intended to lead the market. To be fair though HP has only had products in the 3D printer market for a year and to get to the top five from no-where is some feat.

With its Jet Fusion line up, HP sold $13.5 million of industrial 3D printer hardware in the second quarter of 2017.

According to beancounters at Context HP took a four percent share of the industrial segment of the market in Q2, behind names that will be less familiar to the channel, namely market leader Stratasys, EOS, GE Additive and 3D Systems.

HP began “pushing strongly” into the channel in the first half of the year, “setting itself up for further growth later this year and beyond”, Context said.

The industrial sub-segment Jet Fusion plays in has experienced mixed fortunes since then, with unit shipments declining in both 2015 and 2016.

Context predicts that the industrial sector will return to growth in 2017, partly thanks to the fresh blood that has entered the market.

Polymer machines continued to dominate the market in Q2, accounting for 90 per cent of the unit volume sales and 61 percent of the printer revenues, Context said.

While HP’s machines are initially focused on polymers, GE Additive – which is another new entrant to the top five – focuses on metal 3D printing.

Context vice president of global analysis Chris Connery said that there was a four per cent decline in the number of industrial/professional 3D printers shipped in the second quarter of this year compared to the earlier year, but the average selling price of these machines continued to climb.

“It now seems that both these trends will change in the second half of 2017. Average selling prices are set to drop with the shipment of new category of lower priced metal-printing machines helping to promote new growth.

“For polymer 3D printing, growth is expected from select technologies as this side of the market continues to penetrate into the manufacturing market and away from just prototyping.”



HP wants to expand its Ripple Effect

raspberryrippleicecr_91970_16x9HP is to increase the number of its education vertical resellers involved in its ‘Ripple Effect’ grant scheme.

The scheme – which was launched earlier in the summer – gives resellers £20,000 to grant to schools who buy HP tech though them.

So far, Misco, Softcat, XMA and Academia have signed up with each reseller announced a winning school of their own separate competitions among school customers who had recently purchased HP hardware through them.

The four winners will receive a HP Learning Studio from their respective reseller. The £20,000 suite of HP tech includes a HP Sprout G2 – an immersive computing 3D PC – and a Dremel Idea Builder 3D40 – an education-focused 3D Printer.

The grant scheme will target all HP core education resellers in the UK&I  over the next three to five-years.

HP is targeting new education focussed resellers to help address a chronic challenge facing the vertical: the endemic STEM worker shortfall, currently estimated at 40,000 in the UK.

Most schools only have about £115 pounds per student per year to spend on technology.  HP said that some of its resellers have been screaming out for action and that is why it is investing.

Channel needs to share more, you buggers

toddlers-fightingHP Inc CEO Dion Weisler says that the channel must “build stronger muscles” in the “sharing” economy.

Talking to the assembled throngs at the HP Re-invent World Partner Forum in Chicago, Weisler said trends such as rapid urbanisation, a changing workforce and the accelerating pace of new stuff mean people are changing how they buy products and services. No kidding.

“The rate of change is happening at a staggering pace – the likes of which we’ve never seen before. Change equals opportunity, and there is disruptive change all around us. So how do we capture the opportunity together?”

Rapid urbanisation was important to the channel “because people and businesses are in smaller spaces with greater efficiency needs and are shifting from owning things to an on-demand, service-driven economy”.

The sharing economy, as personified by the likes of Uber and Airbnb, which provide shared access to goods and services, claiming it “is changing absolutely everything”.

“The channel and all of us need to build stronger muscles here,” he said. “It’s no longer about buying and selling boxes; it’s about improving end-user outcomes and having experience-centric solutions that provide the customer with what they want exactly when, where and how they need it.”

Whatever that means.

Weisler said businesses are at an “inflection point”, and channel partners can help vendors optimise their operations and their investments.

He added that the move from transactional to contractual is behind HP’s Device-as-a-Service offering, which saw improvements it announced during the event. Weisler said its stuff lets customers reduce costs, shift CapEx to OpEx and have the flexibility to scale as they need it.

Is that clear?

HP is now the bright star and HPE is the red-headed stepchild

Youre-adoptedWhen HP and HPE split, the smart money was on HPE cleaning up, while HP followed the death of the PC into oblivion.

However the latest figures show something strange has happened, and the hardware maker of expensive printer ink is doing better than its enterprise orientated evil twin.

HP third-quarter numbers saw revenue growth hit double digits and profits came in ahead of guidance. Meanwhile HPE has failed to meet expectations for four consecutive quarters. HP’s shares are up by almost a third and the latter’s down by nearly a fifth over the last year.

There really is no reason for this different. PC shipments are in the midst of a five-year slump, according to Gartner. Yet HP’s Personal Systems arm had a third straight quarter of double-digit revenue growth, with desktops returning to growth in the quarter.

CEO Dion Weisler said it reflected the reinvention of its product line in this area: “In calendar quarter two, we outgrew the PC market unit growth by 9.5 points year over year, remaining the number one global PC market share leader with 22.8 percent share.”

HP overall growth accelerated to 10 per cent year on year, compared with seven percent in its Q2, with growth achieved in both its Personal Systems and Print segments for a second consecutive quarter.

The printer market is also in the doldrums, but HP saw growth thanks to a 10 per cent hike in supplies sales, its Print arm grew sales six per cent year on year, and Weisler said HP Inc now has a 38.5 percent total print unit market share.

Weisler vowed that “profitable growth will continue to be our priority”, pointing out that its Personal System Group’s profits, margins and revenues all grew sequentially in Q3 despite the industry-wide component cost headwinds.

“We’ve been proactive with our ongoing productivity efforts, repricing actions and focus on product mix”, he said.

Weisler described Q3 an “outstanding quarter, showcasing strong execution of our strategy he added that the vendor is investing in “future categories”.

It had “raised the bar” in the premium segment with its new Spectre x2, adding that it had expanded its Omen gaming portfolio with a new virtual-reality backpack.

HP made its big entrance into the 3D print market last summer, and Weisler said the vendor has now amassed 45 resellers for the technology globally, as well as more than 20 Reference and Experience Centres. Its 3D print customers include Jaguar Land Rover, Flex and others in the automotive, pharmaceutical, government and education industries.

All up, it looks like HP is doing well.