Tag: HPE

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.

HPE shifts away from lower margins

HPEHPE has outlined its plans for its full year 2018, indicating that it will shift its focus away from lower margin business and focus more on high margin solutions and services.

HPE’s lower margin business – particularly its tier one server business – has been blamed for hampering growth.

HPE said it expects to record revenue growth of five percent, but this prediction takes the tier one business out of the equation.

For its full year 2018, HPE said it expects to report “modest” revenue growth, again discounting the troubled tier-one server business.

Speaking at an analysts meeting, HPE CEO Meg Whitman outlined the five-year turnaround plan HPE is in the middle off, insisting that splitting the company into HPE and HP Inc was the right decision.

“I can tell you without a doubt separating the company in two was absolutely the right thing to do for our customers, our partners, our employees and of course our investors. We’ve seen that in the financial markets reactions.

“In 2012 we embarked on a five-year journey to turn this company around and create better value for shareholders, customers and partners.

“The first step was to diagnose the problems and build a solid foundation for a turnaround. 2013 was all about fixing and rebuilding the business. We improved operations, drove better cash flow and repaired our balance sheet

“In FY14 we focused on recover and expansion. We stabilised our revenue trajectory, we reignited innovation across HP and further strengthened our leadership in key areas. Fy15 was about accelerating that progress. We continued to target investments in higher-margin areas and saw the opportunity to accelerate our business in key acquisitions like Aruba.”

Whitman said that HPE is in the process of strengthening through four key factors: Organic investment, in areas such as HPE Synergy; investment in partnerships; acquisitions of the likes of Nimble and SimpliVity; and portfolio optimisation, which saw its services and software business spun out into separate organisations.

“Our partner ecosystem is the best in the industry and absolutely critical to our future. Partnerships our going to be critical and that’s why we launched Pathfinder, our venture investment and partnership programme. We use our expertise to identify the best emerging start-ups and then we curate their innovation within our innovation which helps us deliver cutting-edge solutions to our customers with results they cannot find anywhere else.”

HPE’s Nimble InfoSight predictive analytics nearly baked

Detail-from-Baking-oven-and-kneading-trough.-From-Charles-TIllustrations-of-useful-arts-manufactures-and-trades.-London-Society-for-Promoting-Christian-Knowledge-1858.Hewlett Packard Enterprise President Antonio Neri has told the world+dog that it is ready to ship its Nimble InfoSight predictive analytics offering on its high-end 3Par storage line.

It should be ready for partners within 90 days and give bring the cloud-based predictive analytics platform to 3Par. HPE is hoping that the move, which comes just months after closing the Nimble acquisition will shake up the storage market.

It will be the first time a major storage vendor will be able to predict storage failures and “proactively resolve them” across an end-to-end portfolio that spans the market from small/medium businesses to the enterprise.

InfoSight was the “crown jewels” of HPE’s $1 billion acquisition of Nimble, Neri said. The AI power of the platform provides HPE and its partners with a big competitive advantage against any and all competitors.

He added that it was proof HPE was delivering its strategy to make hybrid IT simple.

“The first thing partners are going to see is a consistent experience across Nimble and 3Par with AI, predictive analytics, and predictive maintenance across the entire storage footprint – all attached to our HPE Pointnext”, Neri said.

HPE to decimate staff again

legionnaires Hewlett Packard Enterprise is planning to cut 5,000 jobs or 10 percent of its workforce, as part of its HPE Next restructuring initiative.

HPE has already begun notifying executives impacted by the restructuring, with the company announcing this week the new management teams within each of the 11 regions.

HPE is officially not saying anything about the moves. The company has been restructuring for years no and it is surprising that there are still staff to decimate.

The HPE Next initiative is aimed at rearchitecting and simplifying the structure of the company with as much as $200 million to $300 million in cost savings in the current fiscal year. HPE is aiming for $1.5 billion in cost savings over a three-year period.

HPE CEO Meg Whitman told her unfortunate employees that the news of the restructuring was just media reports speculating about employee reductions.

“As you know, we have been aggressively moving forward with our HPE Next program, which is focused on positioning the company for the future. And, I can assure you that our employees are the heart of that strategy. We are looking at a variety of options as we think about the cost structure of the company, and they include both reductions and investments,” Whitman said in the memo.

However, Whitman said it is critical for the company to put “the right resources behind areas that will drive our profitable growth, while rebalancing our cost structure in others”.

Whitman said HPE is committed to “transparency” and will communicate decisions as soon as they are made.

As part of the next restructuring, HPE has already announced that it is flattening its channel organization eliminating layers of management by combining its channels and alliances groups under a single organization headed by Global Channel Chief Denzil Samuels.

The restructuring also includes a new North America management team led by North America Sales Chief Dan Belanger, CRN reported Friday.

Among the top channel executives leaving HPE as a result of the restructuring are Scott Dunsire, an 11-year HPE veteran widely credited with making broad channel improvements and improving co-selling engagement between partners and the HPE direct sales force and Mike Parrottino, a 30-year HPE veteran who was a passionate advocate for partners and the SMB route to market.
Both Dunsire and Parrottino dramatically increased the percentage of sales going through the channel, initiating a mandate to drive 100 percent of SMB sales through partners.

HPE signs on three UK distributors for its Nimble Storage.

INDUSTRY HP 1HPE, which wrote a cheque for Nimble Storage earlier this year, has hired three UK distributors to push it.

Entry-level Nimble products were recently added to HPE’s price list and the vendor has now confirmed its distribution line-up.

HPE channel boss Mark Armstrong said: “As you may be aware, HPE announced that selected entry-level Nimble storage platforms were added to the HPE price list and made available to resellers via the existing HPE distributors in the UK.

“Nimble distributors in the UK are Arrow ECS, Azlan and Ingram Micro. HPE distributors for storage are Azlan, Ingram Micro and Westcoast.

“The remaining Nimble storage platforms continue to be available from the previously appointed Nimble distributors until 1 November 2017, when the full Nimble portfolio joins the HPE price list.”

Westcoast was the first distributor in the UK to ship a Nimble Storage order from the HPE price list.

“This product needs to be seen to be believed and the channel is going to love InfoSight, the predictive analysis tool it comes with.”

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.

HPE will merge acquisitions initiatives by November

HPEHPE has confirmed it will merge its recent acquisitions’ channel initiatives into its own Partner Ready Programme on 1 November.

Over the last year HPE has been buying like a mad thing, and snapped up Simplivity, Nimble Storage, SGI, Cloud Cruiser and Niara. These outfits conducted the majority of their business through the channel prior to acquisition and HPE said that the goal was to get them all working under the Partner Ready Programme.

Speaking to the assorted throngs at HPE’s Global Partner Summit yesterday, Jesse Chavez, VP of worldwide channel strategy and operations, said by 1 November Nimble, Cloud Cruiser and Simplivity will be fully migrated to the HPE Partner Ready Program.

Niara and SGI have already nearly moved to Partner Ready. Niara will be available on Partner Ready from August, while SGI is already underway, with products starting to appear in July.

Chavez said that SGI was a special case as it did not do much of its business through the channel. Other acquisitions did all their business through the channel, he said, SGI’s rate only managed about a fifth. It was something that HPE wanted to change.

There will also be no room for parallel partner programmes with these new acquisitions, which contrasts with the company’s strategy when it bought Aruba Networks two years ago.

Dell EMC takes over from HPE as server king

michael-dell-2Beancounters at Gartner have added up some numbers and divided them by their shoe size and reached the conclusion that Dell EMC has taken over from HPE as the king of the server market.

HPE still makes more money holding 24.1 percent of the market share – down from 25.2 percent in the first quarter of 2016. But it would seem that Dell EMC is catching up in that  too, with its market share increasing by 4.8 percent to over the same period to take 19 per cent market share in the latest quarter.

Gartner research director Adrian O’Connell said that the first quarter of the year tends to be relatively strong for Dell, but the acquisition of EMC was proving positive for the server business at the moment.

“HPE’s size means it is subject to the moves of the wider market more than some other vendors. Weakness in the business segment and sourcing changes in the service provider space have reduced its revenue significantly.”

Worldwide server sales continue to decline with the growth of cloud computing, Gartner’s figures show. Companies are also opting to move to hyperscale infrastructures, buying lower cost servers from ODMs too, meaning total worldwide server revenue declined 4.5 per cent year-on-year, with shipments falling by 4.2 percent.

EMEA was impacted more than the rest of the world, with the region’s revenues reducing by 12.2 percent year-on-year to $2.8 billion in the first quarter of 2017 and shipments totaling 503,000 – a reduction of eight percent year-on-year.

IBM and Lenovo most felt the squeeze, with revenues reducing by 34 percent year-on-year and 16 percent year-on-year respectively. Lenovo’s shipments also shrank by 26 percent.

 

HPE can do nine new things

HPE-office-logoHewlett Packard Enterprise (HPE) has told its partners that it can now provide nine new services.

Speaking to the assorted throngs during Discover 2017 in Las Vegas, HPE said that the programme’s new additions centre on hybrid IT, data and analytics and HPE’s intelligent edge offerings.

New competencies joining the group established in September include cloud automation, software-defined infrastructure, high-performance computing and edge and mobile networking.

HPE chief channel office Denzil Samuels said: “We are going to work on our partner programme to align compensation benefits to the partners that are delivering critical business outcomes for our customers.

“This approach we’re taking is going to recognise partners who are building capabilities and practices in solution areas that are rapidly growing and critical to our joint customers’ needs and future success. We call these capabilities competencies, and our overall partner compensation will now take those investments into account.”

HPE’s Partner Ready programme has been spruced up with services for the data and analytics infrastructure, object storage, business continuity and data protection, workplace experience and Industrial Internet of Things.

The exec noted that since launching competencies for its Partner Ready partner programme in September, HPE has seen progress from “50 or so” partners. Samuels added that HPE will provide incentives to help accelerate adoption.

HPE added a Silver datacentre specialisation to cut partner training time from nine days to five days and drives sales across HPE’s product portfolio, namely Arista, SimpliVity and Nimble Storage.

He also announced the HPE Partner Ready Digital Marketing Programme, which includes channel marketing content, campaigns, education, tools and other resources.

HPE blames Brits for poor performance

article-2521076-19FD5A3C00000578-456_634x423Hewlett Packard Enterprise has singled out the UK for its weak performance in Europe after its revenue dropped in the second quarter.

HPE reported a global revenue of $7.4 billion, down 13 percent on the same period last year.

HPE CFO Tim Stonesifer said the UK was chiefly to blame for difficulties in Europe.

“Revenue in Europe continue to be weak, driven by the UK, although strong results in Germany helped the region,” he said.

HPE suffered because of a mystery tier-one customer in its server business as a major contributor to the revenue drop, as it did when it published its first quarter results earlier this year.

CEO Meg Whitman said that if this customer is taken out of the equation, HPE would have actually reported a revenue increase of one per cent for second quarter.

Whitman said that the customer was a significant enough size to dramatically affect revenue over the coming months.

Forbes speculated that the customer could be one of the big public cloud providers Microsoft, Google, or Amazon Web Services.

HPE’s server revenue declined 14 percent year on year in the quarter to just under $3 billion, but taking the tier-one customer out of the equation brings the decline to just one percent.

HPE was one of a number of vendors to hike prices in the UK specifically after the EU Referendum.

The company was surprised that jacking up the price of their products harmed the bottom line so much. Who would have thought that raising prices in a time of uncertainty would not have made more money?

Because of the difficultly regarding pricing and commodities, HPE will look to make savings of between $200 million and $300 million in the second half of this year – as it integrates Nimble and SimpliVity and adjusts for life after the spin mergers of its software and services groups.

HPE said it was taking significant steps to optimise the cost structure of the future HPE. It is also looking to trim an incremental $200 million to $300 million in cost savings in just the second half of this year, HPE said.

These savings will be a combination of tight control over spending and simplifying the organisation through de-layering and spend-control actions as it becomes a smaller, more nimble company, HPE said.

 

HPE channel boss spills the beans

C--zInpVYAAfVBaThe recently appointed global channel chief at HPE said that he is working out a cunning plan to ensure partners navigate through an era of “digital transformation”.

Denzil Samuels joined HPE from GE Digital. He said that “digital transformation” is an industrial revolution there are lots of technology shifts going on at the edge.

Samuels thinks that HPE has the best plan, portfolio and partner programme to take advantage of the change that is going on in the world.

However, he now wants to take the plan to the next level which means announcing pay at net, which lets HPE partners get the highest level of back-end rebates in the industry. It is also announcing the inclusion and development of competencies.

HPE already has product certifications but now Samuels wants to introduce “competencies”, because knowing how to use the  product portfolio and putting it into an outcome for the customer is the way “to drive success”.

To do that you need to have the competencies, the industrial or vertical know how and the horizontal know how, Samuels said.

HPE had a partner programme which encourages different types of partner categories, different geographies and countries, different verticals, different horizontal solutions and different business models.

Samuels said that one size does not fit all but embraces the dynamic nature of the market but taking the very complicated but making it simple.

HPE is planning a new “solution” to do all that already but it is still on the drawing board. The plan is to do a cautioned roll out of some of it over the next year to 18 months.

He said that HPE did not want to disrupt what is already 70 percent of its business, which comes from the channel.

Carbon Black poaches channel bloke from HPE

milesripponclearswift-370x229Miles Rippon has been named as Carbon Black’s EMEA channel director and has been ordered to sort out the outfit ‘s European channel business following its strategic distribution agreement with Arrow.

Apparently, Rippon will be building up Carbon Black’s relationships with channel partners, expanding its reach and increasing enterprise sales through the region. To do this he will have to push Arrow and Carbon Black’s joint offerings in cyber security.
In a statement, Rippon pointed out that traditional AV products were going no-where because they could not deliver the improvements needed to protect organisations against modern threats.

While there is a huge demand from customers for a leading NGAV solution, by combining Cb Defense with Arrow’s vast network, Carbon Black is greatly increasing its global footprint, providing high margins for resellers and continuing to stay at the cutting edge keeping businesses protected from cyberattacks, he said.

There is a huge opportunity for Carbon Black to work with its channel partners to grow its market share this year and Rippon said was happy to be behind the wheel.

Rippon joins Carbon Black from HPE’s enterprise security products division, where he served as EMEA channel and alliance director. Prior to that, he has held roles as VP of global channels for Clearswift and VP of EMEA channels for RSA Security.

Mark Reeves, VP for EMEA sales at Carbon Black, said: “Miles is an EMEA channel expert with extensive experience and hands-on sales territory and sales management skills. He has maintained strong sales performance records in developed and emerging territories. With the recent launch of our streaming prevention technology and the appointment of Arrow, we are now well set up to service the channel and build momentum in the market.”

Nutanix and HPE are not chums

9-coverHPE has made clear in no uncertain terms that it is not partners with Nutanix, after the latter opened up its Enterprise Cloud Platform software to allow users to install it on HPE ProLiant and Cisco UCS B-series servers.

Nutanix made the announcement late last week, signalling a move away from its traditional all-in-one approach.

HPE is cross at the move and issued a retaliatory blog post slamming the idea of using Nutanix software in favour of a purpose-built HPE platform.

In the post, titled “Don’t be misled… HPE and Nutanix are not partners”, the clearly irritated former maker of printer ink told customers “considering running hyperconverged infrastructure (HCI) on an HPE server, you should consider the HPE HCI offerings”.

HPE’s VP of marketing, Paul Miller, said: “Landing Nutanix software on HPE hardware without any type of OEM or support agreement is going to cause real issues in the real world – in the absence of a real support agreement.”

Nutanix previously made its software available as part of a hardware all-in-one package, Nutanix said it will make it compatible with rivals’ servers so customers can choose its own offering over those from competitors like HPE and Cisco.

HPE’s Miller warned that in the case of an outage, HPE could provide immediate assistance so long as you’re running its own software, but for those customers taking on third-party offerings, it is unable to provide the same levels of service.

HPE said it is not surprised by the idea that a company would want to run its software on HPE ProLiant, it appears Nutanix has jumped the gun a little by forgetting to inform the hardware provider of its cunning plan first.

HPE’s recently bought hyperconvergence specialist SimpliVity for $650 million, a direct competitor to Nutanix so it makes sense that HPE would not be keen to have customers from turning to a competitor.

Nutanix has said its Enterprise Cloud Platform software will be available for HPE’s portfolio by the end of the year.

HPE gets more Nimble

Funny-Surfing-22Hewlett Packard Enterprise has written a $1 billion in cash cheque to buy Nimble Storage which makes predictive all-flash and hybrid-flash storage systems.

HPE claims it will mean that it can offer a full range of flash storage systems for different customer bands. HPE’s hopes the move will see of rivals from Dell EMC, NetApp and Pure Storage.

IDC reckons the flash storage market topped reached $15 billion in 2016, and will grow to almost $20 billion by 2020 with nearly 17 percent compound annual growth rate.

Nimble’s flash systems are aimed at SMEs and HPE said the acquisition is complementary to its midrange to high-end 3PAR flash storage systems and its affordable MSA products.

Meg Whitman, HPE president and CEO, in a statement that Nimble Storage’s portfolio complements and strengthens HPE’s 3PAR products in the high-growth flash storage market and will help it deliver on its vision of making Hybrid IT simple for our customers.

“This acquisition is exactly aligned with the strategy and capital allocation approach we’ve laid out. We remain focused on high-growth and higher-margin segments of the market.”

HPE wants Nimble’s InfoSight Predictive Analytics platform to be used across its storage products portfolio. That technology helps IT managers detect and resolve IT infrastructure issues, reducing the amount of time spent on support activities.

Combining the HPE and Nimble product portfolios would allow customers to more easily move and replicate data across hybrid flash and all-flash storage to meet IT demands, more easily manage storage volumes and data compaction to reduce capacity costs, and integrate data protection capabilities with data encryption, replication and integration capabilities provided by third-party applications, Whiteman said.

Antonio Neri, executive vice president and general manager of HPE’s Enterprise Group wrote in the company’s bog that Nimble’s entry to midrange predictive flash storage solutions, coupled with InfoSight, its leading predictive analytics technology, will strengthen HPE’s flash storage portfolio by expanding market reach and enabling a transformed, analytics-based customer experience.

HP wants to expand into hybrid cloud platforms

cloudThe bit of HP which no longer makes expensive printer ink, Hewlett Packard Enterprise, has written a $650 million cheque for the privately held cloud software company SimpliVity.

The move is part of a cunning plan to expand its operations in the fast-growing market for hybrid cloud platforms.

For those who came in late, hybrid cloud platforms run applications that are based partly on the client’s private servers and partly on public cloud data centers. They are proving rather useful for resellers peddling cloud platforms so HPE jumping on the bandwagon will give them more sales options.

The deal is expected to add to Hewlett Packard Enterprise’s earnings in the first fiscal year after it is completed, the company said.

SimpliVity was founded in 2009 and had raised $276 million in four funding rounds.