Tag: HPE

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.

HPE and Mirantis lay off OpenStack developers

grandpa_simpson_yelling_at_cloudThe former maker of expensive printer ink HPE and Mirantis have laid off roughly 200 OpenStack developers in what is a swift kick in the open saucy project’s development.

For those that came in late, OpenStack is the open source project for cloud computing infrastructure which was supposed to be the next big thing for suppliers trying to create customer projects.

HPE is busy gutting itself so that it focuses on supply chain productivity, discretionary spending and efforts to reshape the workforce. OpenStack was not really that useful for that cunning plan.

The mid-October layoff included at least 65 people from HPE’s Stackato group, which is in the process of being sold to Micro Focus International’s SUSE. In total, given the changes at the Yehud center and across the whole organization at least 100 HPE OpenStack engineers have cleaned out their desks.

That would be suitably grim but Mirantis appears to have done something similar. Mirantis co-founder and chief marketing officer Boris Renski said that his outfit restructured following the acquisition of TCP Cloud.

This meant that Mirantis wound down a number of engineering investments that it didn’t feel were aligned with its new focus of delivering an operations-centric OpenStack distribution through a build-operate-transfer model, Reknski said.

Renski said about 100 OpenStack Developers were laid off and another hundred or so were moved about.

Staff which seemed to have been packing their bags were those involved in a deployment and management tool for OpenStack, and the Workloads team who were trying to build a PaaS product.

Renski pointed out that his outfit was not abandoning OpenStack or exiting OpenStack distribution business.

However, Stackalytics, a website that tracks OpenStack community contributions, shows that OpenStack interest seems to be declining. HPE and  Mirantis were important players to the project.

HPE unveils new channel scheme

HPE The former maker of expensive printer ink, HPE has taken the covers off its new channel programme.

The outfit’s new Flexible Capacity model for Microsoft Azure allows partners to bridge private and public cloud with a single pay-as-you-go unified billing consumption model.

HPE unveiled the Flexible Capacity option as part of the launch of a new HPE Microsoft Azure Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) stack for HPE’s DL380 hyperconverged system.

The HPE Microsoft Azure stack should be ready to go in mid-2017 and HPE Consulting for Azure Hybrid Cloud services are available now.

The stack provides customers with Flexible Capacity single pay-as-you-go bill for both on-premise HPE private cloud and Microsoft Azure public cloud.

HPE said the DL380 Azure stack, which will sit in the customer’s data center, can be deployed with HPE SecureData software – protecting data in both public and private clouds and HPE Operations Bridge analytics software.

Bad time to be flogging servers

titanic-life-preserverBeancounters at IDC have said that it is a jolly bad time to be trying to flog servers and the numbers are sinking so fast that it is unlikely that the spotty kid with the posh girlfriend will escape before Celine Dion starts to sing.

The latest server sales figures for Europe, Middle East and Africa show that branded servers are losing ground to Far Eastern ODMs.

IDC numbers showed revenues down 3.7 per cent to $3 billion despite. All this happened while there was a  modest 0.8 per cent increase in the number of boxes shifted, which means that prices have fallen too.

Eckhardt Fischer, research analyst at IDC, said contract manufacturers, some of whom have launched their own branded gear, are doing well and the  HPEs, Dells and Lenovos of the world are suffering.

“This is strongly driven by the continued expansion of original design manufacturers (ODMs) in EMEA, a trend that IDC predicts will continue as mega datacenters and larger enterprises begin to source their hardware directly.”

HPE is still top server seller with 35.4 per cent market share in the second quarter of 2016, up 0.4 per cent. However its year-on-year revenues fell 2.7 per cent.

Dell grew market share to 17.9 per cent and saw revenues creep up by 1.6 per cent.

However Biggish Blue suffered the worst with a 36.9 per cent slump in revenues and a market share which fell to 9.3 per cent. IDC said the fall could largely be blamed on refresh cycles for IBM legacy mainframes last year – this was big enough to hit overall numbers for all vendors.

Oddly the place to try and peddle servers is Russia and the Ukraine where the improved political situation led to increasing IT investment. But the Middle East and Africa saw a decline of 8.5 per cent in revenues because lower oil prices led to cuts in tech investment.

 

Brexit stuffed up HPE’s bottom line

logoFormer maker of expensive printer ink Hewlett Packard Enterprise has said that Brexit did have an impact on its bottom line.

The vendor said that there had been a slowdown in public sector spending following the referendum decision to exit the EU. HPE mentioned the slow down of public sector activity in its  latest results announcement but this was largely missed when HPE announced it was off-loading its software business in a spin merger with UK firm Micro Focus.

Speaking to analysts, HPE CEO Meg “Yahoo” Whitman said that Brexit was something that it had felt in its order books in the UK and across the continent.

“What we saw was actually a pause in purchasing in the UK. Certainly the UK public sector, but also the UK and then more broadly Europe which was, this was unexpected, a big change, let’s take a pause and decide what we want to do here. What I will say is that in the last couple of weeks we’re actually seeing orders pick up again,” she added.

But the result of Brexit and the shock to the UK economic system, particularly the value of the pound, has led to ongoing price scrutiny.

“We continue to also monitor the pricing, competitive pricing environment that we see and we adjust as necessary particularly in the channel. So the channel is where we serve SMB and that’s where our ability to sort of move the pricing in response to competition, we look at that actually every single week sometime multiple times a week,” added Whitman.

 

HPE spins and goes British

hp_enterprise_logoThe former maker of expensive printer ink HPE will spin off and merge its non-core software assets with Britain’s Micro Focus in a deal worth $8.8 billion.

The move is part of HPE Chief Executive Meg Whitman’s cunning plan to shift HPE’s strategy to a few key areas such as networking, storage and technology services since the company separated last year from computer and printer maker HP. It will also off-load the troubled software side of the business.

HPE acquired part of its software portfolio through the $10.3 billion purchase of Britain’s Autonomy in 2011. HP’s $11 billion purchase of Autonomy was supposed to form the central part of the US group’s move into software.

HP later wrote off three-quarters of the company’s value, accusing Autonomy executives of financial mismanagement.

Whitman said in a statement that HPE was taking another important step in achieving the vision of creating a faster-growing, higher-margin, stronger cash flow company well positioned for customers and for the future.

The deal with Micro Focus, a multinational software company based in Newbury was announced along with HPE’s latest quarterly earnings. In the third quarter, HPE reported net revenue of $12.2 billion, down 6 percent from $13.1 billion a year earlier.

The transaction is expected to be tax free to HP. Micro Focus will pay $2.5 billion in cash to HPE, while HPE shareholders will own 50.1 percent of the combined company that will operate under the name Micro Focus and be run by its executives. HP said it would pay $700 million in one-time costs related to the separation of the assets.

Other HPE assets that will be merged include software for application delivery management, big data, enterprise security, information management & governance and IT Operations management businesses.

Micro Focus has been bulking up on acquisitions to boost growth, and this would be its largest deal to date. Earlier this year, Micro Focus acquired U.S. firm Serena Software for $540 million.

Kevin Loosemore, executive chairman of Micro Focus, said that “the time is right for consolidation in the infrastructure software market and this proposed merger will create one of the leading players in this space.”

HPE is the latest firm looking to Britain for expansion opportunities after the United Kingdom voted to leave the European Union. Valuations of British companies have been relatively low given current exchange rates.

HPE brexits 220 staff

axeHPE is planning to remove 220 more jobs in the UK as part of its continuing culling of staff.

In a memo sent to staff, the rather long titled HPE UK and MEMA Vice President  of Infrastructure Technology Outsourcing (ITO) Maurice Mattholie says it is all part of its Workforce Management Programme which is the latest euphemism  for rampant stuff cuts.

However, the number of staff for the chop this quarter is not as bad as the last quarter when 500 HPE staff were asked to clean out their desks and exit the building with their belongings in a photocopy box.

Mattholie said HPE was talking to the UK Works Council and Trade Union representatives about the cuts.

“It is important to point out that we are fully committed to continuing to use redeployment and voluntary exits to manage WFM in the UK and Ireland…. It is expected that up to 220 positions within UK&I ITO will be impacted through WFM in Q4.

“Whilst I appreciate that this announcement may cause concern I am committed to providing regular updates to ensure that everyone is kept informed.

 

HPE wins illegal discounts case

spockICP has been told to pay up £1.95 million to HPE for  fraudulently claiming than £1.5m worth of discounts on its products.

Matthew Archer, ICP’s managing director, and the company itself were sued in a trial which took place in April. HPE claimed Archer and ICP were involved in fraud, conspiracy and inducement of breach of contract.

The case centred on an “abuse” of HPE’s partner programmes and discounts, with the defendants “fraudulently obtaining” over £1.5 million in discounts on HPE products, HPE successfully claimed.

Marc Waters, HPE’s interim managing director, said the firm is “satisfied” with the verdict.

“Grey marketing is a serious problem for the industry in terms of lost sales, margin erosion, poor customer experiences and reputational damage,” he said. “HPE has a well-established grey market avoidance programme and the outcome of this case clearly demonstrates that we will not hesitate to take court action to enforce our rights if required.

“We would also encourage anyone concerned about potential fraudulent activity to contact our brand protection team at and we will investigate as appropriate.”

Grey market activity is a long-standing issue in the channel and in recent months some vendors have stepped up their efforts to protect their brands. Headset vendor Plantronics settled a number of cases on the issue since the end of last year.

ICP said in a statement that it was disappointed and surprised by the outcome.

“We strongly deny any wrongdoing and must now consider all options available to us.”

IDC names the top storage types

storageThe former maker of expensive printer ink HPE is doing rather well in the storeage league tables.

Beancounters at IDC have looked at their quarterly enterprise storage numbers and found HPE is the top of a declining market.

The overall enterprise storage market was worth $8.2 billion in the first 2016 quarter, down seven per cent on a year ago.

HPE did share its top place with EMC but HPE nominally ahead at $1.42 billion, up 11 per cent year-on-year, with EMC making $1.35 billion n, down 11.8 per cent year-on-year.

Dell was third with $845.5 million, down 5.8 per cent year-on-year, and NetApp fourth with $645.5 million, down 15.6 per cent.

Thinks are set to change when Dell merges with EMC. If you add those two outfits figures together you end up with revenues of $2.27 billion, almost double HPE’s revenues for the quarter and more than three times NetApp’s revenues.

IDC’s Liz Conner, research manager, Storage Systems said: “Spending on server-based storage was up, spending on traditional external arrays continues to decline, while the nature of hyperscale business leads it to fluctuate heavily with that market segment seeing a heavy decline in 1Q16.”

 

HPE updates ProLiant Gen9 server portfolio

ML350_Gen9_rack_Bezel_FTThe outfit formally known as HP, HPE, has told its partners that it has updated its enterprise workhorse ProLiant Gen9 server portfolio.

HPE’s Gen9 ProLiant DL360 and DL380 servers will get Intel’s newest Broadwell processor as well as its new persistent memory technology, which allows the server’s memory to serve as a high-performance storage tier.

The new servers also include new management, security and storage capabilities aimed at helping customers tie on-premise data center infrastructures to the cloud for running mission-critical applications.

The refresh should help channel partners make their presence felt in the server market. Over the last six months HPE has flat out improving its visabily after being eclipsed by Cisco UCS and VCE .

The updated ProLiant DL360 and ProLiant DL380 servers are based on Intel’s new Xeon E5-2600 v4 processors and come with a significant boost in performance boost.

Persistent memory is another buzzword.  It brings together standard DRAM along with NAND flash memory and a micro controller with an integrated battery on a module that fits in a standard memory slot. This means it can deliver the performance levels you see with DRAM in storeage.

Blackstone to buy HPE’s Indian outsourcing business

India_flagPrivate equity outfit Blackstone is close to a deal to buying Hewlett Packard Enterprise’s controlling stake in Indian IT outsourcing services provider MphasiS.

The deal is worth about $940 million. HPE owns roughly 60.5 percent stake in MphasiS, and now wants out from the Indian outfit to shore up its capital.

Bids for MphasiS were submitted earlier this month and Blackstone is the front-runner for taking majority ownership of the mid-sized Indian IT services exporter.

Financial details of the possible deal were not immediately known. Based on MphasiS’ stock price on Thursday, the HPE stake in the Bengaluru-headquartered company is valued at about $940 million. The company’s total market value is about $1.6 billion.

MphasiS is a rival for Tata Consultancy Services and Infosys but is not likely to command a very high valuation as a major part of its business depends on subcontracting by HPE.

MphasiS used to generate half of its cash by providing services to HPE’s clients. This is now only 24 percent of the firm’s total revenue.

The MphasiS deal, if closed, will be one of the biggest M&A transactions in India’s $150 billion outsourcing sector and indicates that the outsourcing market may still have life in it.

MphasiS was formed in 2000 and six years later Electronics Data Systems Corp acquired a majority holding in the company. In 2008, EDS was acquired by Hewlett Packard, which resulted in the transfer of the shareholding to the computer maker.

HPE lets 1000 Enterprise Services staff “go”

INDUSTRY HP 1HPE is planning to tell 1,000 Enterprise Services staff to clean out their desks and pick up their P45s in the UK.

Most of the cuts are in the Infrastructure Technology Outsourcing (ITO) department where 780 people are at risk.

Staff in the UK were sent an “internal use only” memo on Friday afternoon revealing that hundreds of them could be out of work by the end of April. Of course if you send an email like that out someone is certain to leak it.

This is the second jobs warning at HPE. In January. HP told 166 ITO employees in England that they would be fired. Those at-risk workers are based in HP Enterprise’s Lytham site in Lancashire, and they provide infrastructure services for public-sector clients, including the UK government’s Department for Work & Pensions.

Today’s email to ITO staff is headlined “management update” and was written by Maurice Mattholie, ITO VP in UK and Ireland. It reads:

“I am writing to inform you of the Company’s proposal to implement a Workforce Management (WFM) programme in Q2 FY16. As announced by Meg, Hewlett Packard Enterprise needs to create a more efficient and accountable organisation to ensure a healthy long term sustainable business, with a market competitive cost structure, that will help the company transition to the new style of business.

It is important to point out that we are fully committed to continuing to use redeployment and voluntary exits to manage WFM in the UK and Ireland. It is expected that up to 780 positions within ITO will be impacted through WFM in Q2.

Whilst I appreciate that this announcement may cause concern I am committed to providing regular updates to ensure that everyone is kept informed. Thank you for your continued professionalism at this time of uncertainty.

This comes as HP Enterprise prepares to relocate all ITO roles in the UK to its offices in Cobalt, Newcastle, and Erskine in Glasgow. HPE, which employs about 240,000 people globally, has vowed to axe up to 30,000 workers worldwide over the next couple of years.”

Another  memo sent today to HPE UK staff, Jacqui Ferguson, senior VP for HP Enterprise Services in UK and Ireland, said that:

“In the UK, part of our strategy for Enterprise Services is to move more delivery services to both our Regional Delivery Centres (RDCs) in Erskine and Newcastle and to our Global Delivery Centres (GDCs). In aligning to this strategy in the UK, we have started consultation on our plan for the reduction of additional roles during Q2, with the UK trade unions and HPE employee representatives in the Enterprise Services Business Units.

We’d like to assure you that we remain committed to supporting the employability of our employees through a number of internal initiatives, including re­skilling, redeployment and support to obtain alternative employment, as appropriate.”

Needless to say that morale at HPE is gutted and the fact that the company is doing well now that it has off-loaded its profit sapping PC side means that few could understand why it is happening.

 

HP Enterprise, Intel and Aruba team up

grandpa_simpson_yelling_at_cloudFormer maker of expensive printer ink, HP Enterprise (HPE) has announced a new IoT and Aruba solutions package aimed at better cloud data collection, analysis and beacon management.

The move will help HP partners come up with IoT packages for big corporate clients.

Dubbed Edgeline IoT Systems, the new product line is a joint venture between HPE and Intel. Two devices, Systems 10 and 20 are available in rugged, mobile and rack-mounted versions and sit at the gateways at the network edge. Built around Microsoft’s Azure IoT Suite they will run Windows 10 IoT for industrial, logistics, transportation, healthcare, government and retail applications.

System EL10 is tailored to  entry-level deployments, EL20 comes with more features for higher compute capabilities and quick deployments. It’s can handle higher volumes. Both run on HPE’s Moonshot.

Aruba has released a cloud-based beacon management solution aimed at multivendor Wi-Fi networks.

The IoT Aruba Sensor crosses a  Wi-Fi client and BLE radio, so that users can remotely manage Aruba Beacons across wi-fi networks on a  Meridian cloud.

The new sensors are meant to help companies introduce location-based services.

HPE Edgeline IoT Systems are available now in the US and Aruba sensors are now available to order.