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Meg Whitman Outlines What's Next for HPE

By Sean Michael Kerner (Send Email)
Posted September 6, 2017


Hewlett Packard Enterprise (HPE) reported third quarter fiscal 2017 (3Q17) financial results on Sept. 5, showing some positive trends for the company's server business.

The 3Q17 results are particularly noteworthy in that they mark the last quarter in which HPE's software HPE business is still part of the mix. HPE has divested its software portfolio in what it calls a "spin-merge" with MicroFocus.

For the quarter, HPE reported revenue of $8.2 billion, for a three percent year-over-year gain. HPE's Enterprise Group revenue, which includes server, storage, networking and technology services, came in at $6.8 billion for the quarter. Software revenue was reported at $718 million.

During her company's earnings call, HPE CEO Meg Whitman said  core server revenue was up 13 percent year-over-year, and HPE expects to gain share in calendar Q2. One area of particularly strong server growth for HPE is with the Synergy platform that was first announced in 2015.

"Since its launch late last year, Synergy is experiencing very strong momentum with over 600 customers to date," Whitman said. "As a side benefit, we are also seeing an uptick in blade sales as customers move on to the path to become Synergy ready."

The HPE Synergy effort is a composable infrastructure initiative that enables software-defined compute, networking, software and storage. ServerWatch recently reviewed the HPE Synergy platform as part of a tour at the company's Houston campus.

Whitman also highlighted momentum for HPE's server security efforts, including the new silicon root of trust approach that was first announced in June 2017.

"HPE is the only company that embeds proprietary silicon-based security into its industry standard servers," Whitman said. "This approach addresses firmware attacks, which are one of the biggest threats facing enterprises and governments today. "

HPE Next

Looking forward, HPE's future is one in which software is no longer a core business. Whitman said the spin-off and merger of HPE's software business with Micro Focus delivered approximately $9 billion in value, and she is confident this was a great move for both Micro Focus and HPE.

"Now as a smaller organization with fewer lines of business and clear strategic priorities, we have the opportunity to create an internal structure and operating model that is simpler, nimbler and faster," Whitman said.

Whitman also took time during the financial analyst call to answer a question about her own future with HPE. Whitman had been widely reported as being a top contender for the CEO role at ride-sharing company Uber. She said that while Uber was an interesting opportunity that would have been similar to her previous role at eBay, she has no intention of leaving HPE.

"I have dedicated the last six years of my life to this company and there is more work to do, and I am here to help make this company successful, and I am excited about the new strategy," Whitman said. "So, lots more work to do, and I actually am not going anywhere.

Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist.

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