Hewlett-Packard is serious about succeeding in the enterprise space. After splitting itself into two firms – one firm in Printing and PC, the other in enterprise software – the two entities may focus on their respective markets. HP’s PC division has its work cut out for it. According to IDC, worldwide PC shipments fell 10.8 percent in the third quarter of this year.
HP’s enterprise unit also has work ahead. Expect big cost cuts and restructuring in the short-term. There were already reports in September that the Enterprise unit will shed 25,000 to 30,000 staff. After that, the company will have the difficult task of growing its server, software, and enterprise services business. An important development from Hewlett-Packard Enterprise (HPE) is its plans to redefine how it delivers public cloud. Customers manage their businesses using cloud environments. Infrastructural needs are often unique, so HP recognizes that there is a growing need for a hybrid, public cloud. A hybrid cloud just means managing both a public and private cloud. Sitting on top of that are SaaS (software as a service) applications. Customers also need a public cloud back-end.
HP is shutting down its public cloud on January 31, 2016. HPE will introduce its customers instead to HPE Helion OpenStack and HPE Helion Development Platform. Those still requiring public cloud will need to move to Amazon Web Services, where HPE Helion is supported (it is an open solution).
To bolster its offerings and carve a niche in business management, e-commerce, or data management, expect HPE to make acquisitions. Recall that the company acquired Aruba Networks in March. HP’s last massive purchase that ended with problems was the purchase of Autonomy in 2011.
HPE will do well if the companies it acquires are mid-ranged in size and bolsters the unit’s cloud-computing offering. HPE must entity appreciate the turnaround times required in innovating the data centre and network. Other growth areas for HPE are security, data, and mobility. In time, we will see how HPE develops those hot-growing areas.