The New Hewlett Packard Enterprise: HP Eeek

November 30, 2016

i read “HPE Posts Mixed Q4 Results.” The main idea in the write up is that HPE squeezed out some profit despite a drop in year on year revenue. I noted one interesting phrase in the write up in the midst of the fancy dancing around the revenue erosion:

In September, HPE said it will “spin-merge” its non-core software assets with Micro Focus, a software company based in the UK, in a transaction worth around $8.8 billion. These moves will enable HPE, Whitman said, to be more nimble, play higher growth margins and have an enhanced financial profile.

I also like the confections worthy of the Food Channel expressed in this statement:

The company’s goal, she [Ms. Whitman, chief cook] said, is to be the industry’s leading provider of hybrid IT built on the secure, next-generation software-defined infrastructure that runs customers’ data centers today, bridges them to multi-cloud environments tomorrow, and powers of the emerging intelligent edge. [Emphasis added to highlight jargon]

Yes, intelligent edge. Yep, the edge of my desk is possibly intelligent? But I love the thought behind “intelligent edge.” Maybe I would tweak the phrase to say “intelligence edge.” But, hey, I am not a manager at an outfit with a history of board floundering, flubbed acquisitions, and selling off assets.

When I read the reports of the HPE financial results I had this thought:

I wonder if HPE’s senior management has properties with the bookings and potential of Dr. Michael Lynch’s DarkTrace.

Dr. Lynch is going one direction: up. HPE is going another: down.

I doubt if the senior management of HPE thinks much about Dr. Lynch’s business acumen. HPE thinks about finding a scapegoat for its own failure in the due diligence process, understanding the search and content processing market, and its management methods.

As I said, just a thought.

Stephen E Arnold, November 30, 2016

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