Monday 2 November 2015

The Morning Download: Hewlett Packard Enterprise Debuts as Cloud Reshapes IT

The separation of the old Hewlett-Packard Co.HPQ +12.58% into two smaller, and yet somehow still massive, tech companies is now complete. Hewlett Packard Enterprise Co., under the leadership of Meg Whitman, starts trading today. The higher margin printer company, led by Dion Weisler, now known as HP Inc., “no longer will underwrite the corporate information technology sold by Ms. Whitman’s new company,” the WSJ’s Robert McMillan writes. HP Inc. will have the luxury of plowing more money into R&D.

The rise of cloud computing challenges the new enterprise company. It will have to “attract corporate buyers, who increasingly look to cloud-computing technology offered by the likes of Amazon.com Inc AMZN -0.09%. and Microsoft Corp.MSFT +1.14% Last week, H-P abandoned a five-year effort to build a competitor to Amazon’s AWS cloud service, leaving HPE with nothing to offer in that area,” Mr. McMillan writes.

Toni Sacconaghi, an analyst with Sanford C. Bernstein & Co., tells the WSJ that “a big part of the market is moving in a single direction, and H-P arguably doesn’t have offerings to cater to those [customers] … Traditional vendors have challenges in terms of that migration, but you could argue that others have at least taken more visible, positive steps in that direction.” International Business Machines IBM -0.07% Corp. and Oracle Corp.ORCL +1.80% have articulated clear goals for shifting to a cloud-based business model and taken steps in the direction. Oracle co-CEO Mark Hurd says the company has rebuilt almost 100% of its applications for the cloud. Both companies have embraced an elaborate hybrid approach to the cloud. H-P cloud guru Bill Hilf told the WSJ that the majority of corporate spending “would continue to be made on systems in corporate data centers, and that H-P would work with companies such as Amazon and Microsoft to sell cloud services to customers that demand them.”

Read More : http://blogs.wsj.com/cio/2015/11/02/the-morning-download-hewlett-packard-enterprise-debuts-as-cloud-reshapes-it/

No comments:

Post a Comment