Company Spotlight: HPE

Hewlett Packard Enterprise (HPE) announced on August 15, 2024, that it has entered into a definitive agreement to acquire Morpheus Data. Morpheus Data is a pioneer in software for hybrid cloud management and platform operations.

HPE Company Background

Hewlett Packard Enterprise is a prominent American multinational company specializing in enterprise IT solutions. HPE emerged from the split of the original Hewlett-Packard Company founded by William R. Hewlett and David Packard in a garage in Palo Alto, California. This location is often regarded as the birthplace of Silicon Valley due to its historical significance in the tech industry.

HPE operates within the broader information technology (IT) industry, encompassing hardware, software, and services designed for business environments. The company has a robust portfolio that includes:

Enterprise Group: Infrastructure products supporting IT systems.
Enterprise Services: Consultation and support services.
Software: Tools for automating IT operations and business analytics.
Financial Services: Investment solutions and IT consumption models.
Corporate Investments: Ventures like HP Labs focusing on innovation.

As of 2023, HPE reported an annual revenue of approximately $29.7 billion, reflecting a nearly 6% year-over-year growth. The company’s headquarters is in Houston, Texas. Its CEO Antonio Neri has driven HPE's vision towards hybrid IT solutions and data management.

HPE Business Description

HPE is a leading global provider of enterprise information technology solutions. It focuses on a wide range of services and products that help organizations manage their IT infrastructure effectively. HPE became a separate entity from HP Inc. In 2015. It has since carved out a significant niche in the IT industry, particularly in areas such as cloud computing, data storage, networking, and high-performance computing.

History and Founding

HPE traces its roots back to the founding of Hewlett-Packard Company (HP) in 1939 by William R. Hewlett and David Packard. The company initially focused on electronic test equipment and later expanded into computers and printers. In 2015, HP underwent a major restructuring, resulting in the split into two companies. HP Inc. focuses on personal computers and printers while Hewlett Packard Enterprise concentrates on enterprise products and services. This strategic separation allowed HPE to focus on its core competencies in enterprise solutions.

Since its inception, HPE has undergone several significant changes, including the spin-off of its Enterprise Services business. It also merged its software division with Micro Focus. Under the leadership of CEO Antonio Neri, who took over in 2018, HPE has emphasized hybrid cloud solutions and digital transformation for businesses.

Mission and Values

HPE's mission is to empower customers to accelerate their digital transformation. It provides innovative technology solutions that connect, protect, analyze, and act on data from edge to cloud. The company values innovation, sustainability, customer-centricity, and collaboration. HPE aims to create a more sustainable future through responsible business practices and by enabling customers to optimize their IT investments.

Top Products and Services

HPE offers a diverse portfolio of products and services designed to meet the needs of modern enterprises:

HPE GreenLake: An as-a-service offering that provides cloud-like flexibility for on-premises infrastructure, allowing businesses to consume IT resources on a pay-per-use basis.
HPE ProLiant Servers: A line of servers optimized for hybrid environments that deliver high performance for various workloads.
HPE Alletra: A cloud-native storage solution that simplifies data management across various environments.
HPE Aruba Networking: A comprehensive suite of networking solutions that includes wired and wireless products designed for secure connectivity.
HPE Cray Supercomputers: High-performance computing systems that enable organizations to tackle complex workloads and analytics.
HPE Ezmeral: An enterprise-grade container platform that facilitates the deployment of Kubernetes at scale.
HPE Pointnext Services: Consulting and support services that help organizations optimize their IT operations and accelerate transformation initiatives.

In addition to these offerings, HPE provides financial services to help customers manage their IT investments effectively. The company continues to innovate within the realms of artificial intelligence (AI), machine learning (ML), and edge computing. It positions itself as a key player in the rapidly evolving technology landscape.

What does HPE do for enterprise users?

Hewlett Packard Enterprise provides a comprehensive suite of solutions designed specifically for enterprise users, focusing on transforming IT infrastructure from edge to cloud. HPE's services encompass everything from planning and implementation to ongoing management, enabling businesses to optimize their operations and maximize IT investments.

Through offerings like HPE GreenLake, enterprises can access cloud-like services on traditional infrastructures, allowing them to consume IT resources in a flexible, pay-per-use model. This approach simplifies digital transformation efforts by integrating cost management, compliance tools, and centralized control over various IT assets. This helps organizations streamline operations and enhance efficiency.

In addition to HPE GreenLake, the company also offers a range of products tailored to meet diverse enterprise needs. These include HPE ProLiant servers, HPE Alletra storage, and HPE Aruba networking solutions. These products support high-performance computing, data analytics, and AI workloads across hybrid environments.

HPE also emphasizes security and compliance through services like HPE Managed Security and HPE Managed IT Compliance. These services ensure that enterprises can protect their data while navigating increasingly complex regulatory landscapes.

Targeted Customers

HPE primarily targets large and medium-sized enterprises across various industries, including finance, healthcare, manufacturing, telecommunications, and government. Its customer base consists of IT decision-makers. These include Chief Information Officers (CIOs), Chief Technology Officers (CTOs), and other executives responsible for digital transformation and IT infrastructure management.

The demographics of HPE's primary customers typically include organizations that require robust, scalable solutions for data management, networking, and cloud services. These customers often seek innovative technologies to enhance operational efficiency, improve data security, and support their digital transformation initiatives.

To reach its target audience effectively, HPE employs a multifaceted marketing strategy that combines both online and offline tactics. The company utilizes platforms like LinkedIn for B2B marketing campaigns aimed at C-level executives, focusing on thought leadership and engagement through content-driven initiatives.

HPE also engages in social media advertising on platforms such as Facebook and Twitter to increase brand awareness and connect with potential customers. Additionally, HPE employs search engine optimization (SEO) strategies to enhance its online visibility and attract organic traffic to its website.

By leveraging these strategies, HPE aims to establish meaningful relationships with its customers. Also, it promotes its comprehensive suite of enterprise solutions tailored to meet the evolving needs of businesses in a competitive landscape.

Current HPE Competitors

HPE faces competition from several major players in the enterprise IT sector. Its primary competitors include Dell Technologies, IBM, Cisco Systems, Lenovo, and Amazon Web Services (AWS). Each of these companies offers a range of products and services that overlap with HPE’s offerings. In particular, similar offerings are in areas such as cloud computing, high-performance computing (HPC), and networking solutions.

HPE's competitive advantages lie in its strong heritage in supercomputing. Other advantages are in its innovative HPE GreenLake platform for hybrid cloud services and its focus on sustainability through advanced cooling technologies. Additionally, HPE has established relationships with key entities like NASA and the Department of Energy, which bolster its reputation and credibility in managing large-scale applications.

Despite these advantages, HPE faces challenges. These are intense competition leading to price pressures and the need to continuously innovate to keep pace with rapidly evolving technology trends. The company has reported a revenue of approximately $29.7 billion. It is among the top players in the global server market with a share of 15-20%.

However, it competes closely with Dell and IBM, which also hold substantial market shares. HPE's current market position reflects a strong emphasis on AI and HPC solutions, claiming leadership through its Cray supercomputers and partnerships with companies like Nvidia. While HPE asserts that it is not lagging behind competitors in the AI race, it needs to maintain and enhance its standing amidst fierce competition.

Read also: Hybrid Cloud Management 101