INFRA
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Can intelligent edge services rescue HPE’s sinking share prices?
Hewlett Packard Enterprise Co.’s poor second-quarter earnings report and dwindling stock prices might frustrate the company’s execs, but they ought not surprise them.
“Essentially, it’s facing what most legacy hardware companies are facing,” Dave Vellante (@dvellante) (pictured, left) told John Furrier (@furrier) (pictured, right), as the co-hosts of theCUBE, SiliconANGLE Media’s mobile live streaming studio, examined HPE’s market struggles during HPE Discover US in Las Vegas, Nevada.
Clearly, it is boom time for cloud and software, so hardware companies scrounge together very nichey and perhaps awkward markets for their wares, Vellante explained.
“[Hardware companies are] scrambling to what we call true private cloud, which is essentially hybrid IT trying to mimic the public cloud,” he said.
HPE is comparable to Dell EMC in its hardware roots and its recent efforts at hybrid branding. Both must manage their vast size, which could hinder agility and growth, according to Furrier.
“HPE has a strategy of a collection of small, nimble, agile business units. Dell EMC, for instance, has a strategy of being big and using leverage with supply chain and what-not,” he said. Dell EMC may not be king in software, but it has asserted that it has more to offer in that department than HPE.
Every cloud has a bare metal lining?
HPE appears, however, to be listening to customers, offering platforms via Application Programming Interfaces, which are essentially programmable infrastructure, Vellante explained.
HPE is also doubling down on services, which may make up for its lack of software, especially if it picks up steam in Internet of Things’ so-called “intelligent edge,” Furrier and Vellante stated.
“I think this is something that not a lot of people on Wall Street are kind of grokking at this point — but the value shift from centralized IT to a distributed kind of network effect is a really interesting play,” Furrier concluded.
Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s independent editorial coverage of HPE Discover US 2017.
Photo: SiliconANGLE
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