http://seekingalpha.com/article/4052257-slow-death-hewlett-packard-enterprise
8 replies (most recent on top)
Not quite. Helion is still around providing private cloud.
HPE had to shutdown their entire cloud business for both public and private clouds period because they couldn't compete with Amazon, Google, and Microsoft.
HP/HPE was always shooting itself in the foot. Pricing out a server was ridiculous... the markup was insane, even for internal support. I could get cloud space on AWS, Azure or any place else for a tenth of what HP/HPE wanted to charge. They seemed to believe that the brand name was worth the premium, and are always surprised when customers aren't falling all over themselves buying their products or services (Remember the TouchPad? Expected to do as well as the iPad, but without any of the subsidization Apple got from cell phone companies and without delivering anything more for the SAME PRICE as an iPad?).
Customers know what to expect to pay for cloud services... gone are the days when corporations wrote blank checks for IT services over a golf game between board members. HPE has spent the last three years trying to substitute unskilled, inexperienced bodies on contracts, and they keep getting burned when they don't deliver. Maybe if they had spent some time making Helios the loss leader to sell services of developers and cloud admins (real, experienced ones), they'd have gotten a foot in the door and been able to compete - but no, Meg and her buddies do not understand the game, at all. As Nefkens revealed to the world, they think employees are not talent, or assets, but simply "inventory" to be rotated out when it gets old and expensive. For a services company, this is basically the most stupid thought process one could possess for somebody who is supposed to be charting a road map to build business and create policies for growth and leadership.
As long as Whitman, Lawrie, and Nefkens run things in these companies, they are doomed to continue their downward spiral. There is no vision, just playing three card monte for the stock market analysts to keep the price propped up before they sell it all off and run away to loot another legendary company.
"I wonder if HPE would be more competitive if it still had it's private cloud? "
Kind of funny that you think that HP was running a private cloud, they thought they were running a public cloud except that no customers saw it that way.
"I wonder if HPE would be more competitive if it still had it's private cloud? IE, running a private cloud can teach you what counts in running a private cloud."
The only folks left at HPE who were involved in the public cloud initiative are exactly the ones that you would not want to have running your private cloud and there aren't even many of them left.
The article states that cloud is impacting HPE's profitability.
I wonder if HPE would be more competitive if it still had it's private cloud? IE, running a private cloud can teach you what counts in running a private cloud.
What timeframe are you thinking of a buyout? The company is still in the black but after this year of server decline it might not.
Yes, HPE is in serious trouble as the article stated the largest customers are cloud service providers because the mainstream customers are leveraging parts of their infrastructure to Amazon, Google and Microsoft and other large hosting companies. Lastly, the cloud service providers build their own proprietary hardware using manufacturers in China who build the same servers and storage for HPE and other legacy technology companies. Therefore, cloud service providers can design their own hardware and have third party manufacturers build them at half the cost without the markup.
HPE will end up being acquired by a Chinese company like Lenovo and the endgame has already ended.