HP: We Are Your Transformation Partner

LAS VEGAS: Welcome to 2.0. In just 5 months as we know it will cease to exist, replaced by Senior, for enterprises, and Junior, for PCs, printers, and the huddled masses (AKA SMBs), both companies to be generating in excess of $50 billion a year in revenues.

Before approximately 10,000 customers, partners and employees, HP Chairman, President & CEO Meg Whitman gave her last keynote at the company’s annual http://discover.hp.com/Discover Discover Conference. On November 1 the IT industry’s largest vendor will become two slightly smaller Fortune 50-size companies, and HP, (PCs and printers), and while it will trail IBM in the enterprise space, it will be way ahead of everybody else.

Except for some verbal stumbles and an awkward few minutes on the new HPE logo, Whitman’s keynote was an upbeat presentation on the company’s strengths, strategy and commitment to helping customers transform into the new world of IT. She said we’re living in an age of relentless, endless change that demands IT decisions that move at the speed of business, and customers need the best technology partner they can ever have. It’s a “new style of IT which is actually a new style of business powered by IT,” and HP is the best technology partner they can have.

She said we are living in an idea economy that is fast and disruptive, and that time to value is still your greatest enemy and your greatest opportunity. “The winners are those companies… who quickly use the power of IT to power the new world of ideas.” You have to pick a partner, “and make no mistake we are that partner.”

With that, she announced the launch of a new strategy involving four transformation areas: Transform to a hybrid infrastructure; Protect your digital enterprise; Empower the data-driven organization; and 4th, Enable workplace productivity. These represent our view of where the market is headed, she said, and the executive team (i.e. Mike Nefkens, EVP Enterprise Services, Antonio Neri, SVP Enterprise Group and Robert Youngjohns, EVP, HP Software) — and customer presentations and videos that followed — reinforced the transformation theme.

Nefkens set the framework for why transformation is so urgent, noting that by 2020 there will 7.6 billion people, 100 billion connected devices and 1 trillion apps.  He said 90% of enterprises believe their implementation of digital is lagging. The future is hybrid, and “you have to make leaps, not steps to hybrid.” Automation and orchestration is probably the most important step to take, he added.

The three consumption models customers use are buy, build or consume, and HP is happy to provide any and all of them, said Neri. He predicted that in 2-3 years, 30% of technology will be consumed in converged solutions.

The second transformation area is Protect. In today’s world it’s not a matter of it a breach will occur, but when,” said Nefkens. It can cost up to 10x more to fix something than protect it, so customers need to protect their most important assets.

Youngjohns provided some chilling evidence of how bad the situation is. It takes “over 200 days on average that an enterprise detects that an invader has gotten inside the walls.”

He said HP scans over 100 billion events every month and has 5,000 security professionals globally “We can help you see around corners.”

For the third transformation area, Empower, Nefkens talked about the need for getting a better handle on all your information: business; machine; and human. Big Data offers big opportunities, but also presents big challenges. “Big Data overpromises and underdelivers by 85-90%,” by which he meant how much data was wasted.

The fourth area, Enable, is where everything comes together, he said. “In the digital world user experience is key.” He referenced a quote he finds particularly appropriate: ‘Random acts of mobility will not deliver a significant shfit in productivity.’

For the most part, that was the first day’s opening remarks. The messages were kept relatively simple and consistent, there was a lot of compelling research to back up the messages, and if there was nothing of tremendous import, at least HP was clear. We are your best partner, we are still going to be big after the split,  and we intend to get bigger, so stick with us.

DISCLAIMER: HP looked after accommodations, and I’m still a shareholder.


Author: Steve Wexler

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