HPE: “Nowhere Left To Hide”
Jun08

HPE: “Nowhere Left To Hide”

Hewlett Packard Enterprise is in Sin City this week, holding its annual customer and partner event (HPE Discover 2017), accompanied with the usual flurry of product announcements and preceded by another troubling financial report. HPE’s Meg Whitman, President and Chief Executive Officer, believes the company is heading for an upswing, “accelerating out of the turnaround”, according to a recent interview. “I can feel it,” she said. “It is just smarter, easier, simpler. You cannot underestimate the accountability. There is nowhere left to hide at this company. I see a perfect place. There is nowhere left for partners to hide. There is no place for HPE employees to hide. It just makes things far easier and, frankly, more fun because you can get stuff done faster.” Faster, maybe, but better? HPE’s commodity hardware businesses and primary revenue generators — servers, storage, and to a lesser extent, networking — all took hits in the most recent quarter, with the to-be-expected impacts on revenues and margins. Second quarter FY17, announced on May 31, included a 13% year-over-year drop in GAAP net revenue ($7.4 billion vs $8.5 billion), and a more than 50% drop in GAAP operating margin (2.4% vs 2016’s 5.3%). While Whitman is predicting a speedy upturn, the current performance is not reassuring: -Enterprise Group revenue was $6.2 billion, down 13% year over year, down 7% when adjusted for divestitures and currency, with an 8.8% operating margin; -servers revenue was down 14%; -storage revenue was down 13%; and, -networking revenue was down 30%. Overall IT spending is expected to inch up 1.4% this year, to $3.5 trillion, with the datacenter segment pegged at a very anemic 0.3% growth. “We are seeing a shift in who is buying servers and who they are buying them from” said John-David Lovelock, research vice president at Gartner. “Enterprises are moving away from buying servers from the traditional vendors and instead renting server power in the cloud from companies such as Amazon, Google and Microsoft. This has created a reduction in spending on servers which is impacting the overall data center system segment.” Vendor revenue for the global server market declined 4.6% to $11.8 billion in 1Q17, but HPE took a much bigger hit, with a 15.8% YoY decline in sales. Second-place Dell — 20.1% vs HPE’s 24.2% market share — grew its revenues 4.7%, while Cisco, IBM, and Lenovo were statistically tied for third place, and all saw revenue declines (3%, 34.7% and 16.5%, respectively). Storage was worse. 4Q16 enterprise factory revenue was down 6.7% YoY, to $11.1 billion, with Dell holding down top spot, courtesy of its EMC acquisition, and with HPE tied with...

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IBM Goes to War with Oracle…

We often talk about current rivalries like Google vs. Apple vs. Microsoft, but these pale next to some of the wars that have gone back decades. Granted the Sun vs. IBM war is long over and—surprisingly—IBM won. In fact, IBM has only lost one big battle historically, and that was against software company Microsoft. But another war that likely sets the record for length and resources is the one between IBM and Oracle—which many of us largely forgot about until recently. Well, apparently, IBM didn’t forget and I’m sure Oracle has been reminded of this fight because IBM just went after Oracle with guns blazing and it is an impressive effort. I’ve received feedback from some of the customers that have recently migrated from Oracle’s offerings to IBM and they appear to be singing IBM’s praises. For me, this is interesting because one of the frustrations I had when I worked at IBM was that IBM seemed to be afraid to take the gloves off, and ended up being the punching bag more often than not. As an employee working for a firm that refused to take the fight to a competitor wasn’t exactly a morale booster. So, it is great to see the firm finally take the gloves off with Oracle. Let’s talk about that this week. For more information, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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IBM… Details New Nanosheet Transistors for 5nm Chips

IBM and its Research Alliance partners, including GLOBALFOUNDRIES and Samsung announced that they have developed an industry-first process for building silicon nanosheet transistors that will enable 5 nanometer (nm) chips. Microprocessors manufactured with this process will incorporate as many as 30B switches on a fingernail sized chip, half again as many as the 7nm/20B transistor chips the Alliance announced less than two years ago. Scientists at the SUNY Polytechnic Institute Colleges of Nanoscale Science and Engineering’s NanoTech Complex in Albany, NY who work with the alliance used stacks of silicon nanosheets as the transistor device structure. This breakthrough design can replace the standard FinFET architecture the semiconductor industry has used up through existing 7nm node technologies. The Alliance-led effort is the first to demonstrate the feasibility of designing and fabricating stacked nanosheet devices that support electrical properties superior to FinFET. It also successfully extends the exploratory work in nanosheet semiconductor technologies that IBM has pursued for over a decade. According to IBM, compared to existing leading-edge 10nm chips, nanosheet-based 5nm technologies can deliver as much as 40 percent performance enhancements at fixed power, or 75 percent power savings at matched performance. To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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IBM and Nutanix Ink Hyperscale Alliance

IT vendors typically engage in strategic alliances for two reasons: 1) to extend the market reach of their existing products, and 2) to explore potential new markets and use cases. The new alliance between IBM and Nutanix pushes those two hot buttons for both companies. What are Nutanix and IBM planning to do? In short, the initiative aims to port the former’s Acropolis Hypervisor (AHV), Prism management software and Acropolis Container Services (ACS) to the latter’s Power Systems platform. That will result in turnkey, hyperconverged, Power-based solutions for large global enterprises. Which workloads and applications will be targeted? IBM and Nutanix noted three areas of particular interest: To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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IBM Continues its Leadership in Software-Defined Storage

“We’re #1!” is the proud cry that every team and organization would like to make, and IBM can claim that proud distinction for software-defined storage. The evidence comes from market research vendor International Data Corporation (IDC), which has ranked IBM #1 in the worldwide software-defined storage (SDS) market for the third straight year. This is a meaningful distinction as the software-defined storage market is large and is expected to continue its rapid growth. IDC estimates that the market for SDS would grow at a 40% CAGR in 2015-2020 and reach $1 billion in 2016. This is the fastest of any of the seven storage software functional markets that IDC tracks and shines in comparison to what IDC says is the low performance of storage replication and infrastructure solutions. In short, IBM has chosen the right functional storage market horse to ride (although, of course, it participates in the other functional markets where it is amongst the leaders in all storage software categories, as well as a large full-spectrum IT vendor). For more information, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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