Dive Brief:
- Hewlett Packard Enterprise is well on its way in completing major restructuring work and ready to start building in new areas, according to The Register, citing Antonio Neri, executive vice president and general manager for the Enterprise Group.
- In July 2015, Hewlett Packard split into two companies, creating HPE. In turn, in the past year the company has unloaded its enterprise services and software divisions. The company will now "continue to refine our portfolio through tuck-in acquisitions, M&A where it makes sense," Neri told The Register.
- HPE will focus on software defined areas and the "cloud stack," Neri said. The company is looking to use bolt-on acquisitions to allow for further delivery of full automation and orchestration to customers.
Dive Insight:
Since HP's split into two companies, HPE has worked to streamline its core business and focus on enterprise sales. That, in particular, means getting out of slow-growth areas, like services.
Now, more than ever, the company is focused on providing hybrid enterprise IT with both cloud and infrastructure solutions. But with the creation of the enterprise tech juggernaut Dell Technologies, the company faces stiff competition and could see its status as the leading provider of servers and private cloud challenged.
Though the company has worked to scale down in the past year, strategic acquisitions would allow it to grow and offer new capabilities without having to pay for R&D efforts. That way, HPE can bring new solutions quickly to market, allowing enterprise customers the choice of more agile solutions.