Hewlett Packard Enterprise Grows Server Compute Business As Neri Takes Over as CEO

by Sean Michael Kerner

HPE reports 1Q18 revenue of $7.7 billion as the legacy of Meg Whitman continues.

Hewlett Packard Enterprise (HPE) reported its first financial results without Meg Whitman at the helm on Feb. 22. As of Feb. 1, the role of CEO has been held by Antonio Neri, who is looking to stay on the course Whitman helped to set.

HPE reported its first quarter fiscal 2018 results on Feb. 22, with revenue coming in at $7.7 billion, for an 11 percent year-over-year gain. Net earnings were reported at $1.5 billion, up significantly from the $300 million reported for the first quarter of fiscal 2017.HPE

"As a 23-year veteran of the company, I am honored to take on this role and excited about the opportunities ahead," Neri said during HPE's earning call. "Many of those opportunities exist thanks to Meg Whitman's tremendous leadership during the past six and a half years."

Neri added that Whitman set HPE on its current path and developed the strategy along with Neri to take HPE well into the future.

Server Growth

A core element of HPE's success is growth in its Hybrid IT business component, which includes servers. For the quarter, HPE reported its server compute-related revenues increased by 11 percent year-over-year.

Neri said the compute growth was driven by HPE's industry standard servers as well as High Performance Computing (HPE) and hyper-converged offerings. Neri also highlighted some of the new innovations HPE announced at the end of 2017.

"In November, we announced the world's most scalable and modular in-memory computing platform, called HPE Superdrome Flex," Neri said. "The platform enables enterprises of any size to process and analyze massive amounts of data and turn it into real-time business insights."

Neri added that in December, the HPE OneSphere software management platform was announced. OneSphere enables deployment, operation and optimization of on-premises private cloud environments.

Building to the Edge

While cloud and data center deployments have been a core part of HPE's strategy for several years, Neri emphasized that so too is the network edge.

Among HPE's technologies that fit into the edge are wireless LAN, network switching and converged Edge systems that bring together compute, storage, security and artificial intelligence.

"The Edge is the word outside the data center, and it is where digital transformation begins," Neri said. "It is where enterprises interact with their customers, where employees come together, and where companies manufacture their products."

Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist.

This article was originally published on Friday Feb 23rd 2018
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