Channel Beat: HP Split Will Change The Channel

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Partners and vendors have spent the week reacting to HP’s shocking announcement that it will split into two companies.

HP will spin its computer and printer operations off from its enterprise hardware and services business.

Dell says it expects to benefit from HP’s split, saying it has a clearer strategy and story to sell to partners. Cisco, on the other hand, is bracing for even more intense competition from the new HP enterprise company in many markets -- including cloud, SDN and hyper-converged infrastructure.

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Cisco partners are particularly concerned about how quickly the new HP enterprise group will be able to make acquisitions, especially in the SDN market.

HP will be completely split by Halloween of next year.

Sources say Cisco may pull out of its joint VCE venture with EMC and VMware as tensions between Cisco and EMC escalate.

A Cisco spokesperson told CRN the company will not pull out of its $716 million investment in VCE, but sources expect an announcement contradicting that around the end of the year.

Cisco owns a 35 percent stake in VCE, and VCE vBlock sales continue to grow.

Samsung estimates a whopping 60 percent drop in its Q3 profit. This will be Samsung’s fourth consecutive quarter of falling profits.

Samsung said the slide is due to decreased demand for its mobile products and greater marketing expenses. Samsung partners say they’re surprised by the numbers, and overall smartphone market numbers continue to rise.

Samsung will release the Galaxy Note 4 and Note Edge later this month.