HPE Restructuring: 5 Things You Need To Know
A Hewlett Packard Enterprise restructuring, which goes into effect for the start of the company’s new fiscal year November 1, includes a new Hybrid Cloud Business unit, executive reassignments and the departure of two top executives.
Providing A ‘True Cloud Experience’ For Customers And Partners
Hewlett Packard Enterprise CEO Antonio Neri said the company is implementing a restructuring that will go into effect for the start of the company’s new fiscal year on Nov. 1 in order to accelerate the execution of its HPE GreenLake edge-to-cloud strategy.
“Having laid the foundation for success, we are now evolving our operating model to accelerate our execution, deliver a superior customer and partner experience, and drive growth for the company and value for our shareholders,” said Neri in a blog post. “These changes to HPE’s organizational structure and executive leadership, which take effect at the start of our 2024 fiscal year on November 1, 2023, will further unify our portfolio and enhance the delivery of a true cloud experience for our customers and partners. They will enable tighter integrations that benefit our customers and partners and spark innovation. And, they position us to continue to win in the market.”
The restructuring – which aligns business segment financial reporting with the new business structure - moves the HPE Storage business, which accounted for $4.7 billion in sales in the last full fiscal year, into a new Hybrid Cloud Storage business unit.
In the blog post, Neri said the vision he laid out six years ago of a future that would be edge-centric, cloud-enabled and data-driven has turned into “strong momentum” for customers and partners in every industry.
HPE GreenLake now supports 27,000 unique customer logos and 3.4 million connected devices. “HPE GreenLake is at the center of how we implement our edge-to-cloud strategy,” he said.
In the most recent quarter, HPE reported a 48 percent increase in the annualized revenue run rate for HPE GreenLake in the most recent quarter to $1.3 billion. HPE’s GreenLake total contract value is now nearly $12 billion.
HPE’s Intelligent Edge business, meanwhile, was up 50 percent in the most recent quarter to to $1.4 billion. That marks the company’s fifth consecutive record quarter for intelligent edge sales.
The Intelligent Edge business with Aruba networking now accounts for the largest segment of HPE’s operating profit, accounting for 49 percent of total operating profit.
“As I’ve said many times, I’m confident that we can accomplish anything with the right team guided by the right leaders. I believe we have both,” said Neri. “I am proud of the progress we have made in our transformation to be the edge-to-cloud company. These new strategic alignments will enhance the integrated customer and partner experience, strengthen our market position, and accelerate our execution. I look forward to continuing to deliver in ways that only HPE can.”