Hewlett Packard Enterprise (NYSE: HPE) today held its annual Securities Analyst Meeting and provided strategy and financial updates from president and CEO Antonio Neri, executive vice president and CFO Tarek Robbiati, and other business leaders. The webcast and presentations can be found on the HPE Investor Relations Website: hpe.com/investor/SAM2018
HPE Strategy & Market Opportunity
Neri discussed the forces driving HPE’s performance, as well as the company’s vision, outlook and strategy.
“HPE is committed to developing the breakthrough technology solutions that will advance the way we live and work, and drive our customers’ businesses forward,” said Neri. “With improved execution and a simplified operating model, we’re on track to significantly exceed our financial commitments in fiscal year 2018, and we continue to be well-positioned to create attractive value for our shareholders. Our priorities in fiscal year 2019 are to accelerate growth in the Intelligent Edge, deliver profitable growth in Hybrid IT, and grow overall operating profits and expand margins.”
To transform customers’ technology, HPE is providing the products to create a software-defined, hybrid operating model that spans any cloud to multi-cloud, on and off-premises and at the edge. HPE is leveraging its HPE Pointnext services offering to help customers foster a culture of innovation for their employees. To drive change in customers’ economics and technology investment strategy, HPE helps customers unlock capital trapped in underutilized fixed assets and explore as-a-service consumption models to optimize IT investments through the HPE Financial Services business.
Delivering Operating Profit Growth and Expanding Margins
Neri shared an update on the progress of HPE Next, the company’s initiative to re-architect HPE from the ground up, with the goal of driving better operational efficiency and effectiveness. For example, in FY18, the company reduced more than 26 platforms to 10 platforms in the Volume product category and simplified more than 400 sales compensation plans to just 25. The company’s FY19 HPE Next priorities will include decreasing manufacturing locations, narrowing the company’s geographic footprint, and optimizing processes and IT systems.
In addition, Neri discussed how the company has increased its focus on higher-growth markets and higher-value offerings, such as high-performance compute, hyperconverged and all-flash storage arrays.
“HPE Next has delivered significant value in FY18 and is on track to drive earnings per share (EPS) growth well into the future,” said Neri. “By streamlining operations and investing in areas of greatest importance to our customers as they evolve their businesses, we are doing more than anticipating what comes next. We are actually building what comes next.”