Hewlett Packard Enterprise Accelerates Pivot to Drive Long-Term Sustainable, Profitable Growth and Announces FY21 Outlook

Hewlett Packard Enterprise (NYSE: HPE) today held its virtual Securities Analyst Meeting and provided strategy and financial updates from Antonio Neri, president and CEO, Tarek Robbiati, executive vice president and chief financial officer, and members of the leadership team. The webcast and presentations can be found on the HPE Investor Relations Website: hpe.com/investor/SAM2020.

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HPE is accelerating its pivot as edge-to-cloud platform as-a-service company

Last year at its Securities Analyst Meeting, HPE unveiled its edge-to-cloud platform as-a-service vision and strategy to drive long-term sustainable, profitable growth. Neri affirmed the strategy is more relevant than ever, and discussed the company’s plans to accelerate its ability to meet evolving customer needs.

“While the global pandemic is unlike any crisis we have ever faced, it has served as a catalyst, making digital transformation a strategic imperative for enterprises,” said Neri. “Enterprises need to deliver secure connectivity, remote work solutions, data analytics capabilities and mobile-first, cloud-like experiences to their employees and customers. And they need to do it with speed and flexibility, preserving liquidity to navigate the macro economic uncertainty and adapt to the new world. This is a significant opportunity for Hewlett Packard Enterprise.”

Neri continued, “We already have a distinctive and industry leading portfolio of edge-to-cloud solutions and unique capabilities that are resonating with customers. To capitalize on this opportunity, we have outlined a set of strategic priorities to stabilize our core businesses, double down on growth areas and accelerate our pivot to as-a-service, while also taking a deliberate set of actions to strengthen our financial foundation and invest in our future.”

Advancing HPE’s strategy to drive long-term sustainable, profitable growth

Across all HPE businesses, the company is aligning resources, unlocking operating leverage and investing in growth.

• Transform and stabilize core compute and storage businesses: Compute and storage are essential resources for enterprises to process and store data. HPE has leadership positions in these businesses and is focused on growing market share in profitable segments. The company is also focused on driving operational services attach and recurring revenue by pivoting to as-a-service offerings. By driving increased performance in these core businesses, HPE can further align resources to new growth segments.

• Double down in growth businesses: HPE is focused on making strategic investments to fuel future growth and has taken very deliberate steps to pivot its portfolio and expand into new customer segments and markets. HPE’s Intelligent Edge and High Performance Compute businesses are examples of investing for growth. For example, HPE recently closed its acquisition of Silver Peak that provides HPE Aruba with an immediate and leading position in the fast-growing SD-WAN market.

• Accelerate our pivot to as a service: Last year, HPE committed to delivering its entire portfolio as a service by the end of 2022. HPE’s pivot to offering everything as a service is a significant long-term value driver and has momentum. HPE GreenLake, HPE’s consumption-based offering, is one of HPE’s fastest-growing businesses. In Q3, HPE GreenLake services orders grew a record 80% from the prior-year period or 82% when adjusted for currency. The company plans to continue to invest in its capabilities to deliver a differentiated experience for its customers.

• Allocate resources and invest for the future: HPE committed to taking a deliberate set of actions to strengthen its financial foundation and allocate resources to areas of growth when it announced a cost optimization and prioritization plan in May. The company remains on track with its guidance to generate a net annualized run-rate savings of $800 million by the end of FY22, with most of the savings achieved by the end of FY21.

“Across all of our businesses, we are making bold moves to drive our agility, strengthen our capabilities, simplify our processes, and enhance our execution,” said Neri. “Our ability to continue to innovate for our customers is made possible by strong fiscal management and execution, which in turn drives value for all stakeholders,” said Neri.