Hewlett Packard Enterprise Company (HPE) is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze, and act upon data seamlessly from edge to cloud.
The company enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future. The company’s customers range from small-and-medium-sized businesses to large global e...
Hewlett Packard Enterprise Company (HPE) is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze, and act upon data seamlessly from edge to cloud.
The company enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future. The company’s customers range from small-and-medium-sized businesses to large global enterprises and governmental entities.
Strategy
HPE has deployed an edge-to-cloud strategy that capitalizes on emergent megatrends and delivers a data-first modernization approach for customers.
The company has shifted its mix of products and services, and how the company delivers that mix to customers. HPE has evolved to a platform-based model, fueled by a portfolio richer in software and services. In hybrid cloud, the company has redefined the cloud space by delivering an experience that is hybrid by design with the company’s HPE GreenLake cloud as the centerpiece of its strategy; it accelerates multi-generation IT transformation through a unified cloud-native and AI-driven experience that empowers customers to access, analyze, and extract value from their data across public clouds, data centers, colocation facilities, and at the edge. The AI market requires a modern and high-performing networking fabric as a core foundation to deliver a more efficient data-center cloud, which the company offers through its AI-driven portfolio of networking solutions. The company’s server business supports both traditional servers and those meant to enable AI workloads with decades of large-scale infrastructure expertise, including technologies like direct liquid cooling that are powering some of the company’s largest AI systems. The company’s Financial Services (‘FS’) business complements the company’s solution offerings by helping customers unlock financial capacity.
The pending acquisition of Juniper Networks, Inc. (‘Juniper Networks’) further supports the aforementioned strategies and enables the company to execute on them.
Business Segments, Products and Services
The company’s operations are organized into five reportable business segments: Server, Hybrid Cloud, Intelligent Edge, Financial Services, and Corporate Investments and Other.
The company had two distributors which represented approximately 14% and 11% of the company's total net revenue in fiscal 2024, primarily within the Intelligent Edge and Server segments.
Server
The company’s Server segment offerings consist of general-purpose servers for multi-workload computing and workload-optimized servers to deliver the high performance and value for demanding applications, and integrated systems consisted of software and hardware designed to address high-performance computing and supercomputing (including exascale applications), artificial intelligence, data analytics, and transaction processing workloads for government and commercial customers globally. This portfolio of products includes the company’s secure and versatile HPE ProLiant Rack and Tower servers; HPE Synergy, a composable infrastructure for traditional and cloud-native applications; HPE Scale Up Servers product lines for critical applications, including large enterprise software applications and data analytics platforms; HPE Edgeline servers; HPE Cray EX; HPE Cray XD (formerly known as HPE Apollo); and HPE NonStop. Server offerings also include operational and support services sold with systems and as standalone services.
Hybrid Cloud
The Hybrid Cloud segment offers a wide variety of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service (‘SaaS’) space. Storage includes data storage and data management offerings with the HPE Alletra Storage portfolio; unstructured data solutions and analytics for AI; data protection and archiving; and storage networking. It also includes AIOps-driven intelligence with HPE InfoSight and HPE CloudPhysics. In private cloud, the company’s Private Cloud Enterprise offerings include new cloud-native offerings and capabilities for virtual machines, containers, and bare metal; a full suite of private cloud offerings that enable customers to self-manage or choose a fully managed experience.
In fiscal 2024, the company launched a new offering, Private Cloud AI, that captures the emerging enterprise model fine-tuning, retrieval augmented generation and inference markets for AI solutions. Private Cloud AI is fully integrated, standardized offer that has been co-developed with AI market leader Nvidia, with the goal to provide an out of the box solution for enterprise AI. This segment also provides self-service private cloud on-demand with HPE GreenLake for Private Cloud Business Edition. Infrastructure software includes monitoring and observability for day two operations and beyond through the company’s acquisition of OpsRamp and unified data access through its HPE Ezmeral Data Fabric and analytics suite, which helps move and transform data for use in AI and other applications. Hybrid Cloud segment also includes data lifecycle management and protection through the company’s suite of offerings, including Zerto Disaster Recovery.
Intelligent Edge
The Intelligent Edge segment offers wired and wireless local area networks, campus, branch, and data center switching, software-defined wide-area-networks, private and public cellular network software, network security, and associated services that enable secure connectivity for businesses of any size. The HPE Aruba Networking product portfolio includes hardware products such as Wi-Fi access points, switches, and gateways. The HPE Aruba Networking software and services portfolio includes cloud-based management, network management, network access control, software-defined wide-area networking, network security, analytics and assurance, location services software, private and public cellular core software, and professional and support services, as well as aaS and consumption models through the HPE GreenLake cloud for the Intelligent Edge portfolio of products. Intelligent Edge offerings are consolidated in the edge service platform, which takes a cloud-native approach that provides customers with a unified framework to meet their connectivity, security, and financial needs across campus, branch, data center, and remote worker environments. Upon closing of the pending acquisition of Juniper Networks, the company expects to offer an even more comprehensive portfolio of networking solutions.
Financial Services
Financial Services (‘FS’) provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services for customers that facilitate unique technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others. FS also supports financial solutions for on-premise flexible consumption models, such as the HPE GreenLake cloud.
Corporate Investments and Other
Corporate Investments and Other includes the Advisory and Professional Services business, which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services, as well as complex solution engagement capabilities; the Communications and Media Solutions business, which primarily offers software and related services to the telecommunications industry; and Hewlett Packard Labs, which is responsible for research and development.
Sales, Marketing, and Distribution
The company manages its business and reports its financial results based on the segments described above. The company’s customers are organized by commercial and large enterprise groups, including business and public sector enterprises, and purchases of the company’s products, solutions and services may be fulfilled directly by the company or indirectly through a variety of partners, including:
resellers that sell the company’s products and services, frequently with their own value-added products or services, to targeted customer groups;
distribution partners that supply the company’s solutions to resellers;
original equipment manufacturers (‘OEMs’) that integrate the company’s products and services with their own products and services, and sell the integrated solution;
independent software vendors that provide their clients with specialized software products and often assist the company in selling the company’s products and services to clients purchasing their products;
systems integrators that provide expertise in designing and implementing custom IT solutions and often partner with the company to extend their expertise or influence the sale of the company’s products and services; and
advisory firms that provide various levels of management and IT consulting, including some systems integration work, and typically partner with the company on client solutions that require its unique products and services.
The mix of the company’s business conducted by direct sales or channel differs substantially by business and region. Customer buying patterns and different regional market conditions require the company to tailor its sales, marketing, and distribution efforts accordingly. The company is focused on driving the depth and breadth of the company’s coverage, in addition to identifying efficiencies and productivity gains, in both the company’s direct and indirect businesses. This has resulted in a combined go-to-market model, in which the company has a direct sales presence in a number of countries, while the company sells and delivers its products, solutions, and services through a channel-only model in the remaining countries. In those countries where the company has a direct sales presence, the company follows a bifurcated sales operational model with separate go-to-market routes for high-velocity, transactional hardware sales, on the one hand and for services and solutions, on the other hand. Also, the company typically assigns an account manager to manage relationships across the company’s business with large enterprise customers, as well as with large public sector accounts. The account manager is supported by a team of specialists with product and services expertise. For other customers, the company’s businesses collaborate to manage relationships with commercial resellers targeting smaller accounts, both in the commercial and public sector space.
Suppliers
In some instances, the company’s single-source suppliers (e.g., Intel and AMD as suppliers of certain x86 processors) are the single-source suppliers for the entire market.
International
The company’s products and services are available worldwide.
Research and Development (R&D)
The company's expenditures for R&D were $2.2 billion in fiscal 2024 (year ended October 31, 2024).
Included in the R&D work taking place at the company is the following initiatives:
In Server, the company is developing high-quality next-generation compute solutions that encompass servers, server-attached options, and software, integrating the latest industry technology and aligning with the company’s customers' evolving needs. Furthermore, the company is advancing its SaaS capabilities by creating cloud-native, cloud-based server management solutions to enhance the company’s existing portfolio. In the high performance computing and AI sector, the company’s investments are focused on pioneering leadership computing solutions that deliver superior performance and efficiency. These solutions feature leading edge silicon architectures, high-speed interconnects, advanced storage and innovative direct liquid cooling. The company’s R&D efforts in the realm of AI are particularly robust, with new server solutions designed for AI inference engines and integrated into larger HPE Private Cloud AI for inferencing, retrieval augmented generation, and model fine-tuning. Large-scale model training and tuning, including natural language processing, large language models, and multi-modal training for models with trillions of parameters are supported by the company’s leading AI solutions. These efforts are bolstered by the development of high-performance computing tools, cloud-native and scalable cluster management software, and transaction processing software, which have been instrumental in achieving the company’s milestone of delivering the world's first exascale supercomputer.
In Hybrid Cloud, the company is investing in a comprehensive portfolio of storage and private cloud technologies and capabilities that are focused on enabling customers to transform through the power of data and AI, modernize their IT infrastructure and simplify hybrid operations, delivering a cloud operational experience via the HPE GreenLake cloud. The company continues to invest in the storage portfolio aligned with the customers evolving data and AI needs. The company has extended the deployment model from on-premise and cloud-adjacent to include software-defined cloud native deployments in Amazon Web Services. In private cloud, the company is developing fully integrated hardware-software offers that simplify day-to-day management, operations and data protection, enables an on-premise public-cloud like experience while addressing security, privacy, governance, and regulatory compliance needs. The investment includes airgapped/disconnected offers and offers for heavy data traffic and latency requirements at the edge. In the AI space, the company has invested in building turn-key integrated systems co-engineered with Nvidia that integrate HPE AI hardware and software technologies with Nvidia technologies to radically increase time to value of GenAI capabilities optimized for inferencing, retrieval augmented generation, and model fine-tuning. The company has expanded its cloud observability and orchestration capabilities and virtualization options through the acquisitions of OpsRamp (observability) and Morpheus (orchestration), extending the company’s ability to simplify IT complexity in multi-cloud and multi-vendor environments. Finally, the company has been rapidly developing an enterprise-grade hypervisor for virtual machines, along with the ability to manage cloud-native applications using containerization, or specialized workload needs with bare metal as a service.
In Intelligent Edge, the company is investing in a broad portfolio of networking and security capabilities, addressing remote, branch, campus, data center, and cloud use cases. The company is expanding its wireless access portfolio to include new Wi-Fi (e.g., Wi-Fi 7) and private cellular (4G, LTE, and 5G) products to complement the company’s existing portfolio. The company has expanded its security capabilities with last year’s acquisition of Secure Service Edge (‘SSE’) provider Axis Security and delivering stand-alone SSE, and integrating security with the company’s software-defined wide area network (‘SD-WAN’) capabilities to deliver a single-vendor Secure Access Services Edge solution. In the company’s Ethernet Switch portfolio, the company is investing in new Data Center Networking platforms and features to expand the company’s total addressable market to complement the campus and branch segment. The company leverage the HPE GreenLake cloud to provide consistent access to the company’s aaS capabilities and enable new business models, including network-as-a-service. The company is also investing in automation, machine learning, and AI-based network operations to optimize user experience and improve operator efficiency, as exemplified by the company’s cloud-native Aruba Central cloud service, which is expected to provide manageability across the company’s entire portfolio, including Wireless LAN, Ethernet switching, SD-WAN, and security.
In Hewlett Packard Labs, the company is focused on disruptive innovation and applied research in collaboration with other HPE business groups to deliver differentiated intellectual property. The company’s innovation agenda is focused on developing technologies in the areas of system architecture, networking, AI, sustainability, edge-to-cloud, quantum computing, and sustainability. The company also continues to invest in its silicon design capability to accelerate the development and delivery of the company’s technology.
Patents
As of October 31, 2024, the company’s worldwide patent portfolio included approximately 13,000 issued and pending patents.
Seasonality
From time to time, the markets in which the company sells its products, services, and solutions experience weak economic conditions that may negatively affect sales. The company experiences some seasonal trends in the sale of the company’s products and services. For example, European sales are often weaker in the summer months.
Competition
Server
The company’s primary competitors in data center infrastructure are technology vendors, such as Dell Technologies Inc., Super Micro Computer, Inc., Cisco Systems, Inc., and Lenovo Group Ltd. The company’s primary competitors in high performance infrastructure include technology vendors that can design and build solutions that deliver performance scalability and connectivity necessary to handle super-compute and AI workloads, including Dell Technologies Inc., Super Micro Computer, Inc., Lenovo Group Ltd., Fujitsu Network Communications, Inc., and Atos Information Technology Incorporated.
Hybrid Cloud
The company’s primary competitors are other infrastructure and cloud management software technology vendors, such as Broadcom/VMware, Cisco Systems Inc., Dell Technologies Inc., IBM, NetApp Inc., Nutanix, and Pure Storage; and public cloud vendors like Amazon Web Services, Google Cloud, and Microsoft Azure. The company’s strategy is to deliver a secure and scalable cloud-like experience across any app or mission-critical workload—traditional or cloud-native.
Intelligent Edge
The company’s primary competitors are technology vendors, such as Cisco Systems, Inc., Extreme Networks, Inc., Arista Networks Inc, Palo Alto Networks, Fortinet, Juniper Networks (Juniper Networks, Inc.), Ruckus Networks, and Ubiquiti; and networking-as-a-service vendors, such as Nile and Meter. The company’s strategy is to deliver superior enterprise wired and wireless local-area, wide-area and data-center networking components and software, routing technology, high-value technology support services, and differentiated integrated solutions that combine the company’s infrastructure, software, and services capabilities.
Financial Services
In the company’s financing business, the company’s primary competitors are captive financing companies, such as IBM Global Financing, Dell Financial Services, and Cisco Capital, as well as banks and other financial institutions. The company’s primary IT Asset Disposition (‘ITAD’) competitors are ERI, Ingram Micro, Sage Sustainable Electronics, and Sims Recycling Solutions.
History
Hewlett Packard Enterprise Company was founded in 1939. The company was incorporated in 2015.
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