[Info-vax] HPE Trims Back To The Core Enterprise Essentials

[Kerry Main]

> -----Original Message-----
> From: Info-vax [mailto:info-vax-bounces at rbnsn.com] On
> Behalf Of Simon Clubley via Info-vax
> Sent: 13-Sep-16 1:41 PM
> To: info-vax at rbnsn.com
> Cc: Simon Clubley <clubley at remove_me.eisner.decus.org-
> Earth.UFP>
> Subject: Re: [Info-vax] HPE Trims Back To The Core
> Enterprise Essentials
> 
> On 2016-09-13, Kerry Main <kemain.nospam at gmail.com>
> wrote:
> > Interesting dissection with a few more details of recent
> HPE
> > moves:
> >
> > Sept 09, 2016:
> >
> > http://www.nextplatform.com/2016/09/09/hpe-trims-
> back-core-e
> > nterprise-essentials/
> >
> > "With the split of HPE from HP Inc, the PC and printing
> company, HP
> > went from a company with approximately $100 billion in
> annual sales to
> > an HPE with around $50 billion in revenues. With the
> divestiture of
> > Enterprise Services to CSC and the spinoff of the
software
> units to
> > Micro Focus, HPE will drop to around $28 billion in
> revenues"
> >
> > Pretty interesting diet HPE has undertaken in approx.
the
> last 18
> > months.
> >
> 
> I hope HPE are not reducing themselves down to a size
> that's small enough to be sold off or taken over (although
to
> be honest I doubt that they are.)
> 
> I wonder if they really are trying to get back to a core
set of
> business sectors - if so I hope they don't mess it up
because
> there are some positives in having a core set of business
> areas which they can focus on without distractions.
> 
> Simon.
> 

I would not be surprised at all to see HPE positioning
itself for a takeover.

When takeovers were not that popular and I was at DEC, I
remember a number of conversations where the gist was "Heck,
we are a USD $10B company. There is no way anyone can buy us
out.. "..poof... Said the same thing about Compaq ...poof...

In the year before the Compaq takeover, DEC unloaded all
those products (System mgmt. to CA, Rdb to Oracle, converted
from Allin1 to Exchange email internally, other products)
which would likely have not been considered strategic to
Compaq. 

At $100B, HP really was too big to be bought. At $28B, that
is certainly in the range of takeovers. The ARM buyout by
Softbank was $32B:
http://www.wsj.com/articles/softbank-agrees-to-buy-arm-holdi
ngs-for-more-than-32-billion-1468808434

Btw, Softbank also bought Sprint in 2013 (see prev link), so
these private consortiums / companies have big pockets. 

Industry chatter on this topic:
http://www.cnbc.com/2016/07/29/hewlett-packard-enterprise-st
ock-spikes-after-buyout-chatter.html?__source=yahoo%7Cfinanc
e%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=103830374&yptr
=yahoo

"KKR, Apollo Global Management and Carlyle Group are mulling
a buyout of the enterprise technology company, according to
investigative technology site The Information. A sale of the
company, which could be worth more than $40 billion, would
allow the company to weather the IT industry's transition to
the cloud away from the pressures of the public market, an
unnamed source told The Information's Kevin McLaughlin."


Regards,

Kerry Main
Kerry dot main at starkgaming dot com