Category Archives: HPE

HPE Reseller Business Alert- Unlock new markets with Parallels RAS & HPE

The advent of cloud computing technology has changed the way that datacenters operate in the business environment. Hyperconvergence is the latest trend in the datacenter segment. Software-defined hyperconverged integrated systems bring cloud benefits to datacenters by providing faster time to value, improving performance, and lowering the total cost of ownership. Organizations are aggressively adopting hyperconvergence […]

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How are hyper converged systems shaping technology in the datacenter?

Organizations that are planning to upgrade or realign their datacenter solutions have to consider one important innovation: hyperconverged systems. Hyperconvergence has taken the IT storage world by storm. A hyper Converged infrastructure (HCI) enables businesses to integrate multiple IT segments into a single entity while reducing the cost and complexity involved in the process. Businesses […]

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Contract dispute with HPE costs Oracle $3bn

Lady Justice On The Old Bailey, LondonOracle has released a statement declaring it will appeal a jury decision to side with HPE in a long-running contract dispute worth $3 billion.

The dispute dates back to 2011 when Oracle decided to stop creating new versions of its database and other software for systems running Intel’s Itanium chip. The HP Enterprise claimed the decision violated the contractual terms between the organizations, a claim which the jury also believed. Oracle also claimed Intel had decided to stop supporting Itanium shifting focus to the x86 microprocessor, which the chip-maker has denied.

“Five years ago, Oracle made a software development announcement which accurately reflected the future of the Itanium microprocessor,” said Dorian Daley, General Counsel of Oracle. “Two trials have now demonstrated clearly that the Itanium chip was nearing end of life, HP knew it, and was actively hiding that fact from its customers.

“Oracle never believed it had a contract to continue to port our software to Itanium indefinitely and we do not believe so today; nevertheless, Oracle has been providing all its latest software for the Itanium systems since the original ruling while HP and Intel stopped developing systems years ago.”

Back in 2012, Santa Clara court’s Judge James Kleinberg confirmed to Oracle it would have to maintain its end of the contract for as long as HPE remained in the Itanium game. This decision was appealed by Oracle, which delayed the damages trial.

HPE has been seeking damages of $3 billion – $1.7 billion in lost sales before the case started, plus $1.3 billion in post-trial sales – which was awarded in full by the jury. Daley has unsurprisingly stated Oracle will appeal the decision, which could mean the sage will continue for some time.

Oracle has been having a tough time in the court room as of late, as it was seeking $8.8 billion in damages from Google over the unlicensed use of Java in a case which has dated back to 2010. The recent ruling was a victory for Google as the jury found Android does not infringe Oracle-owned copyrights because its re-implementation of 37 Java APIs is protected by ‘fair use’. Oracle again stated it would appeal the decision, though it has been a tough couple of months for Oracle’s legal team.

HPE give IoT portfolio an edgy feel

Oil and gas platform in the gulf or the sea, The world energy, OHPE has unveiled new capabilities and partnerships to bring real-time data analytics and IoT insight to the network edge, reports Telecoms.com.

The team claims its new offerings, Edgeline EL1000 and Edgeline EL4000, are the first converged systems for the Internet of Things, capable of integrating data capture, analysis and storage at the source of collection. Transport and storage of data for analytics are becoming prohibitively expensive, the company claims, so the new products offer decision making insight at the network edge to reduce costs and complexities.

HPE claims the new offerings are capable of delivering heavy-duty data analytics and insights, graphically intense data visualization, and real-time response at the edge. Until recently, the technology to drive edge analytics has not been available, meaning data has had to be transferred to the network core to acquire insight. The team have also announced the launch of Vertica Analytics Platform which offers in-database machine learning algorithms and closed-loop analytics at the network edge.

“Organizations that take advantage of the vast amount of data and run deep analytics at the edge can become digital disrupters within their industries,” said Mark Potter, CTO of the Enterprise Group at HPE. “HPE has built machine learning and real time analytics into its IoT platforms, and provides services that help customers understand how data can best be leveraged, enabling them to optimize maintenance management, improve operations efficiency and ultimately, drive significant cost savings.”

The news follows an announcement from IBM and Cisco last week which also focused on IoT at the edge. Alongside the product launches from HPE, the team also announced a partnership with GE Digital to create more relevant propositions for industry. The partnership focuses on combining HPE technical know-how with GE’s industrial expertise and its Predix platform to create IoT-optimized hardware and software. GE’s Predix platform will be a preferred software solution for HPE’s industrial-related use cases and customers.

While the promise of IoT given the industry plenty to get excited about in recent years, the full potential has been difficult to realize due to the vast amount of data which needs to be transported to the network core to process and drive insight from. Although it would seem logical to process the data at the source of collection, technical capabilities have not been at the point where this has been possible. Recent advances from the IBM/Cisco and HPE/GE partnerships are removing the need to transfer information, and also the risk of bottleneck situations, points of failure and storage expenses from the IoT process.

“In order to fully take advantage of the Industrial IoT, customers need data-centre-grade computing power, both at the edge – where the action is – and in the cloud,” said Potter. “With our advanced technologies, customers are able to access data centre-level compute at every point in the Industrial IoT, delivering insight and control when and where needed.”

Applications for the edge-analytics proposition could be quite wide, ranging from production lines in Eastern Europe to oil rigs in the North Sea to smart energy grids in Copenhagen. It would appear the team are not only targeting industrial segments, where IoT could ensure faster and more accurate decision making in the manufacturing process for instance, but also those assets which do not have reliable or consistent connectivity.

Microsoft, HPE and Cisco take top-spot for infrastructure vendors

male and female during the run of the marathon raceMicrosoft, HPE and Cisco have been named as three of the leading names in the cloud industry by Synergy Research as the firm wraps up the winners and losers for the first quarter.

While the cloud infrastructure market has been growing consistently at an average rate of 20% year-on-year, 2016 Q1 was estimated at 13%, though this was to be expected following peak sales during the latter stages of 2015. Microsoft led the way for cloud infrastructure software, whereas HPE led the private cloud hardware market segment, and Cisco led the public cloud hardware segment.

“With spend on cloud services growing by over 50% per year and spend on SaaS growing by over 30%, there is little surprise that cloud operator capex continues to drive strong growth in public cloud infrastructure,” said Jeremy Duke, Synergy Research Group’s Chief Analyst. “But on the enterprise data centre side too we continue to see a big swing towards spend on private cloud infrastructure as companies seek to benefit from more flexible and agile IT technology. The transition to cloud still has a long way to go.”

For the last eight quarters total spend on data centre infrastructure has been running at an average of $29 billion, with HPE controlling the largest share of cloud infrastructure hardware and software over the course of 2015. Cloud deployments or shipments of systems that are cloud enabled now account for well over half of the total data centre infrastructure market.

cloud leaders

CSC announces HPE enterprise services merger to create $26bn business

Meg Whitman

HPE CEO Meg Whitman

CSC has announced it will be merging with the enterprise services segment of HPE, as the latter reported its fourth consecutive quarter of year-over-year revenue growth.

Revenues for 2016 Q2 were reported at $12.7 billion, up more than 1%, as the team attributed the success to its servers, storage, networking and converged infrastructure business units. The enterprise services unit also saw a healthy performance, and will now be spun out and merged with CSC to create a $26 billion organization.

“The transaction is currently targeted to be completed by March 31, 2017,” said HPE CEO Meg Whitman on the company’s earnings call. “For the combined CSC and Enterprise Services, this will create a new company that will be a pure-play global IT services leader. For customers, this means global access to world class offerings in cloud, mobility, application development and modernization, business process services, IT services, big data and analytics, and securities.”

The move comes six months after CSC underwent a similar split to HP and HPE. CSC serves commercial and government clients globally, whereas CSRA targets public sector clients in the United States. Following the completion of the transaction next year, CSC’s current president and CEO Mike Lawrie will continue to head up the new company, though the new brand has not been released as of yet. Both companies have seemingly benefited from their respective splits in recent months, demonstrating healthy growth since the two separations.

Since the CSC separation, the company has been aggressively reinforcing its position in the market with various acquisitions and joint ventures. Created CeleritiFinTech, a joint venture with HCL, to strengthen its position in the banking sector, acquired UXC to increase its footprint in the Australia-New Zealand region and bought Xchanging to bolster its insurance solutions.

“Our proposed merger with HPE Enterprise Services is a logical next step in CSC’s transformation,” Lawrie said. “As a more powerful and versatile global technology services business, the new company will be well positioned to innovate, compete and serve clients in a rapidly changing marketplace. We are excited by the great potential this merger brings to our people, clients, partners and investors, and by the opportunity to strengthen our relationship and collaboration with HPE.”

In terms of HPE moving forward, Whitman highlighted next generation software defined infrastructure is a priority for the business, focused on servers, storage, networking, converged infrastructure, hyper-converged, and Helion. The company has stated it will remain open to future acquisitions, though it would appear there aren’t any major targets in the pipeline as Whitman seemed ‘standoffish’ during the earnings call.

New HP Tech Venture Group may lead to HPE overlap

HPHP has announced the launch of HP Tech Ventures, the new corporate venture arm of the business, which will invest in IoT and artificial intelligence start-ups that could end up competing with HPE.

The team will aim to develop partnership and identify potential acquisitions within the new era of disruptive technologies. HP Tech Ventures, which will be based out of offices in Palo Alto and Tel Aviv, will be led by Chief Disrupter, Andrew Bolwell targeting new technologies in 3D transformation, immersive computing, hyper-mobility, Internet of Things, artificial intelligence, and smart machines in the first instance.

Following the split of Hewlett-Packard into two separate organizations, HP took the PC and printer assets, while HPE is now focused on enterprise-orientated technologies. Over the last several months, HPE has made numerous product launches and investments in cloud, machine-learning and IoT technologies, and HP Tech Ventures targeted technologies (IoT, AI, smart machines etc.) could potentially make the once combined companies, competitors. HPE also has its own venture arm, where it has invested in various cloud, big data and security start-ups.

“The next technology revolution is shifting towards strategic markets that speak to HP’s strengths,” said Shane Wall, HP Chief Technology Officer and head of HP Labs. “With our global brand and broad reach into consumer and commercial markets worldwide, HP can help start-ups bring product to market, build their business and scale in the global marketplace as they grow.”

The company has claimed it will be able to offer rapid scale to innovative start-ups, through its technology network, as well as its channel and distribution partners. The launch would appear to be one of HP’s strategies to counter the negative impact which declining PC sales is having on its traditional business, entering into new markets through potential acquisitions as opposed to organic growth.

HPE targets SMB hybrid cloud market

cloud-hubHPE has launched ProLiant Easy Connect Managed Hybrid, a new offering designed for small and mid-sized businesses, educational institutions and branch offices.

As part of the offering, customers will receive an on premise server, as well as public cloud computing capabilities through HPE. The proposition is the first from the company’s Easy Connect portfolio, which will eventually be a collection of product offerings with the aim of making cloud adoption easier for smaller organizations.

“Small businesses want to focus on growing their core businesses, not spending their limited resources on deploying and managing IT,” said McLeod Glass, GM for SMB solutions at HPE. “This new solution is part of a broad HPE initiative, inspired by the unique needs of small and mid-sized businesses, to deliver innovative solutions that are easy for our channel partners to sell and easy for our customers to use.”

While the cloud market has to date focused on implementation in enterprise size organizations, there have been a number of plays for the SMB market in recent weeks, including from Go Daddy and Microsoft. Although the SMB market does not offer the same level of contracts as those in enterprise scale organizations, it could turn into a potentially lucrative segment. Research from BCSG highlighted that adoption levels are rising healthily.

SMB statsThe finding stated 64% of SMB’s are currently using at least one cloud solution to help them run their business, though the average number of cloud services was in fact three. 78% of the market is considering increasing the number of services they currently consume and by 2017, BCSG estimate that 88% will be using at least one service, and the average number of services consumed per company will be seven.

The ProLiant Easy Connect Managed Hybrid is marketed on the idea of simplicity of use for the customers, through it is not clear how large or significant the Easy Connect portfolio will be on the whole.

“Organizations of all sizes are transforming their IT to a hybrid mix of private and cloud technology,” said Nick East, co-founder and CEO of Zynstra, who’s virtualisation and cloud management software will be used in the offering.

“Together with HPE, we’ve done the heavy lifting for SMBs and their IT partners. This small form factor solution delivers the right business value without compromise or complexity, and is integrated with and managed centrally from the cloud. It’s how IT should be.”

HPE and Blackstone agree $825 million deal for Indian IT services business

Plant in front of a creative working deskHPE has announced its intention to sell its majority stake in Mphasis in a deal with Blackstone, believed to work in the region of $825 million.

The company said that Blackstone has agreed to purchase at least 84% of its stake in Mphasis for INR 430 per share. Blackstone will purchase the maximum amount of the remaining 16% stake that is permitted by Indian securities laws and subject to the outcome of a mandatory tender offer between signing and closing. Assuming the values are correct, HPE’s in the Indian business would be values in the region of $825 million.

Indian IT Services company Mphasis has been part of the HPE group since 2008, after its parent company EDS was wholly acquired by HPE. The company had 23,000 staff at the end of the quarter, delivering both business process outsourcing and IT services.

“While our financial relationship is changing, the business and commercial relationship with Mphasis remains an important part of our service delivery strategy,” said Mike Nefkens, GM of HPE Enterprise Services. “We remain committed to our strategic partnership with Mphasis and to providing our customers with the high level of service and support they expect from HPE.”

It is believed that the deal represents a move from HPE to remove business components which do not line with future business objectives. In recent weeks, the company has made moves to improve its position in a number of markets including cloud infrastructure equipment market and machines learning. While the deal may represent HPE moving away from the Indian IT services market, it will not affect the commercial relationship between the two companies.

HPE plans to renew the current master services agreement with Mphasis for another five years in connection with this transaction. It is estimated that HPE business accounted for 24 percent of the Indian company’s total revenue of rupees 15 billion in the fourth quarter of 2015.

HPE holds off Cisco for cloud infrastructure top spot

HPE street logoFindings from Synergy Research Group have HPE as the number one provider in the cloud infrastructure equipment market, narrowly outperforming Cisco over the course of 2015.

Total revenues for the cloud infrastructure equipment segment reached over $60 billion in 2015, with HPE accounting for just over 12%, and Cisco just under. Dell, Microsoft and IBM complete the top five, each controlling about 7% market share.

“There continues to be particularly impressive growth in the public cloud infrastructure market as AWS and other cloud operators are having tremendous success in attracting enterprises to their ever-expanding range of service offerings,” said Jeremy Duke, Synergy Research Group’s founder. “But enterprises too are buying ever-larger volumes of infrastructure to support their private or hybrid cloud deployments. Across the board there is a massive swing away from enterprises running workloads over more traditional and inflexible IT infrastructure.”

Synergy’s research showed between Q4 2014 and Q3 2015 total spend on infrastructure hardware and software to build cloud services exceeded $60 billion. Spend on private cloud accounted for more than 50% of these revenues, though public cloud is growing at a faster pace. HPE currently leads the private cloud space, with Cisco in second, however the roles are reversed for the public cloud segment.

While HPE and Cisco remain dominant in the server and networking segments, both companies have been releasing a number of new products in recent months to diversify their offering. Last week, HPE launched its ‘machine-learning-as-a-service’ on Microsoft Azure, which combines 60 API’s to provide machine learning capabilities. While HPE is seemingly capitalizing on the growing ‘as-a-service’ trend, Cisco is focused on its cloud-based collaboration service, Cisco Spark, which was launched with Verizon recently.

Market share graphMicrosoft features in the list due to its position in the server OS and virtualization applications market, where as Dell and IBM have demonstrated strong offerings in a broad number of cloud technology markets. Servers, OS, storage, networking and virtualization software combined accounted for 95% of the Q4 cloud infrastructure market.

While hardware and software to build cloud services revenues exceeded $60 billion, other areas of the industry demonstrated stronger growth. Public IaaS/PaaS services had the highest growth rate at 51%, followed by private & hybrid cloud infrastructure services at 45%.

“In many ways 2015 was the year when cloud became mainstream. Across a wide range of cloud applications and services we have seen that usage has now passed well beyond the early adopter phase and barriers to adoption continue to diminish,” said Duke. “Cloud technologies are now generating massive revenues and high growth rates that will continue long into the future, making this an exciting time for IT vendors and service providers that focus on cloud.”