Category Archives: Meg Whitman

HP suffers across the board as Enterprise Group flatlines

HP had a tough Q3 2015

HP had a tough Q3 2015

HP reported heavy losses when it revealed its third quarter 2015 financial results this week, with the enterprise IT giant raking in net revenues of $25.3bn, down 8 per cent year on year.

PC revenues were down 13 per cent year on year, printing revenue down 9 per cent and software down 6 per cent. In cloud, it’s as-a-service business was down 4 per cent.

The company’s enterprise services group also took a big tumble, with revenues dropping 11 per cent, infrastructure technology outsourcing declining 11 per cent, and application and business services revenues dropping 7 per cent.

The results were well below analyst expectations.

“HP delivered results in the third quarter that reflect very strong performance in our Enterprise Group and substantial progress in turning around Enterprise Services,” said Meg Whitman, chairman, president and chief executive officer, HP. “I am very pleased that we have continued to deliver the results we said we would, while remaining on track to execute one of the largest and most complex separations ever undertaken.”

In a call with analysts this week Whitman tried to allay any fears of its stated strategic direction – the company is on track to split up later this year – and said it saw growth in key pockets of SaaS solutions, but that this growth was offset by weaker big data and IT management revenues.

“We remained focused on aligning our portfolio to the Hewlett-Packard Enterprise strategy and driving software-led integrated solutions across EG and ES while addressing the challenges around the market shift to SaaS and internal execution challenges,” she said.

“We’ve also refined our go-to-market over a longer period of time. And part of the challenge we had prior to me was the fact that we changed our go-to-market so many times. Every CEO had a different idea about how to go to market. We just locked on one and we’re driving it.”

“There might be things we can do to optimize, but we’ve got a strategy and we’re driving it. And I think that’s given the sales force and customers a lot of confidence. And we’ve all been out with a lot of customers. The first couple years was more internally focused. We’ve been out with customers. I would say our customer and partner confidence is at an all-time high. And the backlog, by the way, going into fourth quarter is the highest backlog I’ve had since I’ve been at the company. So all signs are good, but we remain on constant alert,” she added.

HP exec leading the Enterprise split leaves company

Bill Veghte hasn't revealed where he's heading next

Bill Veghte hasn’t revealed where he’s heading next

Bill Veghte, executive vice president of HP’s Enterprise Group (EG) and the man leading HP’s corporate divorce from the enterprise business side will be departing the company later this summer to pursue a new opportunity, the company announced this week.

The move comes barely a month after Tom Joyce, the company’s former vice president of global development and M&A lead, left HP for Dell.

Veghte previously served as chief operating officer, chief strategy officer and executive vice president of software at HP before taking on the Enterprise Group split lead, and will be replaced by Chris Hsu, who will assume the role of COO for Hewlett Packard Enterprise upon separation.

Antonio Neri, who has been serving as leader of the Enterprise Group (while Bill focused primarily on the separation efforts) and previously held leadership positions in the company’s server and networking technology divisions, will officially take over the role as Executive Vice President and General Manager.

“The decision to leave a company and people you are passionate about is never an easy one,” Veghte said.

“It has been a privilege working with Meg and a great leadership team as we transform Hewlett Packard to help customers on their journey to the New Style of IT. HP is equipped to take the business to new heights with great leaders like Antonio Neri and Chris Hsu and the progress we have made over the last 4 years,” he added.

Meg Whitman, chairman, president and chief executive officer of HP said: “From the moment he arrived at HP, Bill has made a huge difference. He brings energy, insight, and leadership to everything he does. I am grateful for all he did to help me lead HP through the turnaround and into the separation. I know Bill will continue to enjoy great success in the years to come.”

HP is just over midway through splitting its PC and printer business from its enterprise services and technology business, with the hopes of having everything done and dusted by November – the beginning of its 2016 fiscal year.