Storage and networking led the decline in Enterprise Group revenues
On May 21, 2015, HP announced its fiscal 2Q15 results. In 2Q15, HP’s (HPQ) Enterprise Group reported $6.56 billion in revenue, down from $6.63 reported in 2Q14. Quarter-over-quarter, revenues fell by 6%, and YoY (year-over-year), by 1%. Fewer sales of HP’s storage and networking products led the decline in Enterprise Group revenue.
As we’ve seen previously in this series, HP acquired Aruba Networks to enhance its position and market share in the wireless networking space.
Storage revenue came in at $740 million, a YoY decline of 8%. Networking revenue stood at $556 million, a YoY decrease of 16%. Keep in mind that HP sold its 51% stake in H3C to China-based Tsinghua Holdings in May 2015. This would have had an impact on its networking operations and revenue.
HP registers positive growth in global external storage space
The above chart shows the market share held by players in the global external storage space. With a 31% market share, EMC is the leader in this space. Of the top five players—EMC (EMC), NetApp (NTAP), IBM (IBM), Hitachi Data Systems, and HP—HP was the only player that registered positive YoY growth of 1.6% in its storage revenues in 2014. HP’s market share increased from 9.4% in 2013 to 9.6% in 2014, while the other top four players saw their market shares shrink in 2014 versus 2013.
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