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Why Hewlett Packard Enterprise Expects Growth in Hardware Business

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Server and storage business

According to Hewlett Packard Enterprise (HPE), each of its hardware business units performed well in fiscal 1Q16. The firm’s server business maintained strong operating margins while HPE also continued to make research and development investments. The CEO of HPE, Margaret Whitman, stated, “While we won’t chase share for share’s sake, we continue to see significant growth opportunity ahead as the clear market leader with the most comprehensive portfolio of offerings, from mission-critical and high-performance computing to our new IoT and Cloudline solutions.”

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Driven by triple-digit constant currency growth in all-flash, HPE posted record revenues for 3PAR in fiscal 1Q16, which grew at three times the market rate. With its industry-leading all flash product and channel broadcast reach, Hewlett-Packard Enterprise expected to gain market share for the ninth quarter in a row in 4Q15.

The other top players in the all-flash segment include heavyweights such as EMC (EMC), IBM (IBM), and NetApp (NTAP), which account for over 40% of the total market.

HPE to introduce new technology to its server portfolio

In March 2016, HPE is looking to refresh its server portfolio by including a game-changing new technology called Persistent Memory. This will enable an ecosystem of new applications to support non-volatile memory.

The next article will analyze the trends in HPE’s networking and technology services business segment. IBM constitutes 3.5% of the iShares US Tech ETF (IYW).

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