The revenue from Hewlett Packard Enterprise’s (HPE) Enterprise Group segment rose 7% YoY (year-over-year) in fiscal 2Q16 to $7.1 billion. It rose 7% YoY on a constant currency basis. It had a non-GAAP (generally accepted accounting principles) operating profit of $817 million, or 11.7% of revenue.
The Enterprise Group’s revenues grew in each of the hardware business units and in every geography. Tim Stonesifer, the chief financial officer of HPE, stated, “The Enterprise Group had a strong quarter with excellent top line performance. Our sales motion is hitting its stride aided by the seamless launch of the HPE brand and our marketing efforts. Revenue was up 7% year-over-year or 10% in constant currency and grew in all product groups.”
The server revenue rose 7% YoY, whereas storage revenue rose 2% YoY in fiscal 2Q16. Networking revenues rose significantly by 57% YoY.
HPE’s project with Woolworths Limited
In fiscal 2Q16, Hewlett Packard Enterprise bagged a project with Woolworths Limited, Australia’s (EWA) largest retail company. HPE provides a solution based on the ConvergedSystem 900 that provides access to real-time data. This enables enterprises to make critical business decisions immediately.
HPE’s enterprise portfolio is one of the best and has been driving strong customer traction in the last few years. HPE is the leading infrastructure provider of SAP HANA (high-performance analytic appliance) with almost twice the shipments over the next competitor.
Hewlett Packard Enterprise accounts for 3.2% of the First Trust ISE Cloud Computing Index Fund (SKYY). The other top holdings in this ETF include EMC (EMC), Google (GOOG), and Facebook (FB). They account for 4.1%, 4%, and 4.4%, respectively, of SKYY.
In the next part of this series, we’ll look at HPE’s Enterprise Services segment.