How Acquisitions Are Helping HPE Drive Revenues


Apr. 6 2018, Updated 7:33 a.m. ET

Stabilization of 3PAR

Hewlett Packard Enterprise (HPE) stated that its 3PAR vertical is stabilizing after facing pressures in the last two to three quarters. HPE acquired 3PAR Inc. in 2010. 3PAR manufactures data storage products such as disk arrays and storage management software. 

HPE has reportedly made some changes to its go-to-market perspective. The firm previously didn’t have enough specialists to drive revenues. This mix has been changed, and the vertical has been combined with Nimble Storage.

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Nimble Storage

HPE acquired Nimble Storage in 2017 for a premium of more than 45.0%. Nimble Storage provides storage and analytics services to enterprises. More than 10,000 enterprises use its storage and analytics solutions, and the firm has brought a huge pool of talent to HPE. Nimble Storage enables companies to gain insights into their storage consumption and assists in the decision-making process for storage requirements.

Networking revenue growth

HPE has observed growth in its networking revenues after the acquisition of Aruba in 2015. HPE’s Edge business, which includes networking revenues, saw 9.0% YoY (year-over-year) revenue growth in fiscal 1Q18, driven by strong demand in campus switching. 

HPE expects to see revenue growth in the Wireless vertical in fiscal 2Q18, as the company is looking to gain momentum after a slow fiscal 1Q18. HPE confirmed that its wireless LAN (or WLAN) sales are facing pressure due to rising competition from networking peers Cisco Systems (CSCO), Brocade-Ruckus (RKUS), Ubiquiti, and China’s (MCHI) Huawei.

HPE recently announced the acquisition of South Africa’s Cape Networks. This company focuses on Wi-Fi networks and uses sensors to provide service assurance, test networks, and application performance.


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