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September 04, 2017

HPE takes a breath after its software flip

HP-UXAs the company which was once the vendor of HP 3000s and MPE, Hewlett Packard Enterprise has now merged its software operations with British software company Micro Focus International. Not included in the transaction that closed this week: enterprise operating systems. The question to be answered over the next few quarters is whether the enterprise customer cares about infrastructure beyond their choices for cloud computing. Those who've adopted HP-UX should watch the HPE naming-space closely.

HP recently floated a survey by way of the Connect user group, quizzing customers about a name for a new version of an enterprise OS. HP 3000 managers know the OS by its previous monicker, HP-UX. This OS has a growing problem—a lack of compatibility with Intel x86-based computers. HP means to sell enterprise strategists on the merits of what it calls HPE Portable HP-UX.

The new name represents an old idea. HP's been engineering the second coming of HP-UX for a long time. Our first reporting on the new generation of HP's Unix started late in 2011. HPE Portable HP-UX is supposed to "suggest a technology that completely emulates a hardware system in software," or perhaps, "Conveys the idea that HP-UX is now available anywhere." These were the multiple choices on the HP naming survey.

HP says the latest iteration of this concept will "enable re-hosting of existing Itanium HP-UX workloads onto containers running on industry standard x86 Linux servers." A container, in this idea, is a portion of Linux devoted to the carriage of an older operating system. Network World surmised in May that the containers "will likely pull HP-UX workload instances and put them in Linux as micro-services. Containers are different from virtualization, which require hypervisors, software tools, and system resources. Containers allow customers to maintain mixed HP-UX and Linux environments and make the transition smoother."

Network World said the technology offers an escape from an aging OS. All software ages, but it ages more quickly when the vendor adds layers to run it. An emulation or virtualization strategy is expected from third parties. When a vendor creates these layers for its own OS, it's a sign of the end-times for the hardware. HP's Unix customers have to take their applications elsewhere.

Virtualization has been a benefit for customers who continue to rely on MPE/iX applications. Stromasys Charon HPA has preserved the most essential element of the platform, the OS. The point was not to move away from an HP-designed chip. PA-RISC is preserved. In contrast, HPE Portable HP-UX is moving to x86 because the future of Itanium now has a final generation. Kittson is the last iteration of Itanium. It puts HP-UX in a worse spot than MPE/iX. HP-UX has become an OS that Hewlett-Packard has disconnected from the HP chip it built to run it.

While the company that was once called HP has added one letter to its name, it continues to pare away its non-essential lines. Enterprise software is the latest to go. Excising the software from HPE isn't news, so it won't relate to the market's reaction Wednesday to HPE's third-quarter report. That doesn't mean HPE Q3 results won't make waves, though.

None of this software business is in the same league as the products now sent to live in the Micro Focus product lineup. The software that's just been split off from HP first arrived at Hewlett-Packard when, in 2011, HP acquired the British firm Autonomy for $11 billion. Investors were not thrilled at the time, but the biggest loser was probably CEO Leo Apotheker. CEO Leo lost his job even before the Autonomy deal could close. HP ended up taking an $8.8 billion write-down on it. HP's deal of this week at least restored that loss to the bottom line.

“With the completion of this transaction," said CEO Meg Whitman, "HPE has achieved a major milestone in becoming a stronger, more focused company, purpose-built to compete and win in today’s market. This transaction will deliver approximately $8.8 billion to HPE and its stockholders.”

09:45 PM in Migration, News Outta HP | Permalink

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