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May 30, 2018

HP is doing better without some customers

HP Q2 Revenues 2018
Hewlett-Packard Enterprise released an earnings report last week. The release covered the first full quarter since Antonio Neri took over as CEO, assuming command from retiring Meg Whitman. The numbers looked good to investors. The customers HPE's achieved are helping to lift the ship, even while some of you left the HP fold long ago.

It's easy to ignore HP now, if you're homesteading on 3000 iron either virtual or physical. The vendor wasn't able to deliver patches to support companies like Allegro at the start of this year, so the last remaining deliverable for MPE/iX has dropped off the product offerings. The patches were free, unlike enterprise patches for HP's Unix, NonStop, and VMS systems. Failing to deliver HP 3000 products long ago ceased to impact HP's quarterly revenues and earnings.

We care, however, about how Hewlett-Packard Enterprise fares — for the sake of the readers who still use HP's other enterprise gear. The IT managers who run multi-platform shops care about things like HP Next, or at least HPE hopes so. HP Next is "our company-wide initiative to re-architect HPE to deliver on our strategy and drive a new wave of shareholder value," Neri said when the numbers appeared in the evening of May 22. "It is all about simplification, execution and innovation."

Many things have changed about enterprise computing since HP last sold a 3000 in 2003. One big change is the dissapearance of hardware and operating system bedrock. In the 3000's heyday, things were defined by OS and iron. It's all too virtual to see those markers now. HP seems to be doing better without some of you because you didn't want to buy what's sold as enterprise computing. 

Better? Revenue of $7.5 billion in Q2, up 10 percent from the same quarter of 2017. Earnings were better, 34 cents a share in a market "beat," above the outlook range of 29-33 cents a share. The company calls its computing business Hybrid IT now, and the business was up 6 percent over the same quarter of 2017.

Not so many years ago, when HP wasn't doing this well, you could drill into its presentations for the quarters and find server sales. Not anymore. Now the news is about Cape Networks and buying Cape "to expand AI-powered networking capabilities with a sensor-based network assurance solution that improves network performance, reduces disruptions and significantly simplifies IT management for our customers." That out of a CEO's statement about new business, so it's supposed to be opaque.

Hearing things like "composable infrastructure offerings" might make a 300 homesteader roll their eyes, not to mention the experts who still support a 3000. My spell checker thinks composable isn't even a word, let alone a product attribute.

But like we said earlier, there's a reason to care about HPE's fate. The company's success props up the idea that a vendor that builds physical products and software continues to matter in 2018. Years ago, the concept of a datacenter that was fully virtual was like the paperless office. It seemed like science fiction, but companies still hungered for it.

HP's still in the futures business, trying to catch up with cloud offerings from Cloud Technology Partners. Neri said that HP did well with an acquisition of RedPixie. "RedPixie is a UK-based cloud consulting company, with deep Microsoft Azure expertise, which perfectly complements CTP’s strong AWS relationship." That's a relationship designed to move applications off classic servers like HP-UX or VMS and into Amazon Web Services cloud computing. Those particular moves are a lot like the effect a 3000 company gets from placing an MPE/iX virtual machine into a cloud provider.

Amazon's potential to host HP-UX apps provides some future for that platform that never did receive a port to Intel architectures. There are levels of abstraction there to probe for a homesteader who's still got an MPE/iX application to carry away from HP's machines. That might be far away from your position today. Hewlett-Packard Enterprise is counting on your interest in the years to come, though. You might be able to help them do better once you leave the OS bedrock behind. 

07:13 PM in Homesteading, News Outta HP | Permalink

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