Menu
​100+ deals change hands as Hewlett Packard Enterprise exploits Dell’s multi-billion EMC merger

​100+ deals change hands as Hewlett Packard Enterprise exploits Dell’s multi-billion EMC merger

“We’re capitalising on the fact there's a lot of integration challenges and a lot of things going on at Dell and EMC.”

Hewlett Packard Enterprise is capitalising on the complexity and confusion of Dell’s multi-billion dollar acquisition of EMC, taking over 100 partner and customer deals away from its tech rival during the last quarter.

In a wide-ranging interview with CNBC, CEO Meg Whitman claims the proposed $US67 billion merger - set to close between May and October this year - is directly impacting Hewlett Packard Enterprise’s business for the better, as both companies head down different strategic paths.

“In the last quarter, we had about 107 deals that we actually took from Dell and EMC, whether they were partner deals or customers,” Whitman says.

“We’re capitalising on the fact there's a lot of integration challenges and a lot of things going on at Dell and EMC.

“I think we've got another good year and a half to two years to capitalise on that but I would say fundamentally, these two companies have taken entirely different strategies.”

After officially separating from HP Inc on November 1, Whitman says Hewlett Packard Enterprise has become a “fast and nimble” company, claiming that Dell’s increasing debt load to be a barrier to innovation.

“We chose to get smaller in the context of this rapidly evolving market, they chose to get bigger,” Whitman says.

“We chose to delever the company, they will now have $US60-$US65 billion of debt on the company. We are investing in new technology, they're doubling down on old technology with a big cost take out play.

“In many ways, you have to remember that a big shareholder of this new company is a private equity company. What do private equity companies do? They rip cost out.

“We're investing in Research and Development and new technologies so there’s two entirely different strategies. I like our strategy.”

While Whitman isn’t the only tech CEO to take aim at Dell during recent months - nor will she be the last - this round of digs has so fair failed to trigger a response from Dell CEO Michael Dell, who has been quick to dispute such claims in the past.

On the record, Dell’s chief branded HP “a great VMware partner” at Dell World in October 2015, before adding; ““I think she got some of the facts wrong. We’ll let the facts speak for themselves.”

But for Whitman, the facts speak for themselves.

“That’s what they are doing,” Whitman told CNBC, “they are doubling down on a lot of older storage products, server products, and then they are going to take cost out.

“Their major objective has got to get cost out of that company so that they can begin to pare down that debt.”

Despite Whitman’s preference for organic growth, closer to home Hewlett Packard Enterprise is widely tipped to pursue mergers and acquisitions opportunities within the coming year - particularly in relation to the company’s cloud strategy.

“We bought Aruba Networks,” Whitman adds. “It’s complementary technology that we can put through our distribution system.

“We are all in for doing those kinds of acquisitions and we have made some small acquisitions like ConteXtream for our open NFV business in the telco space. We will continue to do tech tuck ins.”

For Whitman, a dollar invested in organic innovation is “about the best dollar I have” in normal circumstances, “because you end up with a consistent architecture.”

Referring to the company’s three-par all flash storage array. Whitman says the tech giant now has a “common storage architecture” from high-end storage, to mid-tier, to all flash, to low end.

“What that means for the customer is lower total cost of ownership, lower service cost, simplicity of operating our storage product,” Whitman adds.

“As opposed to some of our competitors who have different architectures because they have acquired those products overtime.

“While in the near-term acquisitions can buy growth, you end up with a bit of a frankenstein on the back end if you don't change around the architecture.”


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags CloudsecurityDellData CentrestorageemcMeg WhitmanHewlett Packard Enterprise

Featured

Slideshows

Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Show Comments