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HPE’s incoming sales chief opens up about what’s next for the company

HPE’s incoming sales chief opens up about what’s next for the company

Phil Davis talks about his new role, the company’s direction and its technology blueprint

Phil Davis is the man of the moment as the newly appointed chief sales officer at Hewlett Packard Enterprise (HPE).

The tech giant revealed in June it would align its sales teams into a single global sales organisation within its Enterprise Group in a bid to drive better sales execution while optimally serving its global customers.

In August, the company said that Davis, its head of storage sales in Asia Pacific and Japan, would be responsible for sales in the APJ region. From the beginning of November, Davis will step into the role of chief sales officer for the tech company.

The structural changes of the global sales organisation at HPE are also set to come in on 1 November, and are expected to be a game changer, as the tech giant becomes micro-focused, more nimble and close-to-customer in the era of digital transformation.

Davis, in an email correspondence with IDG’s Yogesh Gupta, talked about his new role, the company's direction and its technology blueprint.

Here are the highlights:

What’s the prime objective of HPE Next and how does it translate for HPE’s employees, channel partners, and end customers?

HPE Next is a program we kicked off in Q2 following the completion of our enterprise service business spin-off. The goal of the program is to create an organisation that is precisely built to compete and wins in the marketplace. 

We have three guiding principles driving the program. First, the customer is a priority as everything we do has to help benefit them and partners. We need to be focused in terms of the markets and the portfolio we develop. And third, it is all about simplicity.

We believe by simplifying everything – from business processes to organizational layers – we will become closer to our customers and partners, easier to do business with and better to work for.

How will the reorg (from three main regions into 11 smaller geographies) announcement benefit HPE over the next 12 months? It is different from your competition’s go-to-market (GTM)?

We strongly believe our strategy of becoming more focused, simple and nimble is the right way to win in the market today. Our intent is to concentrate resources on the countries that drive the vast majority of the business today and represent the greatest growth opportunities going forward.

Technology continues to change at lightning speed and our strategy is directly aligned with what our customers are asking for and where the market is moving. You can see this strategy paying off in our strong Q3 results.

Phil Davis - incoming chief sales officer at HPE
Phil Davis - incoming chief sales officer at HPE

Will the new sales structure result in thousands of jobs cut across HPE especially around the middle to senior sales positions?

HPE Next is about re-architecting the company to be precisely built to compete and win in our markets. We are optimising both the operating model and the organisational structure to simplify how we work, including both business processes and operations.

By simplifying our customer-facing organisation, we will bring even more accountability and decision-making closer to the customer thus improving our speed and agility as a company.

It is reported that HPE is expected to save close to US$450 million globally with the reorg. Is it true?

I would point you to what our chief financial officer, Tim Stonesifer, said on our Q3 earnings call: Based on our current assessment, we’re committed to US$1.5 billion of gross savings over the next three years. We will provide additional details at our Analyst Day in October.

Pointnext is a big bet by HPE, any leadership changes or GTM approach for that division this year?

Pointnext is core to HPE’s strategy: To make hybrid IT simple; to power the Intelligent Edge; and to provide the services to make it all happen.

As digital transformation continues to disrupt every industry, customers have turned to HPE as a trusted partner to help them navigate this new world.

HPE Pointnext will be the customer-centric, insights-driven and outcome-oriented services organisation that our customers need. Ana Pinczuk, who joined the company in February 2017, will continue to lead the business globally as Senior VP and GM of Pointnext.


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