Too top-heavy? HP Enterprise is reportedly mulling selling its software assets, including its Vertica platform, as the market moves to the cloud and SaaS.
Hewlett Packard Enterprise is reportedly considering selling some of its software assets, including its data analytics platform Vertica, according to Bloomberg.
The sale would also potentially include Autonomy and Mercury Interactive. But a ”sale process is in the preliminary stages and may not result in any deals,” according to Bloomberg, which cited unnamed sources.
“HPE has struggled to rein in expenses and reinvent itself amid the shifting technology landscape, and shedding underachievers has been part of the plan. Autonomy, Mercury and Vertica were all large-dollar purchases that have thus far failed to produce much ROI for HPE,” according to CIODive.
Hewlett Packard’s CEO, Meg Whitman, has been pushing the company to become more nimble to take on rivals such as Dell, according to Bloomberg. HP Enterprise, which focuses on business IT services and software, split from HP last year.
HP posted $4.5 billion in net earnings in 2015, down about $450 million from the previous year. According to the company’s 10-K report to federal regulators, HP stated it incurred about $1.6 billion in costs in 2015 due to the separation of HP Enterprise. Revenue from software was down due to currency impacts and “weak license growth.”
The company stated it faces several challenges, including the transition to cloud computing and software-as-a-service. “To be successful in addressing these challenges, we must improve our go-to-market execution with multiple product delivery models which better address customer needs and achieve broader integration across our overall product portfolio as we work to capitalize on important market opportunities in cloud, big data and security.”
A sale of HPE would follow in the footsteps of Dell, which will be acquired by hedge fund group Elliot Management and buyout firm Francisco Partners.