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Digital transformation, Internet of Things poised to drive a leaner HPE

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With a full year as an independent company under its belt, Hewlett Packard Enterprise Co. will convene its Discover Europe user conference this week in London as an unquestionably leaner company.

Whether it’s meaner is still to be determined.

In reporting revenues that slightly underperformed expectations last week, HPE executives said all the changes that were necessary to slim down the company and position it for growth have been completed. Key events during its first year were the spinoff of its services business to Computer Sciences Corp. and sale of most of its software holdings to Micro Focus International plc.

However, the company also issued somewhat disappointing earnings guidance for the current quarter and said sales of its core integrated server business have lagged plans. Nevertheless, the company was bullish about the future, saying its high performance computing, hyper-converged server, storage and networking businesses are booming.

HPE remains the world’s largest server vendor worldwide, with 25.4 percent market share, according to International Data Corp. Its strategy, said Wikibon Chief Analyst David Vellante, “is to be the arms dealer to the cloud.” (Wikibon is a sister company of SiliconANGLE).

Keynote sessions at this week’s conference (* disclosure below) won’t involve much about servers, however. Rather, they’ll focus on bigger strategic plans. On Tuesday, Chief Executive Meg Whitman is scheduled to spotlight companies that have embraced digital transformation and “hybrid IT,” which is a catch-all…

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