HP officially splits into two companies, India business to have strong uptick

Almost a year ago HP announced that it is splitting into two companies- Hewlett Packard Enterprise (HPE) will take on to next generation of technology infrastructure, software and services mandates for what HP calls it the New Style of IT opportunities. Meanwhile HP Inc. taking on PC and the Printer business.

And yesterday (November 2) marks the beginning of HP’s life as two separately listed Fortune 50 companies with two CEOs. With this spun off, HPE is taking on to market with $53bn in annual revenues and it began trading yesterday with ‘HPE’ ticker in the NYSE.

HP is extremely bullish about this separation and believes that its enterprise play is going to be become very critical and focused taking on the next gen mandates in SMAC.

In a press briefing in Bengaluru yesterday, the head of HPE in India, Neelam Dhawan, VP & GM, Enterprise Group and Country MD, HPE, India says, “ Enterprise computing is getting complex by the day and we believe agility is the key to addressing the demands of the new style of business that calls for the new style of IT. So clearly we need differentiated IT that ushers in agility and at the same time greater cost savings.”

"HP today is in the unique position to seamlessly blend all the key elements of IT into one cohesive whole thereby providing an integrated computing framework that is agile and be able to address the demands of technology in India," added Neelam Dhawan.

Dhawan is also bullish about HPE growing more than the industry average ( 7% - 8%) and is looking at strong double digit growth rates. Much of her optimism stems from the huge software and services arsenal HP has in its kitty.

Speaking to DATAQUEST to a question about the growing consolidation in the industry (Dell-EMC being the latest one), Dhawan said, “ I agree it’s a biggest of its kind, but I believe that the integration of EMC’s assets on to Dell will at least take 18 months, and that gives players like HP  additional leverage and in enlisting new mandates. Also they face the biggest challenge of defining the product roadmap. We will definitely have immediate short term gains.”

HPE is also expected to ramp up its campus hiring initiatives and is embarking on massive reskilling of its sales force to align its competencies to the new style of IT.