Intro, HP Discover Barcelona 2014 with John Furrier and Dave Vellante
Despite recent moves to shift gears, Hewlett-Packard Co. still has a long way to go in its turnaround. In their intro segment for HP’s annual Discover event in Barcelona this week, theCUBE co-hosts Dave Vellante and John Furrier discussed the technology stalwart’s recent decisions, from splitting their enterprise business from the PC and printer consumer business, to their focus on software and on providing Autonomy on a Software as a Service model.
“HP has to shrink in order to grow, in order to thrive. That’s exactly what’s happening,” said Dave Vellante. The $112 billion revenue for the fourth quarter is down significantly, and was described by Meg Whitman as a “decelerating rate of decline.”
Vellante pointed out HP has a low margin business, a 25 percent gross margin business. In contrast, Oracle, who also sells hardware, has an 80 percent gross margin which is driven by the software business, NetApp is at 63 percent, and even IBM has a 49 percent margin. Since Meg Whitman came on, the stock is up 70 percent. “The Street sees the turnaround is working. HP is still not where it needs to be,” Vellante said.
“Consumption of IT and the consumption of technology is changing, and that is changing HP very dramatically,” Furrier jumped in. “HP has to evolve into an end to end platform for their customers” in order to enable success, not to be an inhibitor to them.” As far as cloud trends are concerned, Furrier stated that “HP has to have their own cloud.” Venture capitalists and experts don’t trust Amazon, they don’t know what cards they are holding, he explained. VC’s prefer OpenStack startups because they are easier to predict.
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Intro - HP Discover Barcelona 2014 - theCUBE - #HPDiscover
Intro, HP Discover Barcelona 2014 with John Furrier and Dave Vellante
Despite recent moves to shift gears, Hewlett-Packard Co. still has a long way to go in its turnaround. In their intro segment for HP’s annual Discover event in Barcelona this week, theCUBE co-hosts Dave Vellante and John Furrier discussed the technology stalwart’s recent decisions, from splitting their enterprise business from the PC and printer consumer business, to their focus on software and on providing Autonomy on a Software as a Service model.
“HP has to shrink in order to grow, in order to thrive. That’s exactly what’s happening,” said Dave Vellante. The $112 billion revenue for the fourth quarter is down significantly, and was described by Meg Whitman as a “decelerating rate of decline.”
Vellante pointed out HP has a low margin business, a 25 percent gross margin business. In contrast, Oracle, who also sells hardware, has an 80 percent gross margin which is driven by the software business, NetApp is at 63 percent, and even IBM has a 49 percent margin. Since Meg Whitman came on, the stock is up 70 percent. “The Street sees the turnaround is working. HP is still not where it needs to be,” Vellante said.
“Consumption of IT and the consumption of technology is changing, and that is changing HP very dramatically,” Furrier jumped in. “HP has to evolve into an end to end platform for their customers” in order to enable success, not to be an inhibitor to them.” As far as cloud trends are concerned, Furrier stated that “HP has to have their own cloud.” Venture capitalists and experts don’t trust Amazon, they don’t know what cards they are holding, he explained. VC’s prefer OpenStack startups because they are easier to predict.
