HPE Reportedly Considering Selling Software Units
The company is in the early stages of a plan that could result in such units as Autonomy, Vertica and Mercury Interactive being sold, a report says.Hewlett Packard Enterprise officials reportedly are considering selling software assets like Autonomy and Vertica Systems as they look to streamline the company to meet changing customer demands brought on by such trends as the cloud, the proliferation of mobile devices and the Internet of things. According to a Bloomberg report citing unnamed sources, company executives are in the preliminary stages of the sales process and that the effort may not result in any deals. Under consideration are businesses that have grown within HPE through acquisitions over the past several years, including Autonomy, Vertica and Mercury Interactive. HPE spokespeople have declined to comment on the report. A sale of the company's software assets would continue a reorganization of the company since Hewlett-Packard split in two in November 2015. The breakup of the tech giant created two new companies: Hewlett Packard Enterprise (HPE), which sells enterprise IT solutions, and HP Inc., which deals in PCs and printers. CEO Meg Whitman said that separating the enterprise and PC businesses would enable each to grow more quickly in their highly competitive markets. In addition, it also allowed the enterprise business to distance itself from the contracting global PC market, which has seen shipments drop consistently over the past four years.
More recently, HPE officials in May announced they were spinning out the company's enterprise services business as a separate entity and merge it with Computer Science Corp. (CSC). The move would be an $8.5 billion boon to HPE, according to the company. The goal of the deal—which is expected to be completed by March 2017—is to enable HPE to keep its hand in services but reduce the business costs associated with it. HPE shareholders will own stakes in both HPE and the combined services company.