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Hewlett Packard Enterprise and HP Inc.: Where do we go from here?


In late 2015, the world witnessed the split of HP, creating two separate entities providing siloed enterprise- and consumer-level services. Thus, 2016 was the first year that the two resulting companies – HP Inc and Hewlett Packard Enterprise – stood on their own.

Recent months have seen considerable changes and growth for both companies, and 2017 promises to be just as big for both businesses, helping to shape the future of not only these organizations, but the technology industry overall. Let’s take a look at how far HP Inc. and Hewlett Packard Enterprise have traveled in 2016 and what the coming months have in store, according to sector experts.

HP Inc.: Rising stock and expanding reach

Following the split, HP Inc. saw numerous headlines of its own, particularly surrounding the expanded services the business would come to offer. CRN noted that among this year’s big stories, HP Inc. news revolved around:

  • Printing services: 2016 saw HP Inc.’s acquisition of Samsung’s Printer business, which helped grow the company’s service portfolio. The organization also captured attention with a move into the 3-D printing industry courtesy of its JetFusion 3-D, propelling the business into a new and lucrative marketplace.
  • Mobile: HP Inc. also introduced the Elite x3 Windows 10 smartphone this year, providing even more choices for consumers in the mobile sector. The device provided a bridge for Windows users who could now leverage familiar applications on a robust mobile device.
    “HP has leapfrogged everyone in the mobile market by giving you the ability to have anything and everything you need when you are away from your office,” said Joe Hemani, founder of Elite x3 distributor Westcoast. “You longer need to tap into your legacy systems with another device like a laptop or desktop.”
  • Comparing with the competition: HP Inc. also made the bold move this year of bringing its newly designed laptops to Apple, showcasing and comparing their capabilities to that offered by Apple.
HP Inc. entered the 3-D printing market in 2016. HP Inc. entered the 3-D printing market in 2016.

These strategies have helped create a robust organization in HP Inc., and investors have taken notice. HP Inc. stock has seen a more than 30 percent increase year to date. What’s more, even more growth is expected for the company in the coming months as the Samsung acquisition is finalized and the 3-D printing space matures.

Hewlett Packard Enterprise: Competing with flash storage

Following the separation, one of the biggest obstacles Hewlett Packard Enterprise has had to deal with is the cloud. As a provider of traditional enterprise hardware to support on-premise data centers, the growing cloud market posed a specific threat to the business, but Hewlett Packard Enterprise wasn’t taking that challenge lying down.

Instead, the organization “responded directly to the public cloud competitive threat,” according to Forbes contributor Gina Longoria, with a new flash storage consumption approach aimed at addressing on-premise enterprise IT needs. The solution was introduced at the HPE Discover event in early December, and enables the company to better compete in the enterprise storage environment.

“As the cost of flash media declines and the capacity of flash increases, all-flash storage arrays are quickly gaining traction with mainstream enterprise IT,” Longoria wrote. “While it is difficult to make a direct comparison to Amazon’s flash storage pricing model, it is likely that HPE’s pricing scheme could result in significantly lower costs when compared to the public cloud.”

This, in conjunction with several other smart moves on the part of HPE executives, helped HPE stock soar in 2016 to the tune of 56 percent. While some analysts question whether¬†selling is the best option, The Motley Fool contributor Tim Brugger noted that this might be a hasty move considering HPE’s bright future.

“[C]onsidering HP Enterprise stock will soon include ownership in three tech leaders, rock-solid fundamentals, and the fact it’s a screaming value relative to its peers, existing owners should maintain their positions, if not add to them,” Brugger wrote.

iT1 Source: Providing the best of both worlds

It appears that 2017 has only growth and success in store for both HP Inc. and Hewlett Packard Enterprise, particularly as both firms boost investments in new markets and gain an increased customer following. With the ability to provide for both enterprise IT, mobility and consumer-level needs, HP Inc. and HPE are on track to continue conquering the technology industry.

Whether your organization is seeking enterprise storage or mobile device solutions, iT1 Source is an ideal service partner. We have robust partnerships with both HP Inc. and HPE, putting us in a unique position to create a holistic solution set for your business. To find out more, contact our expert consultants today.

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