Dell, EMC, Dell Technologies, Cisco,

Sunday, March 5, 2017

Hewlett Packard Enterprise core server and storage challenges attributed in part to loss of business from Microsoft

#HewlettPackardEnterprise (NYSE: #HPE ) noted last week during its Q1 2017 earnings call that its revenues had been impacted (-10.4% Y/Y $670M below consensus estimates) by "significantly lower demand" from a principal tier-1 service provider. Bloomberg reports the provider as #Microsoft, noting that company's efforts to demand lower prices of hardware providers as competition for expansion of public cloud services continues to rise across a space also comprising major participation by #Amazon and #Alphabet. Given Microsoft's recently-unveiled internal cloud server designs and the mandate for adherence among hardware providers, Hewlett Packard Enterprise and its direct competitors, notably #DellTechnologies, are realizing increasing pressure from lesser-cost manufacturers as cloud adoption accelerates. Last week (February 23, 2017): Hewlett Packard Enterprise -6.5%; Q1 2017 revenue, outlook off

http://seekingalpha.com/news/3248124-hewlett-packard-enterprise-core-server-storage-challenges-attributed-part-loss-business

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