Hewlett Packard Enterprise (HPE) reported that its second quarter revenue rose 10 percent (6 percent when adjusted for currency) to $7.5 billion.
HPE revenue dropped significantly in the Asia Pacific region during its fiscal second quarter, ended April 30, 2018.
HPE does not reveal its specific revenue in India, China and Japan, three major countries in the Asia Pacific region.
HPE generated revenue of $6 billion (+7 percent) in Hybrid IT business with 10.3 percent operating margin.
Within Hybrid IT business, compute revenue was up 6 percent, Storage revenue was up 24 percent, DC Networking revenue was up 2 percent, and Pointnext revenue was up 1 percent.
HPE generated revenue of $710 million (+17 percent) from Intelligent Edge or HPE Aruba with 6.5 percent operating margin.
Within Intelligent Edge, HPE Aruba Product revenue was up 18 percent and HPE Aruba Services revenue was up 10 percent.
HPE generated revenue of $916 million (+5 percent) from Financial Services with operating margin of 7.9 percent.
HPE growth strategy
HPE Next, which is aiming to cut down cost and improve revenue, followed a new initiative to re-architect HPE focussing on simplification, execution and innovation.
HPE is simplifying its operating model. It’s streamlining its offerings and business processes and modernizing IT systems to improve the execution. As a result, HPE has delivered an operating margin of 8.6 percent in Q2.
“We’re shifting our investments in innovation towards high-growth and higher-margin opportunities,” HPE CEO Antonio Neri said.
HPE acquisitions for innovations
HPE acquired Cape Networks bringing autonomous infrastructure enabled by artificial intelligence (AI).
Cape Networks expands Aruba AI powered networking capabilities with a sensor-based network assurance solution that improves network performance, reduces disruptions and significantly simplifies IT management for HPE customers.
HPE also announced the acquisition of Plexxi. Plexxi provides innovative software-defined networking technology that will be integrate into both SimpliVity, hyper-converged offering, and Synergy, composable infrastructure offering.
Plexxi will enable HPE customers to manage their data more quickly and effectively and also significantly reduce Capex and Opex by up to 50 percent in some cases.
HPE’s Nimble acquisition assisted the company to grow storage revenue by 24 percent year-over-year. HPE said All-flash continue to perform well growing 20 percent year-over-year, as the market continues to transition and HPE benefits from its strong position with both 3PAR and Nimble.
HPE also acquired RedPixie, a UK-based cloud consulting company with Microsoft Azure expertise, which complements CTPs AWS relationship.