Hewlett Packard Securities Analyst Meeting 2015€¦ · Based on reported HP segment revenue and...

Hewlett Packard Securities Analyst Meeting 2015

1

#hpesam2015

Enterprise Group Antonio Neri Executive Vice President and General Manager

Executive summary

The Enterprise Group is delivering strong revenue growth and stable margins

Our experience and knowledge are perfectly timed with customers’ journey

Our innovation is accelerating resulting in market share gains

Technology Services is our crown jewel and generates highly resilient cash flow

IT infrastructure matters more than ever and spending is increasing

Enterprise Group performance is strong and getting stronger

OPERATING MARGIN 1 (ROLLING 4 QUARTERS)

REVENUE GROWTH 1

Growing revenue

Maintaining operating margin

2% -1%

1%

-4%

3% 5%

9%

1% -2% 2%

-4%

0% -1%

2%

Q114 Q214 Q314 Q414 Q115 Q215 Q315

15% 15% 14% 14% 15% 15% 14%

Q114 Q214 Q314 Q414 Q115 Q215 Q315

Reduced costs

COST SAVINGS $M

-$620

-$220

-$350

Supply Chain (Gross)

TS Cost Optimization

Discounting (net)

1. Based on reported HP segment revenue and operating margin 2. Adjusted to eliminate the effects of currency

VS 2013 EXIT

Constant currency 2

As reported

Customers’ feedback

“Of all the vendors I’ve encountered, HP's service is the best. We are willing to buy HP's top-level services.” IT manager, semiconductor company

“Automating our IT maintenance is the top priority for this year. HP brings more confidence to us. “ CIO, stock exchange

“With HP's service support, our business has become more agile and adapt to market changes faster. A true partnership.” CIO, shipping company

Delivering industry leading Customer Satisfaction

Nov-

11

Dec-

11

Jan-

12

Feb-

12

Mar

-12

Apr-

12

May

-12

Jun-

12

Jul-1

2

Aug-

12

Sep-

12

Oct-

12

Nov-

12

Dec-

12

Jan-

13

Feb-

13

Mar

-13

Apr-

13

May

-13

Jun-

13

Jul-1

3

Aug-

13

Sep-

13

Oct-

13

Nov-

13

Dec-

13

Jan-

14

Feb-

14

Mar

-14

Apr-

14

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-

14

Nov-

14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-

15

May

-15

Jun-

15

Customer Satisfaction

Customer Dissatisfaction

CSAT DSAT

This Magic Quadrant graphic was published by Gartner Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from HP. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Servers Disk Arrays Wired/Wireless Networks Integrated Systems

Our innovation fuels industry leadership



Servers




Disk Arrays





Wired/Wireless Networks




Integrated Systems

Accelerating innovation to deliver business outcomes

SDN App Store Accelerating SDN App Ecosystem

StoreVirtual VSA StoreOnce Backup VSA Easy shared storage for ProLiant Virtualization

SDN Controller Software-defined networking

HP OneView Infrastructure management platform

Technology Consulting for SDI Workshop, Roadmap, Architecture, Design, Implementation

CloudSystem Industry-leading private cloud

HP Helion Hybrid cloud

HP Helion Network World’s largest open cloud network

HP Virtual Cloud Networking SDN for the Cloud

HP Helion OpenStack & NFV Carrier grade Open source cloud platform; And a new NFV solution for CSPs

HP Helion Dev Platform Open source PaaS

iLO Redfish RESTful APIs

HP Cloudline 7100/7300 Open Infrastructure for Cloud services

SDI Accelerator Solutions Easily pilot software-defined infrastructure

HP Altoline Open networking Infrastructure

VCN

HP Moonshot Mobile, Media and Big Data Workloads

HP ProLiant Gen 9 Advancing HP Compute for Enterprise / SMB

HP Apollo Redefine economics for complex data analytics insights

3PAR StoreServ All-Flash Affordable tier-1 flash for all applications

StoreVirtual Software-Defined Hyper-Converged HP Helion OpenStack

StoreOnce Data Protection 17x faster backup for 3PAR

MSA Simple storage for smaller sites

FlexFabric Switches Datacenter networking

Mobility-first networking Mobility infrastructure and software

Datacenter Care Better operate existing IT and evolve to Hybrid IT

Flexible Capacity Suite New infrastructure consumption model

Proactive Care Prevent issues and get the best experts

Datacenter Consulting Transform and modernize IT infrastructure and facilities

Trusted Transformation Trusted approach for customer journey

ConvergedSystem 700 On-demand Infrastructure IaaS, Mobility, and Mixed workloads

ConvergedSystem 300/500/900 SAP HANA / MSFT APS Scaling big data analytics and MSFT workloads

ConvergedSystem 200 Hyper-converged Scaling software-defined infrastructure

CS Reference Architectures Greater interoperability

HP Data Privacy Services Protect sensitive data across the entire IT lifecycle

HP Integrity Fault-Tolerant Performance and scalability

Haven Platform ecosystem

Business Transformation Workshops Helping customers with the first step of transformation

NFV Systems & Director 3.0 Accelerates Deployment of Network Functions Virtualization

Software-Defined

Converged Infrastructure

Cloud

















VCN


























Software-Defined


Cloud


















VCN

























Software-Defined


Cloud

65% industry gross margin

$19B market by 2018

Hewlett Packard Enterprise + Aruba Networks creates an industry leader in wireless mobility

• Enterprises are taking a wireless-first approach to connectivity

• They require integrated solutions to help them transition legacy systems to the wireless age

• Together, Hewlett Packard Enterprise + Aruba will deliver next-generation converged campus solutions

• Next-generation 802.11ac Wi-Fi standard is driving a network refresh of both wireless access points and campus switches

Enterprise Group: $227 billion in opportunity

Market size

$B, CY15

Growth CAGR %, '15 -'18

$55

2% 4%

$33 $32

2% 4%

$108 $227

3%

Servers Storage Networking Technology Services

Enterprise Group

Cloud Hardware

9% $77B market size


$21B market size

11%

Network Function Virtualization

$10B market size

122% Growth rate Growth rate Growth rate

CIOs must become value creators and bridge traditional and new

Contain costs Create outcomes

Provide hardened systems & networks

Manage & mitigate risk

Efficiently host workloads & services

Continuously create & deliver new services

Store & manage data

Software automates business systems

Software differentiates products & services

Provide real-time insight & understanding

Transform to a hybrid

infrastructure

Enable workplace

productivity

Protect your digital enterprise

Empower a data-driven organization

Delivering infrastructure that is the foundation for the new style of IT

Maximizing value from your

apps and data Enable workplace

productivity

Transform to a hybrid

infrastructure

Empower a data-driven organization

Protect your digital enterprise

HP’s strengths are well aligned with the journey to hybrid infrastructure

Deploy & Manage Private Cloud with traditional apps

Extend & Modernize with new cloud native applications

Bridge, Broker and Manage Multiple Clouds

Private Cloud

Managed Private Cloud

Private Cloud

Managed Private Cloud

Public Cloud

Managed Virtual Private

Cloud

Converged & Virtualize

Transform App & Service Delivery

Automate & Orchestrate

Accelerating IT & Operations Transform to Hybrid Infrastructure

Most of our customers are still at the beginning of their transformation to hybrid infrastructure

Datacenter Care & Flexible

Capacity

Technology Services is a crown jewel in EG’s portfolio

Support Personal, Proactive, Simplified

Consulting Advise, Transform, Integrate

Availability Evolution

Foundation Care

Proactive Care

Lifecycle Event

Services

Datacenter/ Cloud

Storage/ Big Data

Network/ Mobility

Education Services

Our customer rely on Technology Services to enable and support their IT journey


Capacity

Technology Services is a crown jewel in EG’s portfolio

Support Personal, Proactive, Simplified

Consulting Advise, Transform, Integrate

Proactive Care

Lifecycle Event

Services

Datacenter/ Cloud

Storage/ Big Data

Network/ Mobility

Education Services

Our customer rely on Technology Services to enable and support their IT journey


Capacity

Evolution Availability

Foundation Care

Technology Services DataCenter Care Services: More than 4000 customers and growing rapidly

HPE Flexible Capacity: Agility and confidence

“We gain the benefits of an agile service architecture while keeping control of our sensitive patient data.”

“We offer pay-as-you-go to our customers. They pay us for what they use and we pay HP for what we use…this enables us to manage financial risk.”

Pay only for what you use

Flexibility that scales when you need it

Enterprise-grade support, in your data center

New support solutions & profitable foundation care drive robust cash flow

New Support Solutions

Foundation Server/ Storage/ Networking

Foundation Legacy UNIX

Y/Y Order Growth (constant currency)1 -2% +3%

• New Support Solutions growth is more than offsetting the declining legacy support for the UNIX/EVA/XP markets

• Technology Services margins have remained stable through the mix transition and continue to generate highly resilient cash flow

Foundation Legacy XP/EVA

FY13 FY14 FY15E

33%

39%

9%

20%

38%

37%

7%

17%

43%

37%

6%

13%

1. Adjusted to eliminate the effects of currency, Y/Y as reported order growth in FY14 was -6% and FY15 is estimated to be -3%

The bottom line …

The Enterprise Group is delivering strong revenue growth and stable margins

Our experience and knowledge are perfectly timed with customers’ journey

Our innovation is accelerating resulting in market share gains

Technology Services is our crown jewel and generates highly resilient cash flow

IT infrastructure matters more than ever and spending is increasing

Hewlett Packard Securities Analyst Meeting 2015

2

#hpesam2015

Hewlett Packard Securities Analyst Meeting 2015€¦ · Based on reported HP segment revenue and...

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