Hewlett-Packard continues to invest in Big Data and cloud computing, but sales apparently haven't grown fast enough to offset weaknesses across HP's services, printing and enterprise businesses. HP CEO Meg Whitman and several other executive team members described the state of HP during the company's Q4 earnings call earlier this week.
During the call, Whitman and the team mentioned cloud computing seven times -- but the executives didn't dive into specific dollars and cents generated from the cloud.
Whitman said fiscal year 2014 R&D rose 10 percent from 2013, as the company "increased investment in every segment," including cloud, infrastructure, 3D Printing, and more.
Then, she pointed to multiple cloud product launches, including the HP Helion platform to build, manage and consume hybrid clouds; the Eucalyptus cloud acquisition; and HP ProLiant Gen9 Servers optimized for the cloud. But she didn't says how much recurring cloud revenue HP now generates.
Big Data Update
Whitman and the executive team also mentioned ongoing Big Data efforts, including the HP Vertica Big Data Analytics platform, as well as new "big data converged solutions that are already generating revenue."
But here again, Whitman didn't discuss any dollars and cents from the Big Data effort. And Autonomy -- the Big Data acquisition that eventually triggered an $8.8 billion write down in 2012 -- was never mentioned on the call, according to a transcript from SeekingAlpha.com.
Overall, HP's Q4 revenues fell 2 percent to $28.4 billion, and net income fell 4 percent. The biggest trouble spots involved HP Enterprise Services (down 7 percent), printing (down 5 percent) and enterprise sales (down 4 percent, including a big 8 percent drop in the storage business).
Ironically, HP's PC business -- once considered the weak link in the company -- grew revenues 4 percent as businesses increased their PC spending with HP by 7 percent (consumer-related PC revenues dropped, however).
Breakup Is A "Separation Event
During the call, HP also re-confirmed plans to split the company into two businesses. But don't call it a breakup. HP instead labels it a "separation."
"It's still early in the process but we have a comprehensive plan to ensure that we execute a successful separation with minimal disruption to the business," Whitman told financial analysts during the call. "We have already established a separation management office, task with driving the separation process, while allowing the company to continue to execute our FY 15 programs."
In some ways, HP's challenges resemble those of IBM -- which was late to the cloud computing and next-generation mobile market, and relied far too heavily on traditional hardware, software and services revenues. Both companies are now working overtime to accelerate their respective cloud and mobile efforts.
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access