Hewlett Packard Enterprise Co. (HPE) announced fiscal full-year 2016 and fourth-quarter earnings on Nov. 21. The Palo Alto, Calif.-based tech giant reported mixed earnings, with top line numbers missing analysts’ forecasts and earnings meeting the consensus. (See also: HPE Reports Mixed Fiscal Q4 Earnings.)

Optimism Regarding Growth Prospects

CEO Meg Whitman has spearheaded a massive core business trim down over the past year, since HPE  split from PC and printing company HP Inc. (HPQ). Investors are now analyzing what remains of HP Enterprise after two massive spinoffs. First, HPE announced a spinoff of its enterprise IT services business in a merger deal with Computer Sciences Corp. (CSC). In September, the firm’s software business was sold to Micro Focus for $8.8 billion.

Initially after the firm’s recent fiscal Q4 report, investors showed disappointment in part due to lower than expected guidance from HPE, while analysts weigh in on the direction of Whitman’s restructuring plans.

Aiming to Facilitate Movement to the Hybrid Cloud

In the firm’s most recent earnings call, Whitman stated, “We’re focused on winning in key growth areas in the traditional data center like big data analytics, high performance compute, all-flash storage and networking.” (See also: HPE Sees Growth in HPC Market.)

HPE plans to leverage the growing hybrid cloud space, as traditional enterprises move from on-premise data centers to the cloud. The tech firm has offered a variety of tech products to simplify this transition, from data centers, software-defined infrastructure and private cloud technology. Recently, HPE came out with an all-flash data center to serve as an alternative to rapid cloud transformation.

In efforts to strengthen its presence in computing and data analytics, HPE bought high-performance computing company SGI in a deal worth $275 million. In June, HPE and GE Digital announced a partnership in which HPE will serve as the primary storage and infrastructure provider for GE’s Predix Cloud technologies. HPE’s other big tech alliance is Microsoft Corp. (MSFT), in which the company signed a deal agreeing to sell Microsoft Azure as its preferred cloud solution.

HPE’s closing price of $23.74 per share represents an approximate 2.7% increase since the firm’s pre- fiscal fourth-quarter earnings report and a 52% surge year over year

 

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