back to article Free of software boat anchor and chain around its neck, HPE sees profits inch upward

HPE is showing signs that its turnaround is picking up, as the enterprise IT giant raised its revenues – and on Tuesday talked up a future without its software business. For the three months to July 31, HPE's third quarter of the 2017 fiscal year is as follows: Revenues of $8.2bn were up 3 per cent from Q3 2016. This was …

  1. Anonymous Coward
    Anonymous Coward

    Failed the IQ test

    Running a successful software business is a supreme test of practical intelligence. The potential added value of software is immense - after all, hardware does literally nothing but run software, so without software it is nothing but a bunch of rather large doorstops and boat anchors.

    So the question whether a given corporation can make money out of selling the useful part of computers is a bit pointed. Obviously, HP cannot. It is in good company, however; only a tiny fraction of those who set out to sell software succeed in the long run (i.e. over 8-10 years).

    1. Roland6 Silver badge

      Re: Failed the IQ test

      Agreed, however, this comment gives a hint at the problem:

      "The now spun-off Software group reported $718m in revenue, down three per cent year-over-year. HPE notes that without Software, the corp as a whole would have grown revenues by six per cent instead of the three per cent it reported."

      Obviously, it is more important to have a large percentage growth in revenues to shout about - don't worry about the actual numbers, or actually comparing like-with-like just look at the headline percentage revenue growth...

  2. Alistair
    Windows

    @Roland6

    This is the disease called wallstreet. mUst haVe constant increase in relative percentage of profits.

    If you look closely, revenues *can* go down -- so long as you declare a growth in profitability.

  3. Clairon

    After Q3 Results, big re-org coming

    Just after the Q3 Reports, HPE President Neri announced internally a new org, with a new CSO. The 2 SVP in charge of US & EMEA (Andy Isherwood, ex-UK MD who started more than 30 yr ago as "young graduate"), will pursue other opportunities outside HPE.

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