HPE is like Cisco for the entire enterprise data center, also providing servers and storage infrastructure.

HPE is like a modern IBM, specializing in hybrid cloud and edge computing infrastructure and services for businesses.

• Servers: Physical computing hardware designed for data centers and enterprise workloads.
• Storage Solutions: Hardware and software systems for managing, storing, and protecting digital data.
• Networking Solutions (Aruba): Enterprise-grade wireless, switching, and security products for connecting devices and users.
• HPE GreenLake: (Cloud/IT as-a-Service Platform) An edge-to-cloud platform that delivers IT infrastructure and services as a flexible, pay-per-use model.
• Converged and Hyperconverged Infrastructure: Integrated systems that combine compute, storage, and networking into a single, software-defined platform.
• IT Consulting and Support Services: Professional services including consulting, implementation, and ongoing support for enterprise IT environments.
• IT Financing and Asset Management Services: Financial services providing leasing, financing, and lifecycle management for IT equipment.

Hewlett Packard Enterprise (symbol: HPE) primarily sells its products and services to other companies, making it a Business-to-Business (B2B) enterprise.

HPE's major customers are generally not disclosed by specific company name due to confidentiality agreements and the diverse nature of its customer base. HPE's revenue typically comes from a broad range of enterprise clients rather than a few dominant major customers. Therefore, it is not possible to list specific names of customer companies with their symbols.

However, we can identify the primary *categories* of companies that constitute HPE's major customer base:

1. Large Enterprises: These include global corporations across various industries such as financial services, manufacturing, retail, healthcare, energy, and telecommunications. These companies rely on HPE for critical IT infrastructure, including servers, storage, networking, hybrid cloud solutions, and advisory services to manage their complex operations and digital transformation initiatives.
2. Public Sector and Government Agencies: HPE serves federal, state, and local government entities, as well as educational institutions worldwide. These customers require secure, scalable, and reliable IT solutions for their administrative, operational, and research needs, often adhering to stringent regulatory and compliance standards.
3. Cloud Service Providers & Telecommunications Companies: Companies that build and operate large-scale data centers, provide cloud computing services, or offer telecommunications infrastructure are significant customers. They leverage HPE's hardware and software to power their own offerings, build out their network infrastructure, and deliver services to their end-users or businesses.

• Intel Corporation (INTC)
• Advanced Micro Devices (AMD)
• NVIDIA Corporation (NVDA)
• Micron Technology, Inc. (MU)
• Broadcom Inc. (AVGO)

Antonio Neri, President & Chief Executive Officer

Antonio Neri is the President and Chief Executive Officer of Hewlett Packard Enterprise. He joined Hewlett-Packard (HP) in 1995 in the customer service department in Amsterdam and has held numerous leadership positions within HP and HPE over his more than 25-year career. Prior to the 2015 split of HP, he served as senior vice president and general manager for HP's server and networking units. In 2015, Neri became executive vice president and general manager of HPE's Enterprise Group. He was promoted to President of HPE in June 2017 and subsequently became CEO in February 2018, succeeding Meg Whitman. Neri is credited with leading the development and introduction of key HPE technologies such as HPE Apollo, Superdome X, and Synergy. He was also responsible for HPE's acquisitions and integrations of companies including Aruba Networks, Nimble Storage, Silicon Graphics International (SGI), and SimpliVity.

Marie Myers, Executive Vice President & Chief Financial Officer

Marie Myers serves as the Executive Vice President and Chief Financial Officer of Hewlett Packard Enterprise, where she is responsible for the company's financial strategy and operations. Her career includes various roles at HP, UiPath, and Compaq. Before rejoining HPE as CFO in 2021, she served as the Chief Financial Officer at UiPath, a robotic process automation company. She previously held positions as global controller for HP's Personal Systems Group and as Vice President of Finance for the Enterprise Business.

Fidelma Russo, Executive Vice President & General Manager, Hybrid Cloud & Chief Technology Officer

Fidelma Russo is the Executive Vice President and General Manager of Hybrid Cloud and Chief Technology Officer at Hewlett Packard Enterprise. In this role, she is responsible for guiding HPE's technology strategy and overseeing the development of innovative hybrid cloud solutions. Her leadership has been instrumental in advancing HPE's position in the tech industry. Before joining HPE, Russo held positions as CTO and Executive Vice President of Global Technology & Operations at Iron Mountain, and as Senior Vice President and General Manager of the enterprise storage business at Dell Technologies.

Neil MacDonald, Executive Vice President & General Manager, Compute, HPC & AI

Neil MacDonald serves as the Executive Vice President and General Manager for HPE's Compute, High-Performance Computing (HPC), and Artificial Intelligence (AI) businesses. He is responsible for leading these key technology areas within the company.

Mark Bakker, Executive Vice President & General Manager, HPE Operations

Mark Bakker is the Executive Vice President and General Manager of HPE Operations, where he oversees the delivery of products and services across all HPE brands, including the global supply chain. He is responsible for driving the strategic direction and execution of HPE's end-to-end customer and partner experience. Before joining Hewlett Packard Enterprise in 2020, Bakker spent more than 25 years with HP, with his most recent role being the Head of America's Supply Chain Operations.

The key risks to Hewlett Packard Enterprise's (HPE) business include the significant execution risks associated with its strategic transformation and recent acquisitions, intense market competition, and ongoing financial and operational headwinds.

1. Execution Risk of Strategic Transformation and Acquisitions: HPE is undergoing a strategic transformation to become a high-margin, AI-driven infrastructure leader, which involves managing its legacy businesses and significant margin pressure and execution risk. A primary example is the $14 billion acquisition of Juniper Networks, central to HPE's strategy to enhance its networking business and shift its revenue mix towards higher-margin offerings. This acquisition has faced legal and regulatory scrutiny, introducing uncertainty, and any delays or failure to achieve planned synergies could directly impact profitability. Regulatory concessions, such as divesting the Aruba Instant On WLAN business and licensing Juniper's AI Ops for Mist source code, also raise concerns about long-term profitability in specific market segments. Insider selling following the Juniper acquisition has also been noted, potentially signaling caution regarding the strategic direction.
2. Intense Market Competition and Rapid Technological Changes: The enterprise IT market in which HPE operates is highly competitive, with numerous formidable players vying for market share. Key competitors include established giants like IBM, Dell Technologies, and Cisco Systems, as well as cloud service providers such as Amazon Web Services (AWS) and Microsoft Azure. This intense competition, particularly in price-sensitive segments, necessitates continuous innovation and strategic positioning for HPE to maintain and grow its market share. The rapid pace of technological change further intensifies competitive pressures within the hardware industry.
3. Financial and Operational Headwinds / Profitability Pressures: HPE faces profitability pressures, partly due to the high costs associated with AI components, even though some core business segments exhibit healthier margins than the consolidated figures. The company reported a GAAP diluted net loss per share in Q2 fiscal year 2025, significantly impacted by one-time acquisition and restructuring charges, as well as the high cost of new AI server components. Furthermore, HPE has experienced a negative working capital position, indicating less financial buffer, and an increased reliance on debt in 2025 to fund strategic acquisitions, which heightens financial risk. Recent financial results have shown a revenue shortfall and cautious guidance, primarily attributed to slowing enterprise spending, especially concerning AI infrastructure, and delays in AI server shipments that have impacted revenue recognition.

The proliferation and increasing sophistication of proprietary, custom-designed AI hardware (e.g., Google TPUs, AWS Trainium/Inferentia, Microsoft Maia 100) developed by hyperscale cloud providers presents a clear emerging threat to Hewlett Packard Enterprise.

As AI becomes a critical workload for enterprises, these highly optimized and often proprietary hardware solutions, offered primarily as-a-service from public clouds, could significantly diminish the demand for HPE's on-premises or GreenLake-based AI infrastructure solutions that typically rely on third-party GPUs. This threat is emerging because the full scale and impact of these custom AI accelerators, and their deep integration into hyperscaler ecosystems, are only now beginning to materialize and could lead to significant shifts in enterprise IT spending towards cloud-native, specialized AI infrastructure, bypassing traditional hardware providers like HPE for this crucial growth segment.

Hewlett Packard Enterprise (HPE) participates in several significant addressable markets globally:

• Total Addressable Market (TAM): HPE projects its total addressable market to expand by nearly $100 billion over a four-year period, surpassing $340 billion, primarily driven by growth in Artificial Intelligence (AI).
• Servers: The global server market reached an annual revenue of $235.7 billion by 2024 and is expected to grow to $252 billion in 2025, with a substantial portion fueled by AI servers. HPE is recognized as a top-five global server provider. North America leads global server consumption, Europe accounts for approximately 22% of the server market, and Asia-Pacific is the fastest-growing region, representing 28% of global server consumption.
• Storage: HPE holds approximately 10% of the global storage market. As of March 2025, IDC ranked HPE third among enterprise storage system suppliers with an 8.3% market share and revenues of $2.613 billion.
• Networking: The global networking market is valued at $60 billion. Following the acquisition of Juniper Networks, HPE's combined networking business is positioned to significantly increase its market share.
• HPE GreenLake (as-a-Service/Hybrid Cloud/IaaS): HPE GreenLake, an edge-to-cloud platform, has a total contract value exceeding $15 billion and an annualized revenue run rate (ARR) of over $1.5 billion as of Q2 fiscal year 2024. Globally, HPE GreenLake holds a 0.52% market share in the Infrastructure-as-a-Service (IaaS) market.

Hewlett Packard Enterprise (HPE) is expected to drive future revenue growth over the next 2-3 years through several key areas:

1. Artificial Intelligence (AI) Infrastructure: HPE is focused on capturing profitable growth in the explosive AI infrastructure market, particularly with enterprise and sovereign customers. The company reported significant growth in AI systems revenue in Q4 2024, with a 16% sequential increase to $1.5 billion, and exited fiscal year 2024 with $6.7 billion in cumulative orders since Q1 of fiscal year 2023. Strong demand for AI systems is expected to continue.
2. HPE GreenLake and as-a-Service Offerings: The continued adoption of HPE GreenLake is a significant driver of revenue. HPE GreenLake saw a 48% year-over-year increase in annual recurring revenue (ARR) to $1.9 billion in fiscal year 2024. The company is strategically shifting its portfolio towards higher-growth, higher-margin businesses, including recurring revenue streams through offerings like software-defined storage, which is expected to drive long-term growth.
3. Networking Expansion, including Juniper Networks Acquisition: The pending acquisition of Juniper Networks is a crucial strategic move to strengthen HPE's networking capabilities. This acquisition is expected to accelerate AI-driven innovation and significantly contribute to HPE's financial performance and strategic growth. HPE projects networking revenue to increase annually between fiscal years 2025 and 2028.
4. Hybrid Cloud Solutions: The Hybrid Cloud segment demonstrated strong performance, with revenue growing 18% year-over-year and 21% quarter-over-quarter to $1.6 billion in Q4 2024. HPE anticipates expanding its leadership in the hybrid cloud market, further contributing to revenue growth.
5. Growth in Server Business: Beyond AI systems, the overall server business remains a key revenue driver. HPE's server business achieved a record revenue of $4.7 billion in Q4 2024, up 31% year-over-year, marking a third consecutive quarter of double-digit growth, indicating continued robust demand for both AI and traditional servers.

Share Repurchases

• Hewlett Packard Enterprise (HPE) repurchased $150 million in shares in fiscal year 2024, $421 million in 2023, and $512 million in 2022.
• As of October 31, 2024, HPE had a remaining authorization of approximately $0.8 billion for future share repurchases.
• HPE's Board of Directors authorized an additional $3 billion for share repurchases, bringing the total repurchase authorization to approximately $3.7 billion, with plans for significant free cash flow return to shareholders via dividends and buybacks.

Share Issuance

• HPE did not issue stock options in fiscal years 2022, 2023, and 2024.
• Stock-based compensation expense was approximately $430 million in fiscal year 2024, $428 million in 2023, and $391 million in 2022.
• As of October 31, 2023, there were 35,911,747 shares available for future issuance under the HPE 2021 Stock Incentive Plan and 55,749,806 shares available under the Employee Stock Purchase Plan (ESPP).

Inbound Investments

• In the third quarter of fiscal 2025, Hewlett Packard Enterprise received $52 million from a settlement.

Outbound Investments

• On September 4, 2024, HPE divested 30% of the total issued share capital of H3C, retaining an option to sell the remaining 19%.
• In May 2024, HCLTech acquired select assets of Communications Technology Group, a business division of Hewlett Packard Enterprise, for $225 million.
• HPE made several acquisitions, including a pioneer in software for hybrid cloud management (Q4 FY24), a global leader in AI networking (Q1 FY24), and OpsRamp IT Operations Management Software (Q2 FY23).

Capital Expenditures

• HPE's capital expenditures were $2.367 billion in 2024, $2.828 billion in 2023, and $3.122 billion in 2022.
• Capital expenditures are estimated to be $2.120 billion for fiscal year 2025 and $2.469 billion for fiscal year 2026.
• While specific focus areas for capital expenditures are not detailed, HPE's strategic priorities include building a new networking industry leader, capturing profitable growth in the AI infrastructure market, and accelerating high-margin software and services growth through GreenLake.