HPE NZ sees huge admin savings within 65% profit drop
HPE NZ’s annual financial results have been filed showing a 65% drop in profit since the spin-off of HPE Enterprise Services.
While their 2016 numbers showed a profit of $10 million, 2017 saw just $3.5 million, a drop which is greater than the one seen in total revenue.
In 2016 HPE NZ saw $245 million passes through their coffers, while in 2017 it was $130 million - a drop of 47%.
However, this needs to be compared with the reduction in operating costs that the company saw due to the restructuring.
Administrative expenses totalled $113 million in 2016, while in 2017 that number dropped down to just $32 million - a not insignificant reduction of 72%.
Depreciation of property, plant and equipment plunged by 91% from $6 million to just $500k.
Overall, the results reveal a more streamlined and less burdened organisation moving into 2018.
These results come amongst interesting times for HPE both locally and globally.
IDC named Aruba-HPE as a ‘Leader’ among WLAN vendors in their MarketScape analysis, alongside Cisco.
Other vendors profiled in this IDC MarketScape analysis and ranked as either ‘Major Players’ or ‘Contenders’ in the market include (in alphabetical order): ADTRAN, Aerohive, Extreme, Fortinet, Huawei, Mojo, Riverbed/Xirrus, Ruckus/ARRIS, and Ubiquiti.
HPE is also working to expand their portfolio to meet modern expectations, recently releasing a range of offerings designed to help introduce and accelerate organisations AI offerings.
HPE says their new offerings can enable customers to explore, evolve and expand AI applications aligned to their business and industry needs, accelerating time to value.
The company has taken the second spot as the vendor of cloud IT infrastructure, just behind Dell and ahead of Cisco.
It even sent two water-cooled servers directly from the factory to the space station as part of an effort to test the viability of keeping data centers off-planet.