New GreenLake as-a-service business unit a key part of reorganization
Hewlett Packard Enterprise CEO Antonio Neri is taking another significant step in the massive tech vendor’s transformation into more of a service-focused company with a restructuring that includes a new cloud service unit based on its GreenLake offering.
The Lowdown: The company has seemingly been on a transformative journey since venerable Hewlett-Packard split in two in 2015, creating HP Enterprise and HP Inc. The CEO sees the latest moves creating a more agile company for a post-COVID-19 world.
The Details: In a blog post this week, Neri, who became CEO in 2017, wrote that he had evaluated the company’s organizational structure over the past several weeks and that the “time is right for an organization where each one of our business groups, aligned to market trends and our own financial segmentation, directly reports to me.”
That included creating the GreenLake Cloud Services business group. GreenLake was launched in 2018 as HPE’s IT-as-a-Service platform and is the foundation of the vendor’s initiative to offer its entire portfolio as a service by 2022. The new business unit will be headed by Keith White, a one-time Microsoft cloud executive who came to HPE in December, and will be tasked with giving customers a “consistent cloud experience for all of their applications and data wherever they live: at the edge, across public and private clouds, in co-locations, or in the data center consumed through a flexible, pay-as-you-go model,” Neri wrote.
Other business units include Storage, Compute, PointNext Technology Services, and HPE Financial Services. There also is the High Performance Computing (HPC) and Mission Critical Solutions unit, led by Peter Ungaro, former CEO of supercomputer maker Cray, which HPE bought for $1.3 billion last year, and Intelligent Edge unit, led by Keerti Melkote, former CEO of Aruba, which HPE bought for $3 billion in 2015.
Neri also appointed Kumar Sreekanti CTO and head of the Software unit and announced that Mark Potter, who had been CTO and head of HP Labs, was retiring. Ungaro will now run HP Labs. In addition, the CEO created an executive committee to help plot out the road map for HPE going forward.
The Impact: HPE for a couple of years has been on the path toward becoming a company focused on delivering IT as a service in a cloud-to-edge world, but officials have said noted that the coronavirus pandemic is highlighting the need for enterprises to embrace agile and resilient IT environments that support remote workforces and ensure business continuity.
The company last week released its GreenLake Central software platform that includes an online operations console for enabling companies to manage applications and data throughout their cloud operations and out to the edge.
The Buzz: “In the new world that is emerging, business continuity will depend on technology that advances IT resiliency, empowers remote workforces, and creates new experiences,” Neri wrote. “Through the power of technology, we can reinvigorate customer engagement and help organizations re-imagine their business models. HPE has a very important role to play in all of this, and it’s critical that we accelerate our pivot to becoming the edge-to-cloud platform-as-a-service company.”