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Hewlett Packard Enterprise, Microsoft Extend Partnership


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As per a Wall Street Journal report, Hewlett Packard Enterprise Company (HPE - Snapshot Report) is likely to boost its collaboration with Microsoft Corporation (MSFT - Analyst Report) at Microsoft Ignite in Atlanta related to the latter’s hybrid platform, Azure.

Strategic Move                          

Earlier, Hewlett Packard Enterprise had tried its hand at gaining market traction in the public cloud space. However, given the fierce competition in the sector, the company opted to be a reseller of Microsoft Azure as part of a new partnership deal.

The company intends to utilize the hybrid cloud to run its cloud capabilities. It will now be able to shift some of its off-premise jobs to the cloud.

We note that with CEO Meg Whitman at the helm, Hewlett Packard Enterprise continues to evolve as a more efficient business focused on emerging sectors such as cloud computing, Internet of Things (IoT), data storage, networking and software-defined services.

Notably, the company shut down its public cloud offering HP Helion in Oct 2015 due to stiff competition. However, with Microsoft’s Azure by its side, the company seems to have regained confidence to make its presence felt in the cloud.

In its third quarter fiscal 2016 results, the company posted earnings of 49 cents per share and reported revenues to the tune of $12.2 billion.


Traditionally, public clouds are known to provide cost reductions as on-premises setups are not required. On the other hand, a private cloud or a hybrid cloud provides both security and computing performance to users. Hence, the hybrid cloud is an attractive option for traditional enterprise customers who want to make the switch to the cloud. 

Our Take

Apart from HPE, Dell Technologies Inc. and Adobe Systems Incorporated (ADBE - Analyst Report) are also looking forward to collaborate with Microsoft on the hybrid cloud.

We note that, of late, many companies are choosing Microsoft’s Azure over Amazon’s AWS cloud service, which bodes well for Microsoft in the long run.

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