Business Strategy and Outlook| William Kerwin |
Hewlett Packard Enterprise, or HPE, is a comprehensive IT hardware provider to large enterprises, supplying compute servers, storage arrays, and networking equipment. We don’t view HPE as a technology leader, nor do we see it as holding competitive advantages compared with peers. Nonetheless, HPE is a top-5 player across its core markets, and we expect it to maintain demand as data centers utilize hyperconverged infrastructure and enterprises opt for hybrid cloud approaches. We also believe investors may find its cash generation and subsequent returns to shareholders attractive.