Cloud underperforms in gloomy HP results

Grazed from CloudPro. Author: Jane MaCallion.

HP CEO Meg Whitman claims cloud, big data and application modernisation are central to the firm’s turnaround strategy, despite its third quarter results suggesting its cloud business is underperforming. In a call with analysts, transcribed by Seeking Alpha, Whitman stepped back from earlier statements that the company could return to revenue growth in 2014 following the disclosure of its Q3 results.

The company’s software division was one of the few that demonstrated year-on-year revenue growth, and Whitman said she was “especially pleased with the continued performance in [HP’s] strategic areas of cloud, security and big data”…

“Going forward we are focused on strengthening our go to market capabilities dedicated to strategic enterprise service solutions in areas like cloud, big data and apps modernisation and new account wins,” she added. However, revenue generated from HP’s Software-as-a-Service (SaaS) operations fell short of expectations, despite being 4 per cent higher than last year…

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