For HP, splitting up maybe isn’t so bad for its cloud

Grazed from NetworkWorld. Author: Brandon Butler.

HP’s earnings came out this week, and while it was a mixed bag of good news and bad news revenue-wise, at least one analyst is optimistic that the split of the company in two will help the newly-formed HP Enterprise focus on what could be an important area of growth for the company: cloud computing.

New Hampshire-based Technology Business Review Inc. reports that HP’s $7.6 billion in Services revenue in 3Q14 was down 5.9% from the year-ago quarter and 0.8% sequentially. Enterprise Services declined 6% year over year. One area of growth was the company’s Strategic Enterprise Services segment which includes cloud, security, mobility and analytics, and reportedly grew by double-digits from the year-ago quarter, TBR said…

While splitting the company up into two acknowledges past failures, TBR Inc. analyst Cassandra Mooshian believes having a business-focused company in HP Enterprise (HPE) along with a consumer one named HP Inc. will remove the awkward structure of united company where various business units were essentially competing with one another…

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