HP Restructures Cloud Business Before November Split


Meg Whitman makes organisational changes to hybrid cloud game plan to “allow synergies to shine through”

HP is set to restructure its cloud business ahead of its November split, where the firm will separate into two companies.

An internal memo penned by CEO Meg Whitman, obtained by Re/code, says that HP’s cloud R&D division will move into its software business, led by Robert Youngjohns.

HP’s cloud product management group, bossed by Bill Hilf, will also be swept into the software division.

This, according to Whitman, will help HP’s hybrid cloud strategy a great deal.


“I believe organizationally pulling these teams closer together will help to speed our product and R&D efforts, allowing for the synergies to shine through,” she wrote in the memo.

“Just put our go-to-market down…there”

HP’s actual cloud product division will move into the Enterprise Group, the same group that flogs servers and networking equipment. Effectively, HP’s cloud go-to-market is moving to a division where there is already sales traction.

Whitman said that the shift will go into effect on November 1, the same day as the official split of HP into HP Inc and HP Enterprise.

The memo, titled ‘Organizational changes to support our hybrid infrastructure strategy’, was addressed to all Hewlett Packard Enterprise employees.

“As you know, we are moving quickly to reorient Hewlett Packard Enterprise to capitalize on four major market opportunities,” wrote Whitman.

“In order to achieve the cost, speed and agility that customers need, we must help them take an application-first view of their infrastructure. Since no two applications will have the same profiles and no two companies will have the same requirements, our customers each need unique hybrid infrastructure solutions that allow them to seamlessly manage thousands of applications across traditional IT and public, private and managed clouds.

Whitman said that there is a “natural alignment” between HP’s cloud and software products, hence the reorganisation.

“Cloud Go-To-Market (GTM) will move to the Enterprise Group (EG) where it will be combined at the regional level with the Converged Data Infrastructure (CDI) GTM,” continued Whitman.

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“Cloud is a central component to transform to a hybrid infrastructure and aligns squarely with the customer-focused, solutions-led selling commitment of Hewlett Packard Enterprise.”

“I’m excited for what the future holds for our Cloud business and am looking forward to helping our customers transform their enterprises through our strong portfolio of solutions.”

The news comes as HP’s board of directors officially approved the upcoming split of the company into two separate listed firms.

HP Inc will deal with computers and printers, and HP Enterprise will deal with the business-facing hardware and services.

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