HPE's results were mixed by product line. For instance server revenue was down 5% to $4.5 billion. Networking revenue, boosted by the acquisition of Juniper Networks, was $2.8 billion, up 150% from a year ago. Hybrid cloud revenue was $1.2 billion, down 12% from a year ago.
HPE, reporting earnings for the first time since it closed the acquisition of Juniper Networks, delivered better-than-expected fiscal third quarter results with a fourth quarter outlook that was a bit light.
HPE raised its savings target for the Juniper Networks acquisition, set its integration teams, said no customer will be left behind and provided the first installment of vision for the combined companies.
HPE's has closed the acquisition of Juniper Networks in a move that will double its networking business.
Hewlett Packard Enterprise delivered better-than-expected second quarter earnings as it saw strong demand for its AI servers and hybrid cloud.
Hewlett Packard Enterprise saw server revenue surge in a mixed first quarter, but the company cut its outlook for the second quarter and fiscal year.
The Department of Justice sued to block Hewlett Packard Enterprise's planned acquisition of Juniper arguing that the combination will hamper competition in the enterprise wireless networking market.
HPE reported better-than-expected fourth quarter results as server revenue surged due to AI demand. HPE also said that it expects its acquisition of Juniper Networks to close in early 2025.
Hewlett Packard Enterprise launched an AMD-powered system designed for complex AI model training. The HPE ProLiant Compute XD685 leverages 5th Gen AMD EPYC processors and AMD Instinct MI325X accelerators.
Hewlett Packard Enterprise said its third quarter was driven by AI systems as revenue was up 10% from a year ago.
AI Begins And Ends With Nvidia
Despite the massive buzz on AI, only a few core companies that power the Age of AI will succeed. The high capital costs of research and development investment, the time required to take a product to market, and the ability to cross competitive moats create a massive barrier to entry. In fact, only a few vendors have shown significant profits in AI:
