HP Details Multiyear Roadmap to Turnaround the Company
Nefkens and Charhon will lay out an expected long-term operating model with HP Enterprise Services growing revenue at 3 to 5 percent annually, operating margins between 7 and 9 percent, and 15 to 25 percent return on invested capital.
Long term, the company expects to improve the mix of services revenue so that about 80 percent of HP Enterprise Services revenue comes from the company’s core data center, applications and business process outsourcing, and 20 percent of revenue is generated by the higher-growth, higher-margin services including cloud, security, mobility, applications modernization, transformation and integration, and information management and analytics.
HP Enterprise Group
Dave Donatelli, executive vice president and general manager of HP’s Enterprise Group, will address the company’s strategy to transform the infrastructure industry and lay the foundation for widespread cloud adoption. The HP Enterprise Group has brought together its industry-leading server, storage, networking, management software and technology services offerings to deliver Converged Infrastructure solutions for enterprise customers that will help them make this critical transition.
Donatelli will detail the company’s strategy to simplify the HP Enterprise Group’s product portfolio through common architectures and convergence. By selling Converged Infrastructure, Converged Cloud and Software-defined Data Centers, HP expects to grow over the long term both revenue and market share in the key areas of networking, storage and cloud, while increasing revenue from HP’s industry-leading x86 server business. In addition, the company’s Project Moonshot is developing new ultralow-power server technologies that will address the fast growing HyperScale server market. HP was the first large server vendor to announce these servers, and the company expects that by 2015, ARM and Atom servers will represent 15 percent of the global server market.
George Kadifa, executive vice president of HP Software, will detail how HP’s software portfolio has grown through organic innovation and acquisitions to become the world’s sixth largest software company. Today, HP Software serves almost the entire Fortune 100 with No. 1 and No. 2 leadership positions in key segments within the enterprise software market, which is expected to grow to a $54 billion market in 2015.