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Software conglomerate didn't work

Engineering Manager
Current Employee
Has worked at Hewlett Packard Enterprise for 20 years
January 4, 2017
Sunnyvale, California
3.0
Doesn't RecommendNegative OutlookApproves of CEO
Pros

Large company stability.

People leaving creates opportunities to grow.

Education opportunities for career growth.

Great on-site gym at Moffett Towers.

Nice peers lower in the food chain.

Cons

HPE's software conglomerate model didn't work. The strategy to acquire diverse and independent software assets created a big structure with little in common. The more layers of management that were added, the more insulated the decision-makers became from the businesses that drive revenue and their customers.

Add a consolidated, bureaucratic, antiquated sales and fulfillment infrastructure, too many SKUs in the sales quiver, and no sales specialization, and you've got declining revenues and declining market relevance across the board, leading to decreased investment in R&D and overall attrition and decline.

Appearances of the spin-merge with Micro Focus so far make it appear that the strategy going forward will be largely unchanged.

Advice to Management

Re-diversify the software assets and re-specialize them in their respective markets. Hire leaders who understand the industry the individual software businesses cater to, so they can set business goals that are relevant in their given industry. Hire better, more inspiring leaders who can move the needle and generate real growth instead of filling out payroll rosters in low-cost regions just to save money from an ever-declining revenue pool.

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