Hewlett Packard Enterprise HPE recently inked a definitive agreement to acquire California-based OpsRamp, an information technology (IT) operations management company, to integrate its edge-to-cloud platform, HPE GreenLake, with OpsRamp’s hybrid digital operations management solution.
Founded in 2014, OpsRamp is a software-as-a-service platform that discovers, monitors, observes, automates and manages IT infrastructure, cloud resources, workloads and applications for hybrid and multi-cloud environments.
The integrated HPE solution, available standalone as-a-service, is likely to lower the operational complexity of multi-vendor and multi-cloud IT environments that are in the public cloud, colocations and on-premises. This unified approach will allow the company’s existing clients to manage IT investments more efficiently and remediate incidents faster.
The buyout, which is anticipated to conclude in third-quarter fiscal 2023 subject to regulatory approvals and customary closing conditions, will fortify HPE’s leadership in the hybrid cloud while expanding the reach of the HPE GreenLake platform into IT Operations Management.
Hewlett Packard Enterprise Company Price and Consensus
Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote
The HPE GreenLake solution offers customers better visibility into resource utilization across co-located and public cloud-based workloads. The services ensure the administration of applications and data. HPE’s GreenLake service suite provides customers with an agile, flexible, pay-per-use cloud experience, thereby eliminating the need for any major upfront capital investment.
The edge-to-cloud platform continues to win back-to-back deals. Recently, in January, a leading Japan-headquartered data print services and business process outsourcing provider, TOPPAN FORMS CO., LTD., selected HPE GreenLake to create a scalable, secure and agile services infrastructure that will grow with its business. In the same month, a branch of Brazil's largest medical cooperative group, Unimed Grande Florianópolis, chose the platform to accelerate innovation and deliver new digital touchpoints and services to healthcare patients across the country.
Earlier in January, the UK’s leading electrical wholesale supplier, City Electrical Factors (CEF), selected HPE GreenLake to accelerate its digital transformation journey. The GreenLake implementation helps CEF improve scalability and flexibility across IT and accelerate its cloud journey in additional regions.
HPE has been pursuing acquisitions to focus more on high-margin hybrid IT models that leverage on-premises and cloud-computing power. Earlier in March, the company inked a definitive agreement to acquire Axis Security, a cloud security provider and extended its edge-to-cloud security capabilities by offering a unified Secure Access Services Edge (SASE) solution that will meet the growing demand for integrated networking and security solutions delivered as-a-service.
The buyout, which is anticipated to conclude in the second quarter of fiscal 2023 subject to customary closing conditions, will fortify HPE Aruba’s SASE solutions with integrated cloud security and Software-defined Wide Area Network (SD-WAN) in a single offering. Combining HPE Aruba’s existing SD-WAN and network firewall solution with Axis Security’s cloud-based offerings, the company will provide a complete edge-to-cloud SASE solution that will ensure Zero Trust security controls applicable to both partners and devices on campus, branch, home or anywhere.
In February, the company signed an agreement to acquire a private cellular technology provider, Athonet, to expand its overall private 5G offerings to both enterprises and communication service providers (CSP).
Incorporating Athonet’s technology into its existing CSP and Aruba networking enterprise offerings, HPE intends to create a private networking portfolio that accelerates digital transformation from edge to cloud.
In January, the company acquired Pachyderm, a San Francisco-based startup delivering software, based on open-source technology to automate reproducible machine learning pipelines that target large-scale artificial intelligence (AI) applications.
Integrating Pachyderm’s reproducible AI solutions in a single integrated platform to provide an advanced data-driven pipeline, that automatically refines, prepares, tracks and manages repeatable machine learning processes, are used throughout the development and training environment. Hewlett Packard expanded its AI-at-scale solution portfolio. This enabled the company to go for quick development and deployment of large-scale AI applications with benefits like data lineage, data versioning and efficient incremental data processing.
Hewlett Packard views AI, Industrial IoT and distributed computing as the next major markets. In 2021, the company acquired four businesses, Ampool, Zerto, Determined AI and CloudPhysics, which expanded its capabilities and product portfolios in the fast-growing cloud space, including software-defined networks and converged and hyper-converged infrastructure.
Zacks Rank & Stocks to Consider
Hewlett Packard currently carries a Zacks Rank #4 (Sell). Shares of HPE have plunged 15.3% in the past year.
Some top-ranked stocks from the broader Computer and Technology sector are Airbnb ABNB, Baidu BIDU and Fabrinet FN. While Airbnb and Fabrinet sport a Zacks Rank #1 (Strong Buy), Baidu has a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Airbnb’s first-quarter 2023 earnings has been revised northward from a loss of a penny to 14 cents per share over the past 60 days. For 2023, earnings estimates have moved up by 58 cents to $3.38 in the past 60 days.
ABNB's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 57.2%. Shares of the company have declined 26.9% in the past year.
The Zacks Consensus Estimate for Fabrinet's third-quarter fiscal 2023 earnings has been revised 7 cents upward to $1.90 per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by 23 cents to $7.71 in the past 60 days.
FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 9.8% in the past year.
The Zacks Consensus Estimate for Baidu’s first-quarter 2023 earnings has been revised 17 cents northward to $2.60 per share over the past 30 days. For 2023, earnings estimates have fell by 0.8% to $11.53 per share over the past 30 days.
BIDU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 45.5%. Shares of the company have increased 2.3% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report