{"id":130301,"date":"2024-01-17T16:38:38","date_gmt":"2024-01-17T21:38:38","guid":{"rendered":"https:\/\/rbach.net\/?p=130301"},"modified":"2024-05-22T14:53:29","modified_gmt":"2024-05-22T18:53:29","slug":"hpe-buying-into-artificial-intelligence-market","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/hpe-buying-into-artificial-intelligence-market\/","title":{"rendered":"HPE Buying into Artificial Intelligence Market"},"content":{"rendered":"\r\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-112709 size-full\" title=\"HPE Buying into Artificial Intelligence Market\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Merger-4-e1629060973882.png?resize=98%2C65&#038;ssl=1\" alt=\"HPE Buying into Artificial Intelligence Market\" width=\"98\" height=\"65\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Merger-4-e1629060973882.png?w=98&amp;ssl=1 98w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Merger-4-e1629060973882.png?resize=75%2C50&amp;ssl=1 75w\" sizes=\"auto, (max-width: 98px) 100vw, 98px\" \/>In the first mega-deal of 2024, <a title=\"Hewlett Packard Enterprise\" href=\"https:\/\/www.hpe.com\/\" target=\"_blank\" rel=\"nofollow noopener\">Hewlett Packard Enterprise<\/a> (<a title=\"NYSE : HPE\" href=\"https:\/\/www.tradingview.com\/symbols\/NYSE-HPE\/\" target=\"_blank\" rel=\"nofollow noopener\">HPE)<\/a>, the offshoot of industry pioneer Hewlett-Packard, <a title=\"HPE to acquire Juniper Networks to accelerate AI-driven innovation\" href=\"https:\/\/www.hpe.com\/us\/en\/newsroom\/press-release\/2024\/01\/hpe-to-acquire-juniper-networks-to-accelerate-ai-driven-innovation.html\" target=\"_blank\" rel=\"nofollow noopener\">announced<\/a> a $14 billion acquisition deal with networking equipment maker <a title=\"Juniper\" href=\"http:\/\/www.juniper.net\/us\/en\/\" target=\"_blank\" rel=\"noopener noreferrer\">Juniper Networks<\/a>\u00a0(<a title=\"NYSE: JNPR\" href=\"https:\/\/www.tradingview.com\/symbols\/NYSE-JNPR\/\" target=\"_blank\" rel=\"noopener\">JNPR<\/a>). HPE is positioning the deal as an artificial intelligence play. HPE CEO <a title=\"Antonio Neri\" href=\"https:\/\/en.wikipedia.org\/wiki\/Antonio_Neri_(businessman)\" target=\"_blank\" rel=\"nofollow noopener\">Antonio Neri<\/a> claimed the acquisition was, &#8220;<em>&#8230; a major leap forward in our AI and hybrid cloud strategy.<\/em>&#8220;<\/p>\r\n<p><a href=\"https:\/\/www.hpe.com\/\" target=\"_blank\" rel=\"noopener\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-119845\" title=\"HPE logo\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/HPELogoWhite-1.png?resize=101%2C42&#038;ssl=1\" alt=\"HPE logo\" width=\"101\" height=\"42\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/HPELogoWhite-1.png?resize=75%2C31&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/HPELogoWhite-1.png?resize=150%2C63&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/HPELogoWhite-1.png?resize=1024%2C427&amp;ssl=1 1024w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/HPELogoWhite-1.png?resize=768%2C321&amp;ssl=1 768w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/HPELogoWhite-1.png?w=1373&amp;ssl=1 1373w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/HPELogoWhite-1.png?w=960&amp;ssl=1 960w\" sizes=\"auto, (max-width: 101px) 100vw, 101px\" \/><\/a>HPE is buying Juniper for $40 per share. That is a 32% premium above Juniper&#8217;s closing stock price on the day before the HPE announcement. The deal is expected to close in early 2025. Juniper CEO <a title=\"Rami Rahim\" href=\"https:\/\/en.everybodywiki.com\/Rami_Rahim\" target=\"_blank\" rel=\"nofollow noopener\">Rami Rahim<\/a> will lead the combined HPE networking business and report to HPE&#8217;s Neri. The deal will add $11.2 billion to HPE debt, including $1.7 billion of assumed Juniper debt. HPE will pay for the acquisition in part through cash from a <a title=\"HPE Is Selling Its 49 Percent Stake In H3C China Subsidiary\" href=\"https:\/\/www.crn.com\/news\/cloud\/hpe-is-selling-its-49-percent-stake-in-h3c-china-subsidiary\" target=\"_blank\" rel=\"nofollow noopener\">2023 sale<\/a> of its remaining interest in China-based joint venture H3C for $3.5 billion.<\/p>\r\n<h3>About Juniper<\/h3>\r\n<p><a href=\"http:\/\/www.juniper.net\/\" target=\"_blank\" rel=\"noopener\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-130338\" title=\"Juniper logo\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Juniper_Networks-rgb-black.png?resize=100%2C33&#038;ssl=1\" alt=\"Juniper logo\" width=\"100\" height=\"33\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Juniper_Networks-rgb-black.png?resize=150%2C50&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Juniper_Networks-rgb-black.png?resize=1024%2C341&amp;ssl=1 1024w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Juniper_Networks-rgb-black.png?resize=75%2C25&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Juniper_Networks-rgb-black.png?resize=768%2C256&amp;ssl=1 768w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Juniper_Networks-rgb-black.png?resize=1536%2C512&amp;ssl=1 1536w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Juniper_Networks-rgb-black.png?w=1800&amp;ssl=1 1800w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Juniper_Networks-rgb-black.png?w=960&amp;ssl=1 960w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Juniper_Networks-rgb-black.png?w=1440&amp;ssl=1 1440w\" sizes=\"auto, (max-width: 100px) 100vw, 100px\" \/><\/a>Juniper has been <a title=\"logo Juniper Networks jumps after WSJ reports on potential sale to HPE\" href=\"https:\/\/www.cnbc.com\/2024\/01\/08\/juniper-networks-jumps-after-report-saying-hpe-is-looking-to-buy-it.html\" target=\"_blank\" rel=\"nofollow noopener\">under performing<\/a> of late. The company\u2019s stock price fell about 8% in 2023, while the NASDAQ Composite gained 43%. The firm has struggled against <a title=\"Cisco\" href=\"http:\/\/www.cisco.com\/\" target=\"_blank\" rel=\"nofollow noopener\">Cisco<\/a>\u00a0(<a title=\"NASDAQ: CSCO\" href=\"https:\/\/www.tradingview.com\/symbols\/NASDAQ-CSCO\/\" target=\"_blank\" rel=\"noopener\">CSCO<\/a>) in the networking equipment market. Juniper Networks was founded in 1996. It has grown its networking product line-up, including routers, switches, and security products. But the company also runs <a title=\"Mist AI and Cloud\" href=\"https:\/\/www.juniper.net\/us\/en\/products\/mist-ai.html\" target=\"_blank\" rel=\"nofollow noopener\">Mist AI<\/a>. Mist AI is an AI and machine learning business that specializes in AI-powered network management.<\/p>\r\n<h3>About HPE<\/h3>\r\n<p>HPE has a long history of acquisitions.<\/p>\r\n<ul>\r\n<li>In 2001 the original HP purchased <a title=\"HP to buy Compaq for $25 billion\" href=\"https:\/\/www.cnet.com\/tech\/tech-industry\/hp-to-buy-compaq-for-25-billion\/\" target=\"_blank\" rel=\"nofollow noopener\">Compaq<\/a> for $25 billion.<\/li>\r\n<li><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-111709\" style=\"font-size: 16px;\" title=\"HPE has a long history of acquisitions.\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/stack-of-money-2.jpg?resize=80%2C100&#038;ssl=1\" alt=\"HPE has a long history of acquisitions.\" width=\"80\" height=\"100\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/stack-of-money-2.jpg?resize=120%2C150&amp;ssl=1 120w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/stack-of-money-2.jpg?resize=60%2C75&amp;ssl=1 60w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/stack-of-money-2.jpg?w=300&amp;ssl=1 300w\" sizes=\"auto, (max-width: 80px) 100vw, 80px\" \/>HP acquired services provider <a title=\"HP takes on IBM with $14 billion EDS acquisition\" href=\"https:\/\/www.eetimes.com\/hp-takes-on-ibm-with-14-billion-eds-acquisition\/\" target=\"_blank\" rel=\"nofollow noopener\">Electronic Data Systems<\/a> for $13.9 billion in 2008.<\/li>\r\n<li>In November 2009 HP acquired switch maker <a title=\"HP to acquire 3Com for $2.7B, to take on Cisco in networking\" href=\"https:\/\/venturebeat.com\/business\/hp-to-acquire-3com-for-2-7b-to-take-on-cisco-in-networking\/\" target=\"_blank\" rel=\"nofollow noopener\">3Com<\/a> for $2.7 billion.\u00a0<\/li>\r\n<li>2010 saw HP spend $2.35 billion on the acquisition of <a title=\"HP Closes 3PAR Acquisition\" href=\"https:\/\/www.crn.com\/news\/storage\/227500735\/hp-closes-3par-acquisition\" target=\"_blank\" rel=\"nofollow noopener\">3PAR<\/a>.<\/li>\r\n<li>In 2015, HP spun out its software, services, PCs, and printers to a new firm called HP Inc.. HPE kept the server, storage, networking, tech support, consulting, and financing for data center gear businesses.<\/li>\r\n<li>HP acquired <a title=\"https:\/\/www.itpro.com\/business-strategy\/acquisition\/365136\/hp-acquires-aruba-networks\" href=\"https:\/\/www.itpro.com\/business-strategy\/acquisition\/365136\/hp-acquires-aruba-networks\" target=\"_blank\" rel=\"nofollow noopener\">Aruba Networks<\/a> in 2015 for $2.7 billion.<\/li>\r\n<li>During 2017 HPE bought flash storage maker <a title=\"HPE buys Nimble Storage for $1 billion\" href=\"https:\/\/www.zdnet.com\/article\/hpe-buys-nimble-storage-for-1-billion\/\" target=\"_blank\" rel=\"nofollow noopener\">Nimble Storage<\/a> for $1 billion.<\/li>\r\n<li>HPE <a title=\"HPE completes acquisition of supercomputing leader Cray Inc.\" href=\"https:\/\/www.hpe.com\/us\/en\/newsroom\/press-release\/2019\/09\/hpe-completes-acquisition-of-supercomputing-leader-cray-inc.html\" target=\"_blank\" rel=\"nofollow noopener\">bought<\/a> Cray Supercomputers in 2019.<\/li>\r\n<\/ul>\r\n<h3>Artificial Intelligence<\/h3>\r\n<p>HPE has already benefited from AI industry growth. It told investors in November that orders for servers containing accelerated processing units for use in Artificial Intelligence Market had added up to 32% of its server segment. Overall net revenue for 2023 was $7.4 billion.<\/p>\r\n<h3><em>rb-<\/em><\/h3>\r\n<p><em>This latest HPE acquisition follows a familiar pattern to HPE&#8217;s other networking acquisitions over the last several decades. They seem to be trying to buy market share. And the results have been meh.<\/em><\/p>\r\n<p><em>When I started in the business it was <a title=\"Compaq Deskpro\" href=\"https:\/\/en.wikipedia.org\/wiki\/Compaq_Deskpro\" target=\"_blank\" rel=\"nofollow noopener\">Compaq Deskpro&#8217;s<\/a> on the desktop and <a title=\"HPE ProLiant Servers\" href=\"https:\/\/www.hpe.com\/us\/en\/hpe-proliant-servers.html\" target=\"_blank\" rel=\"nofollow noopener\">Proliant&#8217;s<\/a> were the go-to servers. We had an end-to-end 3Com network. Today we don&#8217;t buy HP desktops and the network guys don&#8217;t even know what a 3Com is. Both HPE and Juniper have struggled behind Cisco. It is unlikely the merger will change that.<\/em><\/p>\r\n<p><em>HPE seems to be hanging its hat on growth in the server sector to support AI deployments. I am sure they want to bundle the Mist Artificial Intelligence on a server and a 3PAR SAN and sell it to us as a network management\/security solution, at some inflated price. Who remembers <a title=\"HP OpenView\" href=\"https:\/\/en.wikipedia.org\/wiki\/HP_OpenView#History\" target=\"_blank\" rel=\"nofollow noopener\">HP OpenView<\/a>?<\/em><\/p>\r\n<p><em>Good luck HPE.<\/em><\/p>\r\n<div id=\"polls-37\" class=\"wp-polls\">\n\t<form id=\"polls_form_37\" class=\"wp-polls-form\" action=\"\/index.php\" method=\"post\">\n\t\t<p style=\"display: none;\"><input type=\"hidden\" id=\"poll_37_nonce\" name=\"wp-polls-nonce\" value=\"1f4cb9ab91\" \/><\/p>\n\t\t<p style=\"display: none;\"><input type=\"hidden\" name=\"poll_id\" value=\"37\" \/><\/p>\n\t\t<p style=\"text-align: left;\"><strong>Do you remeber HP OpenView?<\/strong><\/p><div id=\"polls-37-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li><input type=\"radio\" id=\"poll-answer-97\" name=\"poll_37\" value=\"97\" \/> <label for=\"poll-answer-97\">Huh?<\/label><\/li>\n\t\t<li><input type=\"radio\" id=\"poll-answer-98\" name=\"poll_37\" value=\"98\" \/> <label for=\"poll-answer-98\">I sure do - Cold chills<\/label><\/li>\n\t\t<li><input type=\"radio\" id=\"poll-answer-99\" name=\"poll_37\" value=\"99\" \/> <label for=\"poll-answer-99\">We are still running OpenView<\/label><\/li>\n\t\t<\/ul><p style=\"text-align: center;\"><input type=\"button\" name=\"vote\" value=\"   Vote   \" class=\"Buttons\" onclick=\"poll_vote(37);\" onkeypress=\"poll_result(37);\" \/><\/p><p style=\"text-align: center;\"><a href=\"#ViewPollResults\" onclick=\"poll_result(37); return false;\" onkeypress=\"poll_result(37); return false;\" title=\"View Results Of This Poll\">View Results<\/a><\/p><\/div>\n\t<\/form>\n<\/div>\n<div id=\"polls-37-loading\" class=\"wp-polls-loading\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/plugins\/wp-polls\/images\/loading.gif?resize=16%2C16&#038;ssl=1\" width=\"16\" height=\"16\" alt=\"Loading ...\" title=\"Loading ...\" class=\"wp-polls-image\" \/>&nbsp;Loading ...<\/div>\n\r\n<p><em><strong>Related article<\/strong><\/em><\/p>\r\n<ul>\r\n<li><a title=\"Top 10 network management technologies worldwide in 2023, by market share\" href=\"https:\/\/www.statista.com\/statistics\/1253318\/top-network-management-technologies-market-share\/\" target=\"_blank\" rel=\"nofollow noopener\">Top 10 network management technologies worldwide in 2023, by market share<\/a>\u00a0(<a title=\"Statista\" href=\"https:\/\/www.statista.com\" target=\"_blank\" rel=\"nofollow noopener\">Statista<\/a>)<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<p><em><a title=\"Ralph Bach\" href=\"https:\/\/rbach.net\/index.php\/new-resume\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ralph Bach<\/a>\u00a0has been in IT long enough to know better and has blogged from his\u00a0<a title=\"Bach Seat\" href=\"https:\/\/rbach.net\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bach Seat<\/a>\u00a0about IT, careers, and anything else that catches his attention since 2005. You can follow him on\u00a0<a class=\"broken_link\" href=\"http:\/\/www.linkedin.com\/in\/rb48334\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">LinkedIn<\/a>,\u00a0<a href=\"https:\/\/www.facebook.com\/ralph.bach.14\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/rbach48334\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>. Email the Bach Seat\u00a0<a href=\"mailto:\/\/bach.seat@gmail.com\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/em><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>HPE is buying Juniper in order to enter the artificial intelligence market &#8211; HP has a long history of buying market share.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3467],"tags":[3719,2750,32,168,2997,2934],"class_list":["post-130301","post","type-post","status-publish","format-standard","hentry","category-artificial-ntelligence","tag-3719","tag-artificial-intelligence","tag-business","tag-hp","tag-hpe","tag-juniper-networks"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/130301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/comments?post=130301"}],"version-history":[{"count":16,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/130301\/revisions"}],"predecessor-version":[{"id":131262,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/130301\/revisions\/131262"}],"wp:attachment":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/media?parent=130301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/categories?post=130301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/tags?post=130301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}