“Operational difficulties fed into the financial results for Micro Focus’s half-year ended 30 April 2018 with sales down 8 per cent year-on-year to $1.974bn. Nearly all of the revenue lines were down with the exception of subscription and SaaS.
Licence sales dropped 18.4 per cent to $396.4m, maintenance was down 3.5 per cent to $1.109bn, and consulting dropped 27.5 per cent $149.9m.”
“Amazon.com Inc. is famous for its losses over the years. But even in the heyday of the dot-com bubble, the e-commerce giant never came close. Amazon’s biggest loss was in 2000—a $1.4 billion embarrassment, or about $2 billion adjusted for inflation. Most years, Amazon turns a profit, albeit a small one. What Uber backers can point to, though, is a nearly unmatched pace of sales growth. Even as Uber’s revenue reached $2.3 billion in the fourth quarter of 2017, its annual growth rate remained strong, at about 90 percent compared with 2016. That’s faster than most tech companies with a similar valuation. Only one U.S. tech company of Uber’s size, Micron, grew at anything close to that last year.”
Original source: Uber Spent $10.7 Billion in Nine Years. Does It Have Enough to Show for It?
“The larger problem, as we have pointed out before, is that it is very difficult to make a buck in the server, storage, and networking business with so many big buyers pushing down prices, enterprises shifting some compute from their own datacenters to public clouds (and therefore some of their budgets from capex to opex), and so many companies competing to sell wares to datacenters.”
Original source: The New HPE Sheriff Lays Down The Hybrid IT Law
When Autonomy was negotiating a sale to an end user, but couldn’t close the sale by quarter’s end, Egan would approach the resellers on or near the last day of the quarter, saying the deal was nearly done. Egan coaxed the resellers to buy Autonomy software by paying them hefty commissions. The resellers could then sell the software to a specified end user – but Autonomy maintained control of the deals and handled negotiations with the end user without the resellers’ aid. There’s no way these transactions could be revenue.
In the case of HP and Mercury, the slow-down was particularly unfortunate because the acquisition came just as enterprise application development was moving from proprietary protocols and GUIs to web applications talking HTTP. Mercury’s powerful and extremely customisable products were arguably overkill for simple web applications, and a new generation of tools was beginning to emerge that was dedicated for that purpose. Given its singular focus on testing, and based on what I know of the company culture pre-acquisition, I am quite certain that an independent Mercury would have addressed the challenge head on and remade itself for that new world. After all, Mercury was fully aware of web applications, offering services that would simulate user access from locations around the world to have a continuous view on sites’ performance as experienced around the world. Continue reading “Mercury’s decline in HPE”
Make no mistake – Cloud is a forcing factor for pretty much all of the issues facing incumbent enterprise suppliers today. Cloud is putting pressure on all enterprise software markets – applications, hardware, networking, security, services, software, storage etc.
That said, I’d theorize that these are all reliable businesses with reliable customer bases. Their revenue may be declining and they may not be all “SaaS-y,” but for the right price PE firms could probably do alright.
No one really knows what the deal with “private cloud” is. There seems to be a coffin, but as we discuss, it’s unclear how far we are from the final nail. We also discuss HP splitting, HP shutting down their private cloud, a slew of small acquisitions, and Matt Ray’s take on the recent OpenStack Summit in Tokyo.
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I don’t think anyone expects new entrants into the public cloud market, right? Seems locked with AWS, Azure, MSFT. All others are “managed cloud”/enterprise cloud gambits. Oracle not doing so – Don’t forget IBM!
“It’s not a microservice-built application; it’s not moving to a true CI/CD model; but it gets them incrementally on that path, and they start to get some value more short-term from that.”
“That’s where we focus: hit ’em where their problems are today,” he says. “‘Skate to where the puck is going,’ to use the Gretzky saying, but at the same time don’t skate out of the rink. Don’t come at them and say, ‘Hey, we have the microservices platform for you.’ ‘Awesome. What am I going to do with my SAP system?’ Getting that balance right is what we’ve been focused on.”
Hello again, welcome to #036. Today we have 42 subscribers, so we’re +/0. Steady as she goes! I’d love to hear what you like, dislike, your feedback, etc.: firstname.lastname@example.org. (If you’re reading this on the web, you should subscribe to get the daily email.)
The addition of Marten to HP’s world-class Cloud leadership team will strengthen and accelerate the strategy we’ve had in place for more than three years, which is to help businesses build, consume and manage open source hybrid clouds,“ said Whitman. "Marten will enhance HP’s outstanding bench of Cloud executives and expand HP Helion capabilities, giving customers more choice and greater control of private and hybrid cloud solutions.
As you can conclude from the discussion, I find it both perplexing and exciting. As we say in SDT, from a customer perspective “I want an AWS-compatible cloud that just works (as much as a private cloud can)” it makes sense; from a portfolio perspective (“which HP cloud did you want buy?”) it seems to add confusion. I suggest giving them some time to explain their plans. Should be fun in Paris at the upcoming OpenStack Summit.
We have a 451 Deal Analysis report on this in the works and it’ll hopefully be out tomorrow. In the mean time, check out Barb Darrow’s quick coverage.
I signed up for a paid account at MindMeister today. I think I like it. I’m eager to see how the mobile part works.
Also, it was cool that it has 2FA and uses the Google Authenticator. I poked around and it turns out Evernote does as well. For some reason, I love that!