HPE/Micro Focus numbers: HP(E) software revenue down $870m since 2012

In a brief write-up of HPE/Micro Focus from Paul Kunert:

Shareholders will also be asked to approve a $500m return of value, approximately $2.09 per share,” the statement to the City added.

Well, who doesn’t like money?

That said, performance is declining:

The [HPE Software?] business has shrunk in recent years, with turnover dropping from $4.06bn in fiscal 2012 ended 31 October to $3.19bn in fiscal 2016. Profit before tax during that period slipped too. In HPE’s Q1 ended January, sales in the software arm fell 8 per cent year-on-year to $721m.

All that M&A didn’t work out too well:

The software division at HPE is made up of a collection of separate units including Autonomy, Mercury Interactive, ArcSight, three businesses that alone cost HPE more than $16bn to acquire. Other elements include Vertica (buy price undisclosed) and relatively smaller IT management ops outfits.

For more context, see my notebook on the HPE/Micro Focus merger back in September, 2016.

Source: HPE dumps Grandpa Software in Micro Focus care home, hightails it

Yeti revenue $469m in 2015, opening bar, and shutting down cheaper rival RTIC

The largest cooler, the Tundra 350, costs $1,300. The company recorded $469 million in revenue in 2015.

In other Yeti news, the company said Thursday it has settled a lawsuit against another cooler maker that it accused of copying its product design. Texas-based RTIC Coolers has agreed to pay Yeti, stop selling all of the offending products and redesign its coolers, according to an announcement.

Stock up on rip-off Yeti cups while you can!

Link

Thoma Bravo Acquires Austin-Based, privately held Planview, PPM and Enterprise Architecture Tools

Passed from one PE firm to another: from Insight Venture Partners to Thoma Bravo. Sort of, one piece of coverage says “Insight Venture Partners will maintain its original 2014 capital investment in company.”

Carl Lehmann (he’s popped up a lot recently here!) and Liam Rogers at 451 have some numbers estimates:

Thoma Bravo’s acquisition of Planview comes three years after Insight Venture Partners acquired the WRM software company for an estimated $150m. The latest acquisition comes well above that – we estimate the deal size to be $800m. The multiple paid for the business is also substantially higher than the last purchase of Planview, which generated $175m in revenue in 2016. Insight will maintain an equity stake in the company, and Thoma Bravo becomes the new majority owner.

The rest of the excellent (as always) deal write-up also reminds me that Planview bought Troux back in 2015, consolidating this space a bit…albeit a pretty small market.

In addition to the Silicon Hills piece, see the official press release.

Link

Update on Dynatrace, around half a million in revenue

From Nancy Gohring:

In 2015, Dynatrace recorded $466.6m in revenue, including $30m from services and $60m from SIGOS, the mobile network-testing company that Keynote acquired in 2006. Dynatrace’s APM revenue was $376.6m, representing 15% growth over the previous year, and making it twice as large by revenue as two of its primary competitors – New Relic and AppDynamics.

She writes fine reports.

Source: Dynatrace tackles integration of Keynote and Ruxit

Why do you have to burn $4bn to add mobile apps to taxis?

In the first quarter of this year, Uber lost about $520 million before interest, taxes, depreciation and amortization, according to people familiar with the matter. In the second quarter the losses significantly exceeded $750 million, including a roughly $100 million shortfall in the U.S., those people said. That means Uber’s losses in the first half of 2016 totaled at least $1.27 billion.

Meanwhile, revenue:

Bookings grew tremendously from the first quarter of this year to the second, from above $3.8 billion to more than $5 billion. Net revenue, under generally accepted accounting principles, grew about 18 percent, from about $960 million in the first quarter to about $1.1 billion in the second.

It’s expensive to start a global, meat-space business, even if you’re “assetless”:

Uber, which is seven years old, has lost at least $4 billion in the history of the company.

I find the continuous usage of Uber as an example of “the way forward” in business unhelpful. Not because it’s not an interesting business, but because without these kinds of numbers in context, you think it’s easy. If you’re prepared to burn through $4bn before profit, sure thing!

The advantage established businesses should have is less spending to build a market: they just need to do better serving their existing customer base at first, not spend all that money to start from zero. What I find devilishly fascinating is why it’s so hard for those large organizations to take advantage of the assets they already have and why, possibly, it’s easier just to start from scratch, as Uber has been doing with that $4bn.

Source: Uber Loses at Least $1.2 Billion in First Half of 2016

How Companies Like Dollar Shave Club Are Reshaping the Retail Landscape

“After two years in business, Casper is on track to book $200 million in sales over the next year, but its success isn’t ensured.”

Also, a new category phrase: “the digitally native vertical brand.”

Source: How Companies Like Dollar Shave Club Are Reshaping the Retail Landscape

Pivotal Cloud Foundry 1.6, getting beyond the blinking cursor into the application layer

There’s a new release of Pivotal Cloud Foundry out this week. We’ve been seeing great pick-up from customers, and the nature of conversations I’ve been seeing while visiting them has been changing from operations, IaaS-driven topics to discussions about improving application development and delivery. This release also reflects that shift “up the stack.” Here’s my brief take on how things are going for Pivotal Cloud Foundry.

The most typical path to using Pivotal Cloud Foundry

First, this is how I see most customers arriving at Pivotal Cloud Foundry:

Who does Pivotal see as their toughest competition? According to Watters, that distinction belongs to AWS. Cloud customers often believe that AWS itself is enough. [James] Watters says that there wouldn’t even be the concept of cloud-native apps without Amazon, but “people need more than just Amazon to be successful.” Watters believes that some of Pivotal’s best customers are those who first tried to creates platforms themselves, but then asked “what’s the right thing to do for my organization?”

The rest of the piece is a good, brief overview of the new feature in Pivotal Cloud Foundry 1.6.

What I see in this release is a movement “up the stack” to address application architecture and development concerns. You can see this in the incorporation of Spring Cloud (which supports, among many other things, a microservices approach), support for .Net (almost every large organization wants and needs this for the way they develop applications), and the numerous integrations with ALM tools (like Cloudbees, GitLabs, etc.).

For many years – and still! – the focus of “cloud” has been on the infrastructure layer: setting up the “operating system” for the cloud, your big datacenter, and everything that results in that magical blinking cursor:

I think of this as the “blinking cursor” problem. You know that softly pulsing cursor: it’s the result of millions ­—if not billions! — of dollars spent on cloud projects. These “private cloud” projects see companies redoing how their IT department provides infrastructure. They move from physical to virtual management; move from manual ticket processing to self­-service, automated provisioning; and after efforts that must have seemed like building all of the furniture for a new IKEA store with just a pocket knife, they might end up with their own cloud. And then, after all of this, they’ve gotten the blinking cursor up! The servers are ready to use! Now the hard work of designing, developing, deploying, and managing the applications that run the business starts. There is little wonder that 95% of folks in [a poll asking “what went wrong with your private cloud project?”] were not completely satisfied with their private cloud projects.

I still see much of the conversation centering around getting the blinking curser up, and too little on how to create and manage good applications. So, obviously I like our new positioning “up the stack,” not only providing application-centric services, cloud-ified middleware, and the operations capabilities needed keep those application up and running.

In addition to the actual product, you can see this reflected on the team (the evangelist/advocate/community team) I’m on where we’ve added people who focus on explaining how to do better software development, in addition to the more operations-centric people we started with.

Momentum: customer and ecosystem growth and character

Momentum wise, I measure Pivotal Cloud Foundry based on customers and the overall Cloud Foundry ecosystem.

Customer wise, we’ve gone from about $40m in bookings in 2014 to a $100m annual bookings run-rate this year. Those are two, slightly different type numbers, but you can get a feel for the amount of business we’ve been doing, and more important, the high growth and fast traction we’re getting. What I like about out customer base is that they’re everyday, big brands and companies. This not only means I can better explain what I do to my non-tech friends and relatives, but also means we have a sustainable customer base: these Global 2,000 customers aren’t going away anytime soon, esp. if they keep up the strategy that brought them to Pivotal Cloud Foundry: transforming to a software defined business.

There’s a Cloud Foundry Summit this week in Berlin and it evidenced the ecosystem momentum around Cloud Foundry, the open source project that Pivotal Cloud Foundry is based on. There’s now just north of 50 members. When you look at those logos notice how many non-tech companies are on there: it’s still mostly tech companies who want to use or extend Cloud Foundry, but there’s a delightful number of non-tech companies who want to support the platform that’s supporting their business. And, of course, the work with Microsoft to support .Net brings that whole ecosystem very close as well. As I mentioned above, many of the every organization I talk with really wants .Net support. Another interesting thing to watch is growth in use of Azure; that’s an option that I hear companies exploring a lot now-a-days, and, indeed, as Microsoft said in the press around this release, “[t]he demand for Azure was so high that we already have Fortune 100 customers building their next-generation applications with Pivotal Cloud Foundry on Azure.”

Obviously, working at Pivotal I’m highly biased on all this. Still, I think there’s good evidence that things are panning out. My main hope, as always, is that we can help improve the state of software, globally, and, thus, improve how organizations are operating.

More on Pivotal Cloud Foundry 1.6:

Mirantis funding, revenue estimate

“‘We’ve gone from signing about $1 million in new business every month to $1 million every week,’ [Mirantis] CEO Adrian Ionel said recently.” You could do some spreadsheets if you spitballer non-new business and estimated when the switch over happened. Something like $12m to $20m a year?

Mirantis funding, revenue estimate