|Exam Name||:||Selling HP Enterprise Networking Solutions|
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|Updated On||:||April 19, 2019|
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HP enterprise CEO Meg Whitman HPhere's an extra exciting tidbit buried in a 316-web page report filed to the SEC about HP's plans to separate itself into two businesses.
the brand new HP enterprise company might not be in a position to promote itself for 2 years.
This limit is a component of the tax-free repute that the separation will get.
notably, the report says that HPE could be "prohibited beneath the tax matters contract" from "entering into any transaction pursuant to which all or a component of the shares of Hewlett Packard commercial enterprise regular inventory could be obtained."
on the same time, HPE could be looking to make acquisitions, even big ones, the document says. "as a way to pursue our approach efficaciously, we should establish candidates for and effectively finished business combination and investment transactions, some of which could be gigantic or advanced."
It seems like HP's management remains dreaming of doing a big-online game altering acquisition after HP finishes its cut up, probably even purchasing EMC, Wall street analyst Brian Alexander from enterprise Raymond James speculated in a research notice on Monday.
"while we concede that a few of this could be ordinary language, it openly suggests huge transactions are possible (e.g., EMC)," Alexander writes.
HP and EMC have been rumored to be in mega-merger talks last fall. but the talks reportedly fell apart. presently after that, HP CEO Meg Whitman introduced that HP changed into splitting itself in two.
The separation hasn't stopped HP from making large acquisitions, together with a $3 billion purchase of wireless networking business Aruba in March, however buying Aruba is hardly on the scale of purchasing EMC, which has a $fifty one billion market cap.
still, HPE will nonetheless ought to do whatever to turn itself around.
HP expects to comprehensive the spin out via the conclusion of its fiscal year in October and then HPE will consist of a handful of corporations that sell technology to organisations (servers, networking gadget, software, consulting) with basically every single product line declining in revenues, HP says.
"We nevertheless suppose HP business needs to seriously change by way of acquisition,"Alexander concludes.
Hewlett-Packard is near promoting the majority stake in its H3C applied sciences Co. networking business to Tsinghua Unigroup Ltd., in response to the Wall road Journal.
The Journal is reporting that Tsinghua Unigroup "has emerged because the favored bidder in an auction of 51 p.c" of the H3C enterprise. The deal may additionally consist of a separate deal for a server enterprise in China, the report mentioned.
HP would now not comment on the file.
[Related: CRN Exclusive: HP CEO Meg Whitman On Splitting The Company, Impact On Competitors And A Thirst For Acquisitions ]
H3C, which has a market cost of about $5 billion, become based via a joint venture between chinese networking large Huawei applied sciences and networking equipment maker 3Com, which HP acquired in 2010 for $2.7 billion.
HP, like other U.S.-based businesses, has found it difficult to compete for business in opposition t chinese based mostly IT providers. simply six months ago, chip big Intel invested $1.5 billion to acquire a minority 20 % stake in a semiconductor enterprise with Tsinghua Unigroup.
"For HP to develop its business in China, or not it's the right choice," mentioned Bob Venero, CEO of Future Tech, a Holbrook, N.Y.-primarily based HP companion. "in case you examine corporations making an attempt to scale and grow in China, you need chinese ownership. it's disappointing that American businesses have to divest in a condition like this, notably with the entire earnings China derives from manufacturing U.S.-based items."
within the most recent quarter, HP's networking business turned into down eleven %. as a result of the revenue fall-off, HP CEO Meg Whitman informed analysts on the quarterly revenue name that HP had made management alterations in China and additionally was in the method of realigning revenue incentives.
published MARCH 26, 2015
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Hewlett-Packard will finally announce end-of-sale for the VCX VoIP system it acquired with 3Com -- something longtime VCX solution providers maintain is a big mistake given the product's loyal channel following and potential to make HP a truer end-to-end networking competitor against Cisco Systems.
HP representatives told CRN the forthcoming move would affect most VCX products, including servers and gateways. HP, Palo Alto, Calif., will send the formal end-of-sale notice later this month, with the actual end-sale date expected to be in December 2012.
HP will sell phones and software licenses into 2013 and will continue to support VCX customers for the HP-standard five years. It also already is assisting larger VCX customers with migration strategies. But for all intents and purposes, 2012 will be VCX's swan song, and HP will exit the voice market, pointing partners and customers toward VoIP and unified communications solutions from strategic allies such as Microsoft, ShoreTel and Aastra.
"It is in our best interest to focus on those partnerships and de-emphasize our development of products like the VCX," Mark Hilton, HP Networking product line manager, LAN Edge Solutions, told CRN. "We're not going to cut this off at the knees. But this is the right time to transition off of that platform."
[Related: HP Hangs Up On 3Com VoIP VARs ]
HP's decision bookends the long decline of a once-proud set of VoIP products many partners say got lost in the shuffle following 3Com's implosion in the latter part of the last decade, and then were largely ignored by HP following its $2.7 billion acquisition of 3Com in 2010.
Solution providers initially were hopeful HP would focus on the platform and make the necessary R&D investments to keep it competitive with Cisco, Avaya and other VoIP players. But HP in January 2011 told CRN it had shifted VCX into "maintenance mode," meaning it would see only basic platform updates and support.
The handling of that process -- including persistent rumors that HP had considered selling the VoIP unit -- was much criticized by members of the former 3Com voice reseller community, who said an in-house HP VoIP solution would benefit the whole HP Networking ecosystem because of how voice solutions create demand for data infrastructure.
Solution providers said HP hasn't communicated much about VCX's future, save for a vaguely worded email sent to partners about six months ago saying that VCX's current software release, 9.8, would be its last update and that an end-of-sale announcement was on the horizon.
"They've told us zero," said Glenn Conley, president and CEO of Metropark Communications, a St. Louis-based solution provider and longtime VCX partner. "I've reached out a multitude of times. They don't want to talk about it."
Demand for the product has continued to decline in the past two years, HP's Hilton said, and it no longer makes sense for the company to invest in it. HP's global PBX system market share as of 2011, according to the Dell'Oro Group, already was less than 1 percent of a market heavily dominated by Avaya and Cisco and choked with challengers including Microsoft, ShoreTel, Mitel, Alcatel-Lucent and Siemens Enterprise Communications.
But solution providers said that if interest in VCX is dwindling, it's partly because HP did not put any marketing muscle behind it and failed to nurture the still-passionate community of former 3Com VoIP dealers.
"They're willing to buy Palm and get rid of it, and spend how many billion on Autonomy?" said Mark Essayian, president of KME Systems, a Lake Forest, Calif.-based solution provider. "I get that it is a small product and that it's half a percent of the voice networking [market] for them. But you could spend $100 million on it and make it a [killer] product. You have a community that supports it already."
"I really think that they missed the boat on this," said Robert Betzel, president of Infinity Network Solutions, a Macon, Ga.-based solution provider. "They were going to be another player next to Cisco that can give you end-to-end. Now it's a piecemeal deal with different manufacturers. When it's a piecemeal deal, who really cares if it's an HP router or switch? You lose that seamless integration and seamless continuity you get from end to end."
NEXT: HP Directs Partners To Lync, ShoreTel, Aastra
As HP winds down VCX, the company will be directing customers and channel partners toward VoIP and UC solutions from a handful of strategic partners.
Specifically, HP is steering UC customers with 250 seats and above toward Microsoft's fast-growing Lync platform, HP's Hilton said. For smaller customers, HP will focus on partnerships with ShoreTel and Aastra, the former predominantly in North America and parts of Asia, and the latter mostly in the EMEA region.
"You can't have a strong relationship with your partners if you're competing with them," Hilton said. "Routing, switching, management -- these things are our business. From a business perspective, it makes more sense to partner."
HP also partners with Avaya, though primarily for its direct and enterprise services engagements, and Hilton said HP is also fine with solutions using other vendors' products that can interoperate with HP's, including Cisco.
Not surprisingly, HP's Microsoft Lync relationship has blossomed. Having been strategic allies for decades, the two tech giants in May 2009 unveiled a $180 million, four-year global initiative to partner on integrated UC solutions that extended to Microsoft's Office Communications Server (OCS), the forerunner of Lync. In September 2011, HP released a Lync-optimized desk phone.
That relationship has continued, and earlier this week HP unveiled an SMB channel initiative at Microsoft's Worldwide Partner Conference in Toronto. It's the first time HP and Microsoft have jointly come out with a specific UC channel program, and it includes tested and validated reference architectures for customers of 250 to 2,500 employees, customizable demand-generation campaigns, a range of sales and technical training resources, inclusion in Microsoft's Solution Incentives Program, and marketing collateral.
"With the HP UC&C with Microsoft Lync solution, you have access to the most comprehensive Lync portfolio in the marketplace from two Gartner Magic Quadrant leaders," wrote Terry Ann Fitzgerald, SMB solutions marketing manager for HP Networking, in a Monday post to the HP Networking corporate blog. "The channel toolkit will help you start new conversations, expand your revenue opportunities and shorten your sales cycle."
"We know Lync is taking off; we work with some [partners] who we think are strong partners with a good future in UC, and we think it's in the best interest of our customer base," Hilton told CRN. "Looking at something like VCX, it's a good, solid product. But investment is prohibitive, and it's crowding and confusing the market. A few of our partners are excited at the opportunity and are jumping in with both feet with Microsoft. If they don't want to change, it'll be more difficult for them to be competitive longer term."
"We have been consistent in executing on our [UC and collaboration] strategy with choice and flexibility," said Kash Shaikh, director of marketing for HP Networking. "All of these partners we are working with are best-in-class and have been innovating in this area."
Most VCX dealers already have moved to focus on other platforms -- "HP essentially killed it when they said [maintenance mode]," Infinity's Betzel said -- but their passion remains. Earlier this year, for example, a website called "Long Live the VCX" went live, promoted by a LinkedIn group formed around HP Networking-related issues.
It includes a prompt for site visitors to leave opinions on the future of the VCX.
"HP the manufacturer of the VCX needs to be enlightened," reads the site's mission statement. "They are ending the life of a great product right before your eyes. Customers, partners, 3rd party vendors WANT this product!!! It is our responsibility to let HP know what a huge mistake this is. We want HP to put its full force behind the VCX and make it the 'Voice' product for the future. We will not accept 3rd party solutions ... we want a product manufactured and supported by HP. By providing a complete portfolio, we can compete and win against other solutions."
Solution providers agreed that HP is missing out on end-to-end networking potential.
"I sell an end-to-end solution. I don't sell best-of-breed," Conley said. "If you buy a phone from me, that phone is going to plug into an HP switch, and into an HP router and, all in all, an HP solution. I do that because I sell a lot of those. I want an HP solution."
Conley said he has enough VCX product to support customers in the short term and is looking at other platform options. KME's Essayian promotes Microsoft Lync and ShoreTel, and sells VoIP platforms such as Digium Switchvox. Infinity's Betzel is now emphasizing Cisco for voice.
"They're making what they think is the best business decision for the company, so I don't fault HP for that," Betzel said. "But we really believe in end-to-end computing, so Cisco is our option. We believe, from SMB to enterprise, that when you can get one manufacturer that has integrated all of the features you need, you get the best outcome. Cisco has that fit."
"If they really knew the direction of VoIP and understood it, they wouldn't be making this decision," said the CEO of an HP solution provider who's been selling 3Com voice systems and their forerunners for decades. "When it comes to voice, especially, customers want one throat to choke. ShoreTel, for example, doesn't own the network, and in that case, if there are problems with a Cisco network or an HP network, ShoreTel can point its finger at that network and say, 'It's not our product; we don't care if it works or not.'"
Most IT buyers prefer end-to-end solutions for the less-hassle factor alone, the solution provider argued. He said he would move his business to Cisco when HP's official VCX announcement comes out.
"Cisco won this market because they could be 'one throat to choke, ' " he said. "HP is making a huge mistake here."
NEXT: What HP Should Have Communicated To VARs
Solution providers fault HP on its communication around VCX above all. With so much speculation about the death of the product, the channel has had little to no air cover for helping customers make decisions.
"This is a credibility issue. I'm not going to sell and my customer's not going to buy something if I think you're going to get out of that market in a month or two," Metropark's Conley said. "If you'd give us some stability, tell us there's a future for this, I'm out there waving the flag for you today. You're dumping what is still a thriving business for a lot of dealers."
"We have a lot of clients that still have 3Com voice in place," Infinity's Betzel said. "A lot of clients buy these things thinking they're going to be running them for eight to 10 years. I have one VCX client that's got it running at 22 sites. I have to tell my clients to get prepared for something that's going to come sooner than they're prepared for, so I need a clear message from HP on how they're going to support these platforms for people that want them."
KME's Essayian said that by pursuing a best-of-breed, multivendor approach instead of an end-to-end sale, HP is opening itself up to losing deals.
"I will sell HP servers and switches, but if a customer comes to me and says, 'We want to put this on a Dell,' and/or I can virtualize it anyway, I'll do that," he said. "HP doesn't seem to get telephony, and they have a middle management layer that doesn't seem to understand what goes into a voice network. What partner is going to stay loyal to HP on just a commodity switching sale?"
Essayian said he's happy with his local team of HP reps and makes no presumption about how to run a $127 billion company. But he agreed with other solution providers that HP is leaving behind a potential-packed VoIP opportunity with a built-in, loyal channel following.
"The point is this product has a toehold," Essayian said. "Yes, we're a minority, yes we're a little crazy, but we're also willing to sell the [crap] out of this product. If you look at it even cursorily, how much data pull is there when you sell voice? It can be a holistic sale."
"I am still a believer that voice pulls the data network along," added Betzel. "When the data network doesn't matter, and it's 'I just need a 24-port gig switch,' they're just looking around for someone who's got one with reasonable speeds and feeds at the best price. Cisco's the one that's gone after this intelligently. Video is so important to Cisco because it forces the conversation on upgrading the data equipment."
The ex-3Com dealer channel is making other plans. Solution providers told CRN they're not exactly expecting an HP reversal.
"We've all moved on," Betzel said. "I don't think you'll find anyone still betting the house on HP voice."
PUBLISHED ON JULY 11, 2012
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MIDDLETON, Massachusetts, April 15, 2019 /PRNewswire/ -- Quadrant Knowledge Solutions announces the addition of the "Market Outlook: Network Access Control (NAC), 2019-2024, Worldwide" report to their strategic market outlook offerings. This research service includes a detailed analysis of the global Network Access Control (NAC) market regarding short-term and long-term growth opportunities, emerging technology trends, market trends, and future market outlook.
NAC technologies have evolved significantly from the early focus on authentication and authorization of managed endpoints to focus on securing BYOD, guest-access, and IoT devices. Leading NAC vendors have improved their technology value proposition with functionalities to support IoT, IIoT and OT devices, granular segmentation, user behaviour monitoring, enhanced visibility, and security automation & orchestration capability for automated threat detection and response.
The key NAC value proposition of providing comprehensive visibility, guest management, BYOD management, and granular policy enforcement remain the key market drivers. Additionally, growing threat landscape due to IoT/IIoT devices is further expanding the market adoption and growth.
Quadrant Knowledge Solutions NAC Market research provides competition analysis and ranking of the leading NAC vendors in the form of SPARK Matrix. This study includes SPARK Matix and competition analysis of key vendors including Auconet, Cisco, Extreme Networks, ForeScout, Fortinet (Bradford Networks), Genians, HP Enterprise, Impulse, InfoExpress, NETSHIELD, Portnox, and Pulse Secure.
NAC market outlook research provides strategic information for technology vendors to better understand the market supporting their growth strategies and for users to evaluate different vendors capabilities, competitive differentiation, and its market position.
SPARK Matrix: Quadrant Knowledge Solutions' SPARK Matrix (Strategic Performance Assessment and Ranking) provides a visual representation and strategic insights on how each vendor ranks against their competitors, with respect to various performance parameters based on the category of technology excellence and customer impact.
Market Background, Key Market Trends, and Market Drivers
Market Adoption and Deployment Trends
Regional Trends and Forecasts
Industry Trends and Forecasts
Competition Landscape & Analysis
Keywords: Network Access Control, NAC Market, Endpoint Visibility and Control, IoT Security, Security Automation and Orchestration, Software Defined Perimeter, SDP, Competitive Evaluation, SPARK Matrix, Market Research, Market Size, Market Forecast, Technology Trends
Market Outlook: Privileged Access Management (PAM), 2019-2024, Worldwide Market Outlook: IT Risk Management (ITRM), 2019-2024, WorldwideMarket Outlook: Vendor Risk Management (VRM), 2019-2024, Worldwide
Quadrant Knowledge Solutions is a global advisory and consulting firm focused on helping clients in achieving business transformation goals with Strategic research, consulting, and advisory services.
Contact:Riya Meharrmehar@quadrant-solutions.com See available research: https://quadrant-solutions.com/market-research/
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