HPE’s financial results suggest it has not had a good time in the IT services and outsourcing business. Will it be third time lucky?
When HP completed the acquisition of Compaq in 2002, it also gained a valuable technical services arm, the former Digital Services business.
It later purchased outsourcer EDS, which became Enterprise Services at HPE. Through a joint venture , it is now offloading this business to CSC, and embarking on its third attempt at IT services under a new business arm called HPE Pointnext.
In HPE’s latest results , its software services business reported a 4% increase in revenue for the first quarter of 2017, but Enterprise Services (ES) declined by 11%.
