HPE sells off 'non-core' software assets

Infrastructure dwindling? Just because data and computing is moved to "The Cloud" does not mean that infrastructure is dwindling. I fact it may grow. The cloud needs infrastructure. You can't cheat the laws of physics, data must be stored somewhere and CPUs must have a home as well. There is money to be made in infrastructure. I smell it.

It also makes sense to spin off companies which are not core. HP Software has been struggling for sometime, managing software can be very difficult and HPE knows hardware but not software. Also, Whitman has said she wants a nimble company. A large company cannot be nimble. So paring companies down might be a good move.

> Infrastructure dwindling? Just because data and computing is moved to "The Cloud" does not mean that infrastructure is dwindling.

Everybody just buys their capacity from everybody else.

https://xkcd.com/908/

not quite

"HPE gets $2.5bn in cash and a 50.1 per cent ownership of the new entity, which will continue to be called Micro Focus."

This isn't quite right (as I understand it). HPE's *shareholders* get a 50.1% stake in Micro Focus. *HPE* does not. Basically what's happening is that Micro Focus is buying a bunch of HPE's (as you say) 'non-core software assets', but because the deal is so large, they can't just pay for them in cash; so instead, they compensate HPE's shareholders for the purchase with MF stock. But it's not HPE *itself* which gets the MF stock, it's HPE's shareholders directly. Rather than owning a stake in HPE which now owns a stake in MF, HPE shareholders directly become MF shareholders as well.

"Core"="Bone"

"HPE announced it was selling off a load of non-core software assets"

And once they've stripped this joint to the bone, they'll just throw the bone to the dogs.

High fives and bonuses all around, and off other companies to lather, rinse, repeat.

Does anyone in the upper ranks actually run a company any more, or is it all just "asset monetizing" until the company is gone?

For those of you familiar with HPE, you'd realise that software going will have almost zero impact on what remains from a day to day perspective. EG and software barely interacted anyway. It does make HPE a manageable acquisition target though. Someone like MS might fancy buying the company that makes all the servers for its' cloud anyway.

And Meg gets a load more shares to flog to fund her political ambitions

Are Meg Whitman and Mary Berry the same person?

Are Meg Whitman and Mary Berry the same person?