HP FY 4Q15 Earnings Call Notes

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HP’s (HPQ) CEO Meg Whitman on Q4 2015 Results

HP completed its separation

“On November 1st we completed the historic separation and became two separate independent public companies, HP, Inc. and Hewlett-Packard Enterprise. I couldn’t be prouder of how we executed on the incredibly complex separation.”

We are sunsetting our public cloud offering

“we announced in October that we will double down on our private and managed cloud capabilities and sunset our public cloud offering. This is the right move. It plays to our strength in private and managed cloud. We will continue to extend our cloud infrastructure leadership and integrate the public cloud element for our customers through a strategic partner-based model.”

Microsoft Azure will become our preferred public cloud partner

“Going forward, Microsoft Azure will become a preferred public cloud partner. HPE will serve as a preferred provider of Microsoft infrastructure and services for its hybrid cloud offerings. Overall, the move to a hybrid cloud environment present a significant growth opportunity for us and you can expect to hear more about our approach in coming months.”

PC Market was tough especially in consumer

“The PC market continued to be tough, especially in consumer where industry channel inventory remained elevated in the market. While we saw improved performance in the U.S., EMEA remained weak with market units declining 22% year-over-year in the third calendar quarter”

Expect PC to remain challenged for more quarters to come. Windows 10 has not been a catalyst for sales

“Looking ahead, we expect the PC market to remain challenged for more quarters to come. As expected, Windows 10 has not been a material catalyst for sales yet, but continues to receive favorable reviews.”

Every customer is looking to solve 4 IT problems

“these four for transformation areas is exactly what virtually every customers looking for. How do I transform my IT environment to a hybrid environment? How do I secure my digital enterprise? How do I enable analytics, big data analytics environment? And how do I drive workplace productivity. And we are aligning software service and hardware or infrastructure to that.”