HOUSTON - Hewlett Packard Enterprise (NYSE: NYSE:HPE) has expanded the capabilities of its HPE Aruba Networking Central platform, introducing new artificial intelligence (AI) insights and functionalities. This includes third-party network device monitoring for vendors such as Cisco (NASDAQ:CSCO), Juniper Networks (NYSE:JNPR), and Palo Alto Networks (NASDAQ:PANW) through the integration of OpsRamp.
The enhanced features of HPE Aruba Networking Central are designed to improve network device configuration, expand network observability, and provide AI-generated network optimizations. These improvements are informed by AI insights derived from a growing customer base and a significant increase in network-managed devices and customer endpoints data.
David Hughes, HPE Aruba Networking's chief product officer, emphasized the advancement of AI in networking with these next-generation capabilities. He stated that the expansion would offer customers a substantial advantage in managing and predicting network performance.
The integration of OpsRamp, acquired by HPE in 2023, aims to minimize blind spots in heterogeneous networks and facilitate health monitoring and troubleshooting. HPE Aruba Networking Central's Digital Experience Monitoring (DEM) has also been improved with the native integration of User Experience Insight (UXI) monitoring.
The platform's device management now includes a common configuration model across various HPE Aruba Networking products, new hierarchical configuration capabilities, and 90 new APIs. These enhancements are expected to significantly reduce the time required for network deployment across multiple sites.
According to Keven McCammon, Global Head of Digital Infrastructure Services at Henkel Corporation, the latest version of HPE Aruba Networking Central is anticipated to automate processes, reducing deployment windows from weeks to hours.
Mark Leary, research director at IDC, highlights the importance of contextual network observability in today's complex network environments. He suggests that the integration of third-party monitoring can offer comprehensive insights for a more unified network management approach.
The platform's AI model has been enriched with three times more AI trained models over the past six months. These models are trained on a data lake with telemetry from millions of network-managed devices and billions of unique customer endpoints.
HPE Aruba Networking Central, available as a SaaS or part of an HPE GreenLake for Networking subscription, will offer a public preview of these AI Networking capabilities starting October 2024, with third-party monitoring, UXI integration, and select device configuration features to follow before the end of the year.
This expansion is based on a press release statement from HPE.
In other recent news, HP (NYSE:HPQ) Enterprise's strategic decision to acquire Juniper Networks is expected to significantly reshape the company's revenue composition. Citi, maintaining a neutral stance, anticipates the network segment to contribute over 50% of adjusted operating income, up from the current 30%. BofA Securities, upgrading HP Enterprise to a Buy rating, expects the new CFO, Marie Myers, to drive substantial cost reductions, and foresees revenue and cost synergies following the Juniper acquisition.
Evercore ISI maintains an In-Line rating, adjusting its forecast for the accretive value of Juniper to HP Enterprise, now anticipating a ~7% earnings boost in fiscal year 2025. However, the firm does note uncertainties regarding the integration process and potential portfolio consolidation.
Loop Capital Markets, while maintaining a neutral rating, recognizes HP Enterprise's strong quarter-over-quarter momentum in Gen AI server sales and the potential for the Juniper Networks acquisition to address margin concerns.
In terms of financial performance, HP Enterprise reported a 10% year-over-year increase in third-quarter fiscal year 2024 revenue, reaching $7.7 billion, with AI system revenues marking a 40% increase from the previous quarter, totaling $1.3 billion. However, the Hybrid Cloud and Intelligent Edge segments saw year-over-year revenue declines of 7% and 23% respectively.
InvestingPro Insights
Hewlett Packard Enterprise (NYSE: HPE) continues to enhance its HPE Aruba Networking Central platform, leveraging artificial intelligence (AI) to deliver advanced network management solutions. As the company expands its capabilities, it's worth noting that HPE is not only a prominent player in the Technology Hardware, Storage & Peripherals industry but also trades at a low P/E ratio relative to near-term earnings growth, according to InvestingPro Tips. This suggests that the company's stock could be undervalued given its growth prospects.
InvestingPro Data shows a market capitalization of $24.45 billion, indicating a substantial presence in the market. The company boasts a P/E ratio of 13.23, which adjusts to 11.95 when looking at the last twelve months as of Q3 2024, reflecting a company that might be attractively priced relative to its earnings. The data also reveals a revenue of $29.02 billion during the same period, although there was a slight revenue decline of 2.14%. Despite this, the company's gross profit margin stands at a healthy 33.88%.
For investors interested in dividend-paying stocks, HPE has maintained dividend payments for 10 consecutive years, with a current dividend yield of 2.76%. This consistent return to shareholders underscores the company's financial stability and commitment to providing shareholder value.
For those seeking more in-depth analysis, InvestingPro offers additional tips on HPE, which can be accessed at https://www.investing.com/pro/HPE. These tips can provide investors with further insights into the company's financial health and future outlook.
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