The CEO of HPE says that its recent MapR acquisition gives it a lot more big data expertise at an unbeatable price: 'We got a very good deal'
Hewlett Packard Enterprise
- Hewlett Packard Enterprise reported earnings on Tuesday, posting profits above Wall Street estimates and raising its full-year fiscal outlook.
- HPE CEO Antonio Neri told Business Insider that buying the assets of startup MapR was a smart move for the tech giant, which he says gave it more big data acumen at a very good price.
- "We got a very good deal since we aid less than one time revenues," he said.
- The acquisition also boosts HPE's big data capabilities at a time the company is looking to expand its data management and processing offerings.
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Hewlett Packard Enterprise posted upbeat results when it reported earnings on Tuesday, and its CEO also used the opportunity to tout the tech giant's recent acqusitions, including its decision to buy the assets of big data startup MapR.
HPE's shares climbed 4% to $13.46 in after-hours trading after the company reported a better-than-expected fiscal third quarter profit and a stronger full-year outlook.
In a conversation with Business Insider, CEO Antonio Neri highlighted the company's decision to buy the assets of floundering startup MapR, in a deal which he said will boosts its big data capabilities. HPE never disclosed the price of that acquisition, but Neri says that it got a good price for the assets of the hot Google-backed data analytics startup which had raised $280 million before floundering.
"We got a very good deal since we paid less than one-time revenues," Neri told Business Insider. HPE acquired MapR's "technology, intellectual property, and domain expertise in artificial intelligence and machine learning and analytics data management."
MapR, which was founded in 2009, emerged as one of the rising stars of the startup world for its data management and processing technology. Its technology was based on Hadoop, which offers the ability to sort through data from diverse sources with exceptional speed.
But analysts say that technology has been outshined by AI and machine learning, which was a factor for MapR's decline.
But Neri said said HPE still sees value in MapR's Hadoop-based technology, which fits into the company's emphasis on data management technologies.
"When I think about the data explosion we see, there are a couple of tools customers are using," he said. "One is AI and machine learning. The other is big data analytics. In big data analytics, Hadoop is still a valid method of extracting value from data."
HPE's bid to expand its AI and big data capabilities was also highlighted by its decision to buy Cray, the supercomputing company, for $3.4 billion. Neri said the deal is set to close later this year.
Neri also shared his thoughts on HPE's most recent quarter. He said the company was still seeing "elongated sales cycles" as some customers remained cautious about making big IT purchases amid the ongoing trade tensions.
"The trade discussions are creating uncertainties in the market," he said.
Still, HPE's report lifted its stock late Tuesday. The company raised its full-year adjusted profit guidance to $1.72 to $1.76 a share. Analysts were expecting a profit of $1.67 a share. HPE also reported a adjusted fiscal third-quarter profit of 45 cents a share, on revenue of $7.2 billion. Analysts were expecting a profit of 40 cents a share, on revenue of $7.26 billion.
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