HPE to relocate from Silicon Valley to Houston

Vendor reports flat sales but touts growth emerging segments

Hewlett Packard Enterprise (HPE) has revealed plans to move its HQ from Silicon Valley to Houston, partly as a result of the pandemic fallout.

HPE said it is in the process of constructing a "state of the art" campus in Houston, which is where its largest employee base is already situated.

CEO Antonio Neri said: "Early in the pandemic, we recognize there was no going back to what used to be, only preparing for and building what comes next.

"This is one of the reasons we have made the recent decision to relocate HPE's headquarter to Houston.

"We have listened to our team members preferences about the future of work and re-imagine our real estate site to optimise and improve how both physical and virtual offices... are used in this new area.

"Houston has long been HPE's largest US employment hub and we are currently constructing a state-of-the-art new campus."

Neri said that it will retain an "innovation tech hub" in San Jose, California, with Aruba keeping its base there.

HPE said it plans to "consolidate a number of sites in the Bay Area" to its San Jose facility.

It added that no layoffs will be made in relation to the real estate reshuffle.

Neri said the move to Texas will give the vendor "access to diverse talent", while creating "two very strong hubs".

The CEO was speaking as the vendor published its Q4 results.

Revenue was flat year on year at $7.2bn, but the vendor stressed that sales in its "growth businesses" rose significantly.

Intelligent edge sales were up six per cent to $786m, while high performance compute rocketed 25 per cent to $975m.

But revenue in compute, which is the largest segment, fell five per cent to $3.2bn. Storage sales dipped three per cent to $1.2bn.