Hewlett Packard Enterprise is projecting a strong outlook for the rest of the year — but the CEO says that the overall data center market slowdown is his 'biggest worry'

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Hewlett Packard Enterprise raised its outlook but CEO Antonio Neri said the tech giant was wrestling with market uncertainty and longer sales cycles.

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"The longer the uncertainty goes, the worse it gets," Neri said on the call."We continue to monitor to see what else we can do." HPE got the data center and cloud stuff, and is slugging it out with longtime rivals such as IBM and Microsoft. But it has struggled in the battle for the cloud, where HPE is pushing a hybrid strategy — offering products and services that integrate its own servers and data center hardware with the major cloud computing platforms, including Amazon Web Services and Microsoft Azure. Revenue for that hybrid business slipped last quarter.

"I don't think there's something wrong with the Aruba product set per se, but they are not executing in the US," he told Business Insider."This is clearly a sales issue."Joel Kulina, head of technology trading at Wedbush, said HPE's sluggish revenue underscores the impact of the ongoing shift to the cloud.

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He is recognizing the negative impact that Facebook has had on the market. The ripple effect is palpable.

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The CEO of Hewlett Packard Enterprise explains how its $1.3 billion acquisition of Cray fits into the master plan — and why it could give it a boost with government customersBuying Cray could give Hewlett Packard Enterprise more supercomputing firepower in its cloud strategy, and help it win in government contract bids.
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