惠普企業 (HPE) 2016 Q3 法說會逐字稿

Good afternoon, and welcome to the third quarter 2016 Hewlett Packard Enterprise earnings conference call. My name is Aaronson, and I'll be your conference moderator for today.

下午好，歡迎參加 2016 年第三季惠普企業財報電話會議。我叫 Aaronson，今天我將擔任會議主持人。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded for replay purposes. I would now like to turn the presentation over to your host for today's call, Mr. Andrew Simanek, Head of Investor Relations. Please proceed.

提醒一下，本次會議將會被錄音以供重播。現在，我想將演講交給今天電話會議的主持人、投資者關係主管 Andrew Simanek 先生。請繼續。

Good afternoon. I'm Andy Simanek, Head of Investor Relations for Hewlett Packard Enterprise, and I'd like to welcome you to our FY16 third quarter earnings conference call with Meg Whitman, HPE's President and Chief Executive Officer, and Tim Stonesifer, HPE's Executive Vice President and Chief Financial Officer.

午安.我是惠普企業投資者關係主管 Andy Simanek，歡迎您參加我們的 2016 財年第三季財報電話會議，與會人員包括 HPE 總裁兼執行長 Meg Whitman 和 HPE 執行副總裁兼財務長 Tim Stonesifer。

Before handing the call over to Meg, let me remind you that this call is being webcast. A replay of the webcast will be made available shortly after the call for approximately one year. We posted the press releases and the slide presentations accompanying today's earnings release on our HPE Investor Relations web page at investors.HPE.com.

在將電話交給梅格之前，請允許我提醒您，本次通話正在進行網路直播。網路直播的重播將在會議結束後不久提供，為期約一年。我們在 HPE 投資者關係網頁 investors.HPE.com 上發布了今天收益報告的新聞稿和幻燈片演示。

As always, elements of this presentation are forward-looking, and are based on our best view of the world and our businesses as we see them today. For more detailed information, please see the disclaimers on the earnings and transaction materials relating to forward-looking statements that involve risks, uncertainties and assumptions. For a discussion of some of these risks, uncertainties and assumptions, please refer to HPE's SEC reports, including its most recent Form 10-K and Form 10-Q.

與往常一樣，本次演示的內容具有前瞻性，並且基於我們對當今世界和我們業務的最佳看法。欲了解更詳細信息，請參閱收益和交易材料中有關涉及風險、不確定性和假設的前瞻性陳述的免責聲明。有關這些風險、不確定性和假設的討論，請參閱 HPE 的 SEC 報告，包括其最新的 10-K 表格和 10-Q 表格。

HPE had assumes no obligation, and does not intend to update any such forward-looking statements. We also note that the financial information discussed on this call reflects estimates based on information available at this time, and could differ materially from the amounts ultimately reported in HPE's quarterly report on Form 10-Q for the fiscal quarter ended July 31, 2016.

HPE 不承擔任何義務，也不打算更新任何此類前瞻性聲明。我們還注意到，本次電話會議上討論的財務資訊反映了基於​​目前可用資訊的估計，可能與 HPE 2016 年 7 月 31 日結束的財政季度的 10-Q 表季度報告中最終報告的金額存在重大差異。

Finally, for financial information that has been expressed on a non-GAAP basis, we have provided reconciliations to the comparable GAAP information on our website. Throughout this conference call, all revenue growth rates presented, beginning with FY15 are adjusted to exclude the impact of divestitures and currency. We believe this approach helps provide a better representation of HPE's operational performance, given the significant divestitures we've recently completed, including the sale of 51% of our H3C business in China, and TippingPoint amongst several others.

最後，對於以非 GAAP 基礎表達的財務訊息，我們在網站上提供了與可比較 GAAP 資訊的對帳。在整個電話會議中，從 2015 財年開始呈現的所有收入成長率均經過調整，以排除資產剝離和貨幣的影響。我們相信，考慮到我們最近完成的重大資產剝離，包括出售中國 H3C 業務的 51% 以及 TippingPoint 等業務，這種方法有助於更好地反映 HPE 的營運績效。

Please refer to the tables and slide presentation accompanying today's earnings release on our website for details. With that, let me turn it over to Meg.

有關詳細信息，請參閱我們網站上今天收益報告隨附的表格和幻燈片演示。說完這些，讓我把它交給梅格。

Thanks, Andy, and thanks to everyone for joining us on the call today. Let me start by saying, I'm pleased with the progress we made in Q3. Overall, we had a strong quarter.

謝謝，安迪，也謝謝大家今天參加我們的電話會議。首先我要說的是，我對我們在第三季的進展感到滿意。整體而言，本季我們的表現強勁。

While revenue was down slightly on an operational basis, we saw several areas of growth in key parts of our portfolio, including networking, all-flash storage, high performance compute, and technology services. Profitability was very encouraging as we continued to deliver margin improvements in enterprise services, and focus on profitable deals in the enterprise group. Our non-GAAP EPS was $0.49, which even before the impact of a favorable tax rate was at the high end of our previously guided range. Free cash flow also improved to $1 billion through diligent working capital management, and we returned $1.5 billion to shareholders primarily through share repurchases. Tim will provide further color on the quarter, but I would like to take the bulk of my time to discuss today's spin-merge announcement, and put it in the context of the strategy we've been executing against for the past several years.

雖然營運收入略有下降，但我們看到產品組合中幾個關鍵部分的幾個領域都實現了成長，包括網路、全快閃儲存、高效能運算和技術服務。由於我們持續提高企業服務的利潤率，並專注於企業集團的獲利交易，獲利能力非常令人鼓舞。我們的非公認會計準則每股收益為 0.49 美元，即使在優惠稅率的影響之前也處於我們先前指導範圍的高端。透過勤勉的營運資本管理，自由現金流也提高到 10 億美元，我們主要透過股票回購向股東返還了 15 億美元。蒂姆將為本季度提供更多細節，但我想花大部分時間來討論今天的分拆合併公告，並將其放在我們過去幾年一直執行的戰略背景下。

Last November, we launched the new Hewlett Packard Enterprise with the vision to become the industry's leading provider of hybrid IT, with the secure next-generation software defined infrastructure that will run our customer's data centers today, bridge them to multi-cloud environments tomorrow, and enable the emerging intelligent edge that will power campus, branch, and IoT applications for decades to come. We believe this is what our customers are looking for, and what we are best qualified to do. And most importantly, achieving this vision will create a faster growing, higher margin, stronger free cash flow Company for our shareholders.

去年 11 月，我們推出了全新的惠普企業，其願景是成為業界領先的混合 IT 供應商，擁有安全的下一代軟體定義基礎設施，可以運行我們客戶的資料中心，明天將它們連接到多雲環境，並實現新興的智慧優勢，為未來幾十年的園區、分支機構和物聯網應用提供支援。我們相信這正是我們的客戶所尋求的，也是我們最有資格做的事情。最重要的是，實現這一願景將為我們的股東創造一個成長更快、利潤更高、自由現金流更強勁的公司。

To realize our vision, we looked at our portfolio and our product road maps to determine gaps that we needed to fill, and then evaluated how best to do so. Some we fill through increased R&D, like the investment in our recently launched HC 380 Hyper Converged product. In other areas, we pursue innovative partnerships, like the ones recently announced with Docker and Mesosphere. And in some cases, acquisitions make sense like Aruba and SGI.

為了實現我們的願景，我們審視了我們的產品組合和產品路線圖，以確定我們需要填補的空白，然後評估如何最好地做到這一點。我們透過增加研發來填補一些空白，例如對我們最近推出的 HC 380 超融合產品的投資。在其他領域，我們尋求創新的合作夥伴關係，例如最近宣布與 Docker 和 Mesosphere 建立的合作關係。在某些情況下，收購 Aruba 和 SGI 是有意義的。

Next, we identified areas of the business that were not aligned with our go forward strategy. Here we have looked at how to best maximize shareholder value with these assets. We've already made a number of decisions including the sale of TippingPoint, the H3C deal in China, and of course, the spin-merge of our enterprise services business with CSC.

接下來，我們確定了與我們的未來策略不一致的業務領域。這裡我們研究如何利用這些資產來最大限度地實現股東價值。我們已經做出了一系列決定，包括出售TippingPoint、中國H3C交易，當然還有我們的企業服務業務與CSC的分拆合併。

And today, we announced plans for a spinoff and merger of our non-core software assets with Micro Focus. These assets include our application delivery management, big data, enterprise security, information management and governance, and IT operations management businesses. This transaction is valued at about $8.8 billion, including a 50.1% ownership of the new combined Company by HPE shareholders, which is currently valued at $6.3 billion, and a $2.5 billion cash payment to HPE.

今天，我們宣布了將非核心軟體資產分拆並與 Micro Focus 合併的計劃。這些資產包括我們的應用交付管理、大數據、企業安全、資訊管理和治理以及IT營運管理業務。此次交易價值約為 88 億美元，其中包括 HPE 股東對合併後新公司的 50.1% 所有權（目前價值 63 億美元），以及向 HPE 支付 25 億美元現金。

The combined company will be lead by Kevin Loosemore, current Micro Focus Executive Chairman, and Mike Phillips will serve as Chief Financial Officer. After the transaction closes, Micro Focus' Board of Directors will include an HPE senior executive and HPE independent directors on the Board. The new combined company is expected to have annual revenues of approximately $4.5 billion, with strong recurring revenue streams. The company will be well-diversified across product lines and geographies. It will also have a stronger go-to-market capability with nearly 4,000 salespeople worldwide, and deep R&D resources to deliver best-in-class solutions to customers and partners.

合併後的公司將由現任 Micro Focus 執行董事長 Kevin Loosemore 領導，Mike Phillips 將擔任財務長。交易完成後，Micro Focus 董事會將包括一名 HPE 高階主管和 HPE 獨立董事。合併後的新公司預計年收入約 45 億美元，並擁有強勁的經常性收入來源。該公司將實現產品線和地域的多元化。它還將擁有更強大的市場進入能力，在全球擁有近 4,000 名銷售人員和深厚的研發資源，為客戶和合作夥伴提供一流的解決方案。

Micro Focus' approach to managing both growing and mature software assets will ensure higher levels of investment in growth areas, like big data analytics and security, while maintaining a stable platform for mission-critical software products that customers rely on. For employees, Micro Focus' approach will mean each product line will have a clear and important role in the overall company performance, and employees will have a high level of clarity on the strategy for their organization.

Micro Focus 管理成長型和成熟型軟體資產的方法將確保在諸如大數據分析和安全等成長領域進行更高水準的投資，同時為客戶所依賴的關鍵任務軟體產品維護一個穩定的平台。對員工而言，Micro Focus 的方法意味著每條產品線都將在整個公司績效中發揮明確而重要的作用，並且員工將對其組織的策略有高度的清晰度。

It also means employees will get to work on long-term customer-focused projects, and the software technology that they love. We believe the software assets that will be a part of the spin-merge will bring better value to our customers, employees and shareholders part of a more focused software company committed to growing these businesses on a standalone basis.

這也意味著員工將致力於長期以客戶為中心的專案以及他們熱愛的軟體技術。我們相信，作為分拆合併的一部分，軟體資產將為我們的客戶、員工和股東帶來更好的價值，成為一家更專注的軟體公司的一部分，致力於獨立發展這些業務。

With this announcement, Robert Youngjohns, the current head of our software business will assume the role of Executive Vice President Strategic Business Development reporting to me. In this new role, Robert will partner with other members of the leadership team to drive strategic customer and partner initiatives, focused on growing key parts of the business. With Robert taking on this new role, Chris Hsu, our Chief Operating Officer will lead the software business effective immediately, in addition to his current responsibilities. Chris' track record of driving strong performance and understanding market dynamics at HPE and throughout his career, make him a great fit for this role.

隨著這項宣布，我們軟體業務的現任主管羅伯特·揚約翰斯 (Robert Youngjohns) 將擔任策略業務發展執行副總裁，並向我匯報。在這個新職位上，羅伯特將與領導團隊的其他成員合作，推動策略客戶和合作夥伴計劃，專注於發展業務的關鍵部分。隨著羅伯特 (Robert) 出任這一新職位，我們的首席營運長 Chris Hsu 除了現有職責外，還將立即領導軟體業務。 Chris 在 HPE 及其整個職業生涯中都擁有出色的業績表現和對市場動態的了解，這些經歷使他非常適合擔任這一職位。

To be clear, both software and services are still key enablers of HPE's go forward strategy. Our newly-created software-defined and cloud business will build upon key software assets like OneView and the Helion cloud platform to deliver software-defined hybrid IT solutions like Synergy, HPE's composable infrastructure offering that enables customers to operate their workloads with unprecedented speed and agility.

需要明確的是，軟體和服務仍然是 HPE 前進策略的關鍵推動因素。我們新創建的軟體定義和雲端業務將以 OneView 和 Helion 雲端平台等關鍵軟體資產為基礎，提供軟體定義的混合 IT 解決方案，例如 Synergy、HPE 的可組合基礎設施產品，使客戶能夠以前所未有的速度和靈活性運行其工作負載。

And in services, we continue to have a world-class capability in our technology services group, which will represent about 25% of HPE's revenue following the two spins that we've announced. ES' 22,000 service professionals build solutions from the ground up, with the consulting and support our customers need to transform their environments, and take advantage of opportunities in emerging areas like campus, branch, and IoT. Once the ES CSC and the software Micro Focus transactions are complete, HPE will be an even stronger Company well-positioned for the future.

在服務方面，我們的技術服務集團繼續擁有世界一流的能力，在我們宣布的兩次分拆之後，該集團的收入將佔 HPE 收入的 25% 左右。 ES 的 22,000 名服務專業人員從頭開始建立解決方案，為客戶提供轉變環境所需的諮詢和支持，並利用校園、分支機構和物聯網等新興領域的機會。一旦 ES CSC 和軟體 Micro Focus 交易完成，HPE 將成為一家更強大的公司，為未來做好準備。

With approximately $28 billion in annual revenue, the future HPE will have significant scale, a diversified world-class portfolio, and a global footprint to meet the evolving needs of our customers and partners. We will be a market leader both in the data center and on the edge with our world-class portfolio of software defined servers, storage, networking and converged infrastructure. We will also have strong recurring revenue streams that account for approximately 60% of our operating profit, and will have an improved free cash flow profile.

未來的 HPE 將擁有約 280 億美元的年收入，龐大的規模、多樣化的世界級產品組合和全球影響力，以滿足客戶和合作夥伴不斷變化的需求。憑藉我們世界一流的軟體定義伺服器、儲存、網路和融合基礎設施產品組合，我們將成為資料中心和邊緣市場的領導者。我們還將擁有強勁的經常性收入流，約占我們營業利潤的 60%，且自由現金流狀況也將得到改善。

Given our experience with divestitures, we are confident in our ability to execute. And more importantly, that we are making the right choices to set both HPE and our customers up for the long-term, while delivering maximum shareholder value. The market is already recognizing what we are doing. With these strategic moves and our continued strong operational performance, HPE's market cap has increased by over $10 billion or 40% since the separation from HPI on November 1, 2015.

鑑於我們在資產剝離方面的經驗，我們對執行能力充滿信心。更重要的是，我們正在做出正確的選擇，為 HPE 和我們的客戶提供長期支持，同時實現股東價值最大化。市場已經認可了我們所做的事情。憑藉這些策略舉措和持續強勁的營運業績，自 2015 年 11 月 1 日與 HPI 分離以來，HPE 的市值已增長了 100 多億美元，增幅達 40%。

In addition to the portfolio changes, we also made important leadership and organizational changes this quarter that will make our business stronger and more efficient. For example, we've started the process of right-sizing our corporate functions for the more focused standalone HPE. In addition, the enterprise group businesses have been simplified and streamlined to better address market opportunities, improve cost structure, accelerate innovation, and strengthen our competitiveness. Furthermore, all business unit and corporate marketing efforts will be consolidated under our global marketing function, and all sales will be under a single global leader. Finally, we announced that Hewlett Packard Labs would move into the enterprise group, which will better align our research and go-to-market efforts.

除了投資組合變化之外，本季我們還進行了重要的領導和組織變革，這將使我們的業務更加強大、更有效率。例如，我們已經開始調整公司職能，以實現更專注的獨立 HPE。此外，企業集團業務也得到了簡化和精簡，以更好地抓住市場機遇，改善成本結構，加快創新，增強競爭力。此外，所有業務部門和企業行銷工作都將整合到我們的全球行銷職能中，所有銷售工作都將由一位全球領導者負責。最後，我們宣布惠普實驗室將併入企業集團，這將更好地協調我們的研究和市場推廣工作。

While there's more work to do, we are already seeing that our strategy is working. As a more focused organization, we've been better able to allocate resources more effectively, and introduce truly best-in-class solutions. For example, as I mentioned earlier, we announced plans to acquire SGI. High performance compute and big data analytics are exciting areas for us, as customers are increasingly looking for ways to gain deeper, more contextual insights from the ever-expanding volumes of data.

雖然還有很多工作要做，但我們已經看到我們的策略正在發揮作用。作為一個更專注的組織，我們能夠更有效地分配資源，並推出真正一流的解決方案。例如，正如我之前提到的，我們宣布了收購 SGI 的計劃。高效能運算和大數據分析對我們來說是令人興奮的領域，因為客戶越來越多地尋求從不斷擴大的資料量中獲得更深入、更具背景洞察力的方法。

Industries like financial services, semiconductors and energy are all increasing their HPC in investments. In Q3, we won several significant automotive deals, where high performance compute is used for electronic prototype designs, improving fuel economy, and improving crash worthiness. The SGI acquisition will further strengthen our position in the $11 billion HPC segment, as well as high growth data analytics segment.

金融服務、半導體和能源等產業都在增加對 HPC 的投資。在第三季度，我們贏得了幾項重要的汽車交易，其中高效能運算用於電子原型設計、提高燃油經濟性和提高耐撞性。收購 SGI 將進一步加強我們在價值 110 億美元的 HPC 領域以及高成長數據分析領域的地位。

In storage, we extended our leadership in the all-flash data center with enhancements to HPE 3PAR, and also introduced next generation software defined storage to enable a composable data fabric. We also brought enterprise capabilities to the entry storage market, with the introduction of StoreVirtual 3200 and MSA 2040. We announced HPE OneView 3.0 to provide software defined intelligence across HPE's family of infrastructure solutions. To date, we've sold over 500,000 HPE OneView licenses across a variety of key verticals, such as healthcare and industrial and financial services, and we have a growing partner ecosystem including Docker, Chef, Turbonomic and [SolidStack].

在儲存方面，我們透過增強 HPE 3PAR 擴展了我們在全快閃資料中心的領導地位，同時也推出了下一代軟體定義存儲，以實現可組合資料結構。我們也推出了 StoreVirtual 3200 和 MSA 2040，將企業功能帶入入門級儲存市場。我們宣布推出 HPE OneView 3.0，為 HPE 的一系列基礎設施解決方案提供軟體定義的智慧。迄今為止，我們已經在醫療保健、工業和金融服務等多個關鍵垂直領域銷售了超過 500,000 個 HPE OneView 許可證，並且我們擁有不斷壯大的合作夥伴生態系統，包括 Docker、Chef、Turbonomic 和 [SolidStack]。

We unveiled the industry's first converged systems for the Internet-of-Things, the HPE Edgeline 1000 and 4000 which will enable real-time decision-making and deliver heavy duty analytics at the edge, by integrating data capture, control, compute and storage. We also announced updates to the HPE Helion cloud portfolio, including HPE Helion cloud suite, a new software suite enabling customers to manage their full spectrum of applications across infrastructure environments. And HPE Helion CloudSystem 10, a hardware and software solution to build and deploy an enterprise-grade private cloud environment.

我們推出了業界首個物聯網融合系統 HPE Edgeline 1000 和 4000，透過整合資料擷取、控制、運算和存儲，它們將實現即時決策並在邊緣提供重型分析。我們也宣布了 HPE Helion 雲端產品組合的更新，包括 HPE Helion 雲端套件，這是一款新的軟體套件，使客戶能夠跨基礎設施環境管理其全方位的應用程式。 HPE Helion CloudSystem 10 是一款用於建置和部署企業級私有雲環境的硬體和軟體解決方案。

But most of all, we are winning with our customers and partners. Aruba continues to win customers, and drive growth with its industry-leading technology. For example, we helped Rio's airport handle the massive surge of travelers passing through for the Olympics this summer. And Home Depot and Best Buy are currently implementing Aruba wireless solutions to provide a better in store experience for customers and employees. Keep in mind, deals like this have great TS pull through as well.

但最重要的是，我們與客戶和合作夥伴共同取得了勝利。 Aruba 憑藉其領先業界的技術不斷贏得客戶並推動成長。例如，我們幫助裡約機場應對今年夏天因參加奧運而激增的旅客。家得寶 (Home Depot) 和百思買 (Best Buy) 目前正在實施 Aruba 無線解決方案，為顧客和員工提供更好的店內體驗。請記住，這類交易對 TS 也有很大幫助。

At Discover in June we announced a new partnership with GE Digital that will enable industrial analytics from the edge to the cloud. HPE will be a preferred storage and server infrastructure provider for GE's Predix cloud technologies, and the Predix platform will be a preferred software solution for HPE's industrial-related use cases and opportunities. HPE was also instrumental in helping DropBox transform to a hybrid infrastructure to help it meet the growing demands of its users. DropBox moved the majority of its cloud storage business away from AWS to an on-premise data center using HPE ProLiant and Cloudline servers, all financed by HP Financial Services.

在六月的 Discover 大會上，我們宣布與 GE Digital 建立新的合作夥伴關係，實現從邊緣到雲端的產業分析。 HPE 將成為 GE Predix 雲端技術的首選儲存和伺服器基礎設施供應商，而 Predix 平台將成為 HPE 工業相關用例和機會的首選軟體解決方案。 HPE 也幫助 DropBox 轉型為混合基礎設施，以滿足用戶日益增長的需求。 DropBox 將其大部分雲端儲存業務從 AWS 轉移到使用 HPE ProLiant 和 Cloudline 伺服器的內部資料中心，所有資金均由 HP Financial Services 提供。

We also announced a groundbreaking strategic alliance with Docker to help customers transform and modernize their data centers, to benefit from a more agile development environment. At the heart of this alliance is HPE's Docker-ready server program, unique to the server industry which ensures HPE servers are bundled with the Docker Engine and support. And today, we announced plans for a commercial partnership with Micro Focus that will name SUSE as HPE's preferred Linux partner, and will bring together HPE's Helion OpenStack and Stackato solutions with SUSE's OpenStack expertise to provide best-in-class enterprise-grade hybrid cloud offerings for HPE customers.

我們也宣布與 Docker 建立突破性的策略聯盟，幫助客戶改造和現代化他們的資料中心，從而從更敏捷的開發環境中受益。該聯盟的核心是 HPE 的 Docker-ready 伺服器計劃，該計劃在伺服器行業中獨一無二，可確保 HPE 伺服器與 Docker 引擎和支援捆綁在一起。今天，我們宣布了與 Micro Focus 建立商業合作夥伴關係的計劃，將 SUSE 指定為 HPE 的首選 Linux 合作夥伴，並將 HPE 的 Helion OpenStack 和 Stackato 解決方案與 SUSE 的 OpenStack 專業知識結合起來，為 HPE 客戶提供一流的企業級混合雲產品。

So in summary, I'm pleased with the progress we've made this quarter, and I am just as pleased with the execution of our strategy since we separated from HPI. I'm also excited about the opportunities we've created for shareholders in the spin mergers of ES and CSC, and our software assets with Micro Focus. We are setting up HPE for long-term success, while unlocking the kind of value we believe our shareholders appreciate. On that note, I will hand the call over to Tim.

總而言之，我對本季的進展感到滿意，並且對我們脫離 HPI 以來戰略的執行也同樣感到滿意。我也對我們在 ES 和 CSC 的分拆合併中為股東創造的機會以及與 Micro Focus 的軟體資產感到興奮。我們正在為 HPE 的長期成功做好準備，同時釋放我們認為股東會欣賞的價值。關於這一點，我將把電話交給蒂姆。

Thanks, Meg. Overall, we performed well in the quarter. While revenue of $12.2 billion, down less than 1% was not quite as strong as last quarter, margins were up as we focused on profitable market share. We also executed well, considering we faced difficult compares across the portfolio, and an uneven global demand environment.

謝謝，梅格。總體而言，本季我們表現良好。雖然營收為 122 億美元，下降不到 1%，不如上一季那麼強勁，但由於我們專注於獲利市場份額，利潤率有所上升。考慮到我們面臨整個投資組合的困難比較以及不均衡的全球需求環境，我們的表現也很好。

As we indicated last quarter, compares became more challenging as we're no longer benefiting from the large Deutsche Bank deal we signed in ES last year. And in EG, we are lapping the compares from Aruba and the ramp of Cloudline servers. From a macro perspective, we did see weakness in Europe, particularly in ES from a slowing in the UK public sector business, and also in Japan in the enterprise group. The Q3 currency impact of revenue was a head wind of 210 basis points year-over-year that we expect to moderate further.

正如我們上個季度所指出的，比較變得更具挑戰性，因為我們不再受益於去年在 ES 簽署的德意志銀行大額交易。例如，我們正在對 Aruba 和 Cloudline 伺服器的比較進行總結。從宏觀角度來看，我們確實看到了歐洲的疲軟，特別是由於英國公共部門業務放緩導致的歐洲經濟區，以及日本的企業集團的疲軟。第三季營收的貨幣影響年減了 210 個基點，我們預期這一影響將進一步緩和。

We did have several areas of solid growth across the portfolio including networking up 12%, all-flash arrays up 70%, high performance compute up 12%, and our highest margin business, technology services, returned to growth for the first time since the second quarter of 2012. To improve growth in the overall portfolio, we are continuing to make investments in our higher growth businesses around software defined, converged and hyper converged, while we continue to enhance our go-to-market efforts that we expect will improve growth going forward. Overall, we are still on track to deliver what we said we would do at the beginning of the year, by growing total FY16 revenue adjusted for divestitures and currency.

我們的投資組合中確實有幾個領域實現了穩健的成長，包括網路成長 12%、全快閃陣列成長 70%、高效能運算成長 12%，而我們利潤率最高的業務——技術服務，自 2012 年第二季以來首次恢復成長。為了提高整體投資組合的成長，我們將繼續在軟體定義、整合和超融合等領域的高成長業務上進行投資，同時我們將繼續加強市場推廣力度，預計這將改善未來的成長。總體而言，我們仍在按計劃實現年初所承諾的目標，即在調整資產剝離和匯率因素後實現 2016 財年總收入的增長。

Gross margin of 29.3% was up 60 basis points, both year-over-year and sequentially. This was principally due to continued improvements in enterprise services, and enterprise group to a lesser extent. Non-GAAP operating profit of 8.8% was up 30 basis points year-over-year, and 90 basis points sequentially. Non-GAAP diluted net earnings per share of $0.49 was above our outlook of $0.42 to $0.46, that was primarily the result of tax benefits realized through the recent divestitures, equating to approximately $0.04 per share.

毛利率為 29.3%，年比和季比均上漲 60 個基點。這主要是由於企業服務的持續改善，以及企業集團的改善（較小程度）。非公認會計準則營業利潤為 8.8%，較去年同期成長 30 個基點，較上季成長 90 個基點。非公認會計準則稀釋每股淨收益為 0.49 美元，高於我們預期的 0.42 美元至 0.46 美元，這主要是透過最近的資產剝離實現的稅收優惠的結果，相當於每股約 0.04 美元。

Non-GAAP EPS primarily excludes pre-tax amounts for the gain on divestiture of H3C of $2.2 billion, restructuring charges of $369 million, amortization of intangible assets of $210 million, and separation charges of $135 million. We delivered GAAP diluted net earnings per share of $1.32, above our previously provided outlook range of $1.10 to $1.14, primarily due to a higher than expected gain on the H3C divestiture, lower separation costs and the previously mentioned tax benefit.

非公認會計準則每股收益主要不包括剝離 H3C 的 22 億美元收益、3.69 億美元的重組費用、2.1 億美元的無形資產攤銷以及 1.35 億美元的分離費用等稅前金額。我們實現的 GAAP 稀釋每股淨收益為 1.32 美元，高於我們先前提供的 1.10 美元至 1.14 美元的預期範圍，主要原因是 H3C 資產剝離的收益高於預期、分離成本較低以及先前提到的稅收優惠。

Now turning to the results by business. In enterprise group, revenue was flat as we focused on profitability and delivered encouraging improvements in operating margins, which while flat year-over-year were up 90 basis points sequentially to 12.6%. The sequential improvement was primarily due to lower discounting, better server option attach, favorable mix, and operational cost improvements as we right-size the organization ahead of the separation from enterprise services and software.

現在來談談業務結果。在企業集團，由於我們專注於獲利能力，收入持平，營業利潤率也取得了令人鼓舞的改善，與去年同期持平，但環比增長 90 個基點，達到 12.6%。連續的改善主要歸因於更低的折扣、更好的伺服器選項附加、有利的組合以及營運成本的改善，因為我們在與企業服務和軟體分離之前對組織進行了適當的規模調整。

Server revenue declined 2% as solid growth in Tier 1 and high performance compute was offset by pressures in core servers. Within the core, we did have some market coverage issues that we are addressing through recent sales leadership and go-to-market changes, with an emphasis on SMB. We also doubled down on the fast-growing high performance compute market with the acquisition of SGI, and continue to invest in workload optimized solutions like SAP HANA.

由於一級市場和高效能運算的穩健成長被核心伺服器的壓力所抵消，伺服器收入下降了 2%。在核心領域，我們確實存在一些市場覆蓋問題，我們正在透過最近的銷售領導和市場進入變化來解決這些問題，重點是中小企業。我們也透過收購 SGI 加倍投入快速成長的高效能運算市場，並持續投資 SAP HANA 等工作負載優化解決方案。

From a margin standpoint, the team did a nice job prioritizing profitability over share for share's sake, expanding margins year-over-year. We also anticipate we held server share in the second calendar quarter overall, and gained share in the Americas, density optimized and Tier 1.

從利潤率的角度來看，該團隊做得很好，優先考慮盈利能力而不是份額，從而實現了利潤率的逐年擴大。我們也預計，我們將在整個第二季度佔據伺服器份額，並在美洲、密度優化和一級市場中獲得份額。

Storage revenue declined 5%, with continued declines in the legacy portfolio more than offsetting growth in converged storage of 1% that was impacted by softer than expected market. Margins increased year-over-year driven by favorable converged mix and improved pricing in all-flash. 3PAR plus XP plus EVA was up 5%, and all-flash 3PAR revenue continues to drive the portfolio, growing 70% at record revenue levels. Despite a challenging market, we estimate we gained share in the second calendar quarter, our 11th consecutive quarter of share gains, and we continue to expect storage to gain share through the remainder of the year.

儲存收入下降了 5%，傳統產品組合的持續下滑抵消了融合儲存 1% 的成長，而融合儲存的成長受到市場疲軟的影響。受有利的融合組合和全快閃定價改善的推動，利潤率同比增長。 3PAR 加 XP 加 EVA 成長了 5%，全快閃 3PAR 營收持續推動產品組合成長，成長 70%，創下歷史新高。儘管市場充滿挑戰，我們估計我們在第二季度的份額有所增加，這是我們連續第 11 個季度實現份額增長，並且我們預計存儲業務的份額將在今年剩餘時間內繼續增長。

Networking revenue grew 12%, and encouragingly, Aruba growth has accelerated, growing 20% and is exceeding our internal plan. We again, saw growth across all regions, as we continued to see the benefits of the combined Aruba HPE portfolio. Margins improved year-over-year, driven by both a better mix and higher margin rates of Aruba.

網路收入成長了 12%，令人鼓舞的是，Aruba 的成長速度加快，成長了 20%，超越了我們的內部計畫。我們再次看到所有地區都實現了成長，同時我們繼續看到了 Aruba HPE 合併產品組合帶來的好處。利潤率較去年同期有所提高，這得益於 Aruba 更好的產品組合和更高的利潤率。

TS returned to growth for the first time since the second quarter of 2012. Revenue was up 1%, as the strong order growth from FY15 becomes a larger portion of the portfolio, and revenue grew in both support and consulting. And while orders were flat, we saw encouraging performance in non-attach and proactive services that are growing at double-digit rates, and becoming a larger mix of the total portfolio. We continue to improve service intensity, our attach dollars per unit, which is helping to offset increased Tier 1 mix and higher server ASPs.

TS 自 2012 年第二季以來首次恢復成長。由於 2015 財年強勁的訂單成長成為產品組合中更大的組成部分，並且支援和諮詢業務的收入均有所增長，因此收入增長了 1%。雖然訂單持平，但我們看到非附加服務和主動服務的表現令人鼓舞，這些服務正以兩位數的速度增長，並成為整個產品組合中更大的組成部分。我們繼續提高服務強度，即每單位附加美元，這有助於抵消增加的一級組合和更高的伺服器平均售價。

Enterprise services revenue declined 3%, as growth in the Americas and APJ was more than offset by weakness in EMEA, resulting from a pause in UK public sector spending, and a tough compare with the Deutsche Bank deal in the prior year. Operating profit improved 260 basis points year-over-year to 8.3%, the highest since the second quarter of 2011, as the team continues to execute on productivity improvements and delivery and sales. We also benefited from improving location mix and new deal profitability.

企業服務收入下降 3%，因為美洲和 APJ 地區的成長被 EMEA 地區的疲軟所抵消，而 EMEA 地區的疲軟是由於英國公共部門支出暫停，並且與去年德意志銀行的交易相比較為艱難。由於團隊持續致力於生產力改善以及交付和銷售，營業利潤年增 260 個基點至 8.3%，為 2011 年第二季以來的最高水準。我們也受益於改善位置組合和新交易盈利能力。

Progress made on cost improvements, sales strength, and normal quarterly seasonality provides us with continued confidence that operating margins for the full year will be approximately 7%, at the high end of our original outlook. Revenue is still expected to be down 2% to flat in constant currency, even with the Mphasis divestiture. We continue to track against our longer term goal of 60% headcount in low cost locations, and completed the quarter with 49% of our headcount in low cost centers, a 6 point improvement since the beginning of the fiscal year.

成本改進、銷售強勁和正常的季度季節性所取得的進展使我們繼續有信心，全年營業利潤率將達到約 7%，達到我們最初預期的高端。即使剝離了 Mphasis 的業務，預計收入仍將下降 2% 至持平（以固定匯率計算）。我們繼續朝著 60% 的員工在低成本地區的長期目標邁進，本季結束時，49% 的員工在低成本中心，比本財年年初提高了 6 個百分點。

Software revenue declined 3%, as strength in security and big data was offset by declines in IT management. SaaS had a record quarter with 17% revenue growth. The team continues to focus on disciplined cost controls, decreasing OpEx 16% year-over-year. However, revenue declines ultimately outpaced operating improvements, causing a 270 basis point decline in operating margins to 17.8%.

軟體收入下降 3%，因為安全和大數據的優勢被 IT 管理的下滑所抵消。 SaaS 本季營收成長 17%，創歷史新高。該團隊繼續專注於嚴格的成本控制，營運支出較去年同期下降 16%。然而，收入下降最終超過了營運改善的速度，導致營運利潤率下降 270 個基點至 17.8%。

HPE financial services revenue grew 2%, and delivered the first quarter of as reported revenue growth since the first quarter of 2013. Operating profit declined 90 basis points year-over-year to 9.9%, as lower residual sales from weaker volume in prior years pressured margin rates. Financing volume declined 4% year-over-year in constant currency on a tough compare, that saw Deutsche Bank sale leaseback volume in the third quarter of 2015. Return on equity was down 190 basis points year-over-year to 13.3%, and was similarly pressured by lower residual sales resulting from lower volumes in FY13 and FY14.

HPE金融服務收入成長2%，自2013年第一季以來首次實現報告收入成長。由於前幾年銷售疲軟導致剩餘銷售額下降，對利潤率造成壓力，營業利潤年減90個基點至9.9%。與德意志銀行 2015 年第三季的售後回租量相比，以固定匯率計算，融資量年減 4%。股本回報率年減 190 個基點至 13.3%，同樣受到 2013 財年和 2014 財年交易量下降導致剩餘銷售額下降的壓力。

Cash flow generation was strong in the quarter, as we continue to optimize working capital management. Cash flow from operations was $1.7 billion, up 10% year-over-year on an adjusted basis. Free cash flow was $971 million, up 15% year-over-year on an adjusted basis.

由於我們持續優化營運資本管理，本季現金流產生強勁。營運現金流為 17 億美元，經調整後較去年同期成長 10%。自由現金流為 9.71 億美元，經調整後較去年同期成長 15%。

When adjusted for the sale of Mphasis, the cash conversion cycle was 19 days, down 5 days sequentially. Receivables were the largest contributor to working capital improvement, due to favorable payment term mix, and reductions to aged receivables. Going forward, we expect the cash conversion cycle to be in mid teens, with FY16 free cash flow of $1.7 billion to $1.9 billion.

經調整 Mphasis 的出售後，現金轉換週期為 19 天，比上一季減少 5 天。由於有利的付款期限組合和帳齡應收帳款的減少，應收帳款是營運資本改善的最大貢獻者。展望未來，我們預期現金轉換週期將達到十幾歲左右，2016 財年的自由現金流將達到 17 億至 19 億美元。

Turning to capital allocation. During the quarter, we repurchased $1.5 billion of stock through an accelerated share repurchase program, and we paid $91 million as part of our normal dividend. Year-to-date, we have returned $2.9 billion of capital to shareholders, primarily through $2.7 billion of share repurchases. With our free cash flow generation and the recent divestitures, we are on pace to return more than $3 billion of cash to shareholders in the year, which as a reminder is approximately 3 times our original commitment at the start of the year.

轉向資本配置。本季度，我們透過加速股票回購計畫回購了價值 15 億美元的股票，並支付了 9,100 萬美元作為正常股息的一部分。年初至今，我們已向股東返還了 29 億美元的資本，主要透過 27 億美元的股票回購。透過我們的自由現金流產生和最近的資產剝離，我們預計今年向股東返還超過 30 億美元的現金，這大約是我們年初最初承諾的 3 倍。

Finally, I would like to discuss the financial impacts of the HPE software Micro Focus transaction. As Meg mentioned, the transaction is expected to deliver approximately $8.8 billion of enterprise value to HPE. This includes 50.1% of the equity in the newly-formed Company that will go to HPE shareholders, valued at approximately $6.3 billion based on Micro Focus' current stock price, and receipt of a $2.5 billion payment of onshore cash to HPE.

最後，我想討論一下 HPE 軟體 Micro Focus 交易的財務影響。正如梅格所提到的，此次交易預計將為 HPE 帶來約 88 億美元的企業價值。其中包括新成立公司的 50.1% 股權，這些股權將歸 HPE 股東所有，根據 Micro Focus 目前的股價計算，價值約為 63 億美元，此外 HPE 還將收到 25 億美元的境內現金支付。

HPE and Micro Focus also expect to improve the margins on HPE's software assets by approximately 20 points by the end of the third year, following the deal close, while investing in key growth areas like big data and security. As owners of 50.1% of the equity in the new merged Company, HPE shareholders will share in the value of these operational improvements, as well as future growth of earnings. We expect this transaction to close by the end of the second half of HPE's FY17.

HPE 和 Micro Focus 也預計，在交易完成後的第三年年底，HPE 軟體資產的利潤率將提高約 20 個百分點，同時投資大數據和安全等關鍵成長領域。作為新合併公司 50.1% 股權的所有者，HPE 股東將分享這些營運改進的價值以及未來的收益成長。我們預計此次交易將在 HPE 2017 財年下半年末完成。

To recognize this $8.8 billion of enterprise value, and unlock a more attractive financial profile for HPE going forward, we will incur one-time separation cash payments of approximately $700 million, with the vast majority occurring in FY17.

為了實現這 88 億美元的企業價值，並為 HPE 未來打造更具吸引力的財務狀況，我們將支付約 7 億美元的一次性分離現金，其中絕大部分將在 2017 財年支付。

Following the separation from ES and software, Hewlett Packard Enterprise will be a faster growing, higher margin, stronger cash flow Company for our shareholders. Just looking at FY16, revenue growth would be about 3 points greater. Operating margins would be about 1 point higher at just over 10%, and free cash flow as a percentage of revenue would be roughly 50% higher. It's also worth noting, that we have roughly 30% of revenue recurring, but most importantly, more than [60]% of profitability will be recurring that comes from TS and financial services.

從 ES 和軟體業務分離之後，惠普企業對我們的股東來說將是一家成長更快、利潤更高、現金流更強勁的公司。只看 2016 財年，營收成長率將提高約 3 個百分點。營業利潤率將提高約 1 個百分點，達到 10% 以上，自由現金流佔收入的百分比將提高約 50%。另外值得注意的是，我們有大約 30% 的收入是經常性的，但最重要的是，超過 [60]% 的利潤將是經常性的，來自 TS 和金融服務。

HPE will also have a very healthy balance sheet that currently sits at $5.3 billion in operating net cash. On top of that, we just closed the Mphasis deal, receiving approximately $825 million of before tax cash proceeds.

HPE 還將擁有非常健康的資產負債表，目前營運淨現金為 53 億美元。除此之外，我們剛剛完成了 Mphasis 交易，獲得了約 8.25 億美元的稅前現金收益。

We continue to see share repurchase as an excellent use of capital, and similar to the H3C transaction, plan to buyback shares with a vast majority of the Mphasis proceeds. In FY17, our net cash position will also be further enhanced by over $1 billion from the cash and debt transfers with CSC, and the $2.5 billion cash dividend from Micro Focus. We will continue to deliver shareholder value with these proceeds, just as we've done this year by following our returns based capital allocation approach.

我們仍然認為股票回購是一種極好的資本利用方式，與 H3C 交易類似，計劃用 Mphasis 的大部分收益回購股票。在 2017 財年，我們的淨現金狀況也將進一步增強，從與 CSC 的現金和債務轉移中將獲得超過 10 億美元的收入，從 Micro Focus 獲得 25 億美元的現金股息。我們將繼續利用這些收益為股東創造價值，就像我們今年遵循基於回報的資本配置方法一樣。

This approach is currently biased towards share repurchases, and we will provide more details on our FY17 capital return plans to shareholders at our upcoming Analyst Day. With all that in mind, we expect to finish FY16 with non-GAAP diluted net earnings per share of $1.90 to $1.95, at the high end of our original outlook for the year. We expect GAAP diluted net earnings per share to be $2.09 to $2.14.

這種方法目前偏向股票回購，我們將在即將舉行的分析師日上向股東提供有關 2017 財年資本回報計畫的更多詳細資訊。綜合考慮上述因素，我們預計 2016 財年非 GAAP 稀釋每股淨收益將達到 1.90 美元至 1.95 美元，達到我們最初對今年的預期的高位。我們預計每股 GAAP 稀釋淨收益為 2.09 美元至 2.14 美元。

Before we open it up to questions, a quick reminder that we are holding our annual Securities Analyst meeting on October 18 in San Francisco, where we will provide additional P&L and cash flow details on the Company as it stands today, as well the go forward Hewlett Packard Enterprise excluding ES and software. Now let's open it up for questions.

在我們開始提問之前，請快速提醒一下，我們將於 10 月 18 日在舊金山舉行年度證券分析師會議，屆時我們將提供有關公司當前狀況的更多損益表和現金流詳細信息，以及不包括 ES 和軟體的惠普企業的未來發展。現在讓我們開始提問。

(Operator Instructions)

（操作員指示）

Our first question comes from Katy Huberty of Morgan Stanley.

我們的第一個問題來自摩根士丹利的凱蒂·休伯蒂。

Thanks, good afternoon. The slowdown in storage was a bit of a surprise, given that most other players in the space beat expectations. So just to begin, wonder if you could talk about what you think drove that? Was it macro or execution? And I have a follow-up?

謝謝，下午好。考慮到該領域大多數其他參與者的表現都超出預期，儲存業務成長放緩有點令人意外。那麼首先，您能否談談您認為是什麼導致了這一現象？它是巨集還是執行？我還有後續嗎？

Yes, hi, Katy, this is Meg. So the storage performance was not as strong in Q3 as we saw last quarter, I think because there was a weaker margin -- I mean, a weaker market. But we also increased margins, and we expect to take about 0.5 point of share year-over-year in the second quarter. I want to remind you, this is the 11th straight quarter in a row that we've taken market share. And revenue was down 5% year-over-year adjusted for divestitures and the currency, as traditional declined 12% more than offsetting the 1% growth in converged.

是的，你好，凱蒂，我是梅格。因此，第三季的儲存效能不如上一季強勁，我認為這是因為利潤率較低——我的意思是市場較弱。但我們也提高了利潤率，預計第二季的市佔率將比去年同期成長約 0.5 個百分點。我想提醒大家，這是我們連續第 11 季佔據市場份額。經資產剝離和貨幣調整後，營收年減 5%，其中傳統業務下降 ​​12%，抵銷了融合業務 1% 的成長。

So listen, we were -- we saw a softer market, but we've introduced our new StoreVirtual 3200, the MSA 2040 that brings the enterprise capabilities at a fantastic price to the entry market. And that has been a drag for us. We haven't had a great competitive offering in the entry market. And what you know about the storage market, it's moving from high end to entry, very, very fast. So looking forward, I mean, listen, we think the market's going to continue to be soft, but and that will keep overall market, our growth muted.

所以聽著，我們看到了——一個較為疲軟的市場，但我們推出了新的 StoreVirtual 3200，MSA 2040，它以極好的價格為入門市場帶來了企業功能。這對我們來說是一個負擔。我們在入門級市場上還沒有提供極具競爭力的產品。你知道，儲存市場正在從高端轉向入門級轉變，速度非常快。所以展望未來，我的意思是，聽著，我們認為市場將繼續疲軟，但這將使整體市場、我們的成長保持低迷。

But we continue to gain share and we are very pleased with our HPE 3PAR all-flash performance that grew 70% year-over-year. So some work to do there, but we feel good about where we are. And on a go forward basis, I think you'll see us return to growth, a little bit more robust growth.

但我們的市佔率仍在不斷成長，我們對 HPE 3PAR 全快閃效能感到非常滿意，其年增了 70%。雖然有一些工作要做，但我們對目前的狀況感到滿意。從未來來看，我認為你會看到我們恢復成長，而且成長會更加強勁。

And through the July quarter, you've essentially met your objective to return 100% of free cash flow, plus half of the H3C cash to shareholders. How should we think about the balance of additional buybacks versus accentuating the remainco portfolio of products after the two spin-merge deals?

截至 7 月當季，你們基本上已經實現了向股東返還 100% 自由現金流以及一半 H3C 現金的目標。在兩次分拆合併交易之後，我們應該如何考慮額外回購與強調剩餘產品組合之間的平衡？

Yes. So sure, so we did the $1.5 billion in the ASR in the third quarter. So there will be some shares taken out in the fourth quarter, as we complete that, as that was a six-month program. I think looking forward, we will have nice cash balances, particularly as we close these transactions. So we're going to continue to execute our disciplined ROI-based approach. We think it has worked well so far. At the same time, we will consider some acquisitions, right? I think SGI is a great example of complementary technology in the high performance compute data analytics space, that we should benefit from, from a profitable growth perspective. So right now, we'll stick with the ROI-based approach, and we'll obviously share more details with you on 2017 at next month's Analyst meeting.

是的。可以肯定地說，我們在第三季的 ASR 中投入了 15 億美元。因此，我們將在第四季度取出一些股票，因為這是一個為期六個月的計劃。我認為展望未來，我們將擁有良好的現金餘額，特別是在我們完成這些交易時。因此，我們將繼續執行基於投資報酬率的嚴謹方法。我們認為到目前為止效果良好。同時我們也會考慮一些收購，對嗎？我認為 SGI 是高效能運算資料分析領域互補技術的一個很好的例子，從獲利成長的角度來看，我們應該從中受益。因此現在，我們將堅持基於投資回報率 (ROI) 的方法，並且我們顯然會在下個月的分析師會議上與您分享有關 2017 年的更多細節。

Okay, thank you, and congrats on the deal.

好的，謝謝，恭喜交易成功。

Oh, thank you. People always ask us, what kind of acquisitions work well for HPE? And I think we've got the formula down, which is what is complementary technology in the HPE strategy of being a leading provider of hybrid IT, with secure next generation software defined infrastructure, and also at the edge. So Aruba and SGI are perfect examples, complementary technology that we can put through our distribution center, that really -- our distribution mechanism that really enhances value for customers. So I think those are two perfect examples of the kind of deals, you could see us do going forward. Unfortunately, there aren't that many deals like that, but when they come along, we'll do them.

噢，謝謝。人們總是問我們，什麼樣的收購對 HPE 有利？我認為我們已經找到了解決方案，這就是 HPE 策略中的補充技術，即成為混合 IT 的領先供應商，擁有安全的下一代軟體定義基礎設施，並且處於邊緣地位。因此，Aruba 和 SGI 就是完美的例子，我們可以透過我們的配送中心採用互補技術，這確實——我們的配送機制確實為客戶提高了價值。所以我認為這是兩個完美交易的例子，您可以看到我們未來會繼續進行此類交易。不幸的是，這樣的交易並不多，但是如果有的話，我們就會去做。

Perfect. Thank you, Katy. Can we have the next question, please?

完美的。謝謝你，凱蒂。我們可以問下一個問題嗎？

Our next question comes from Toni Sacconaghi of Bernstein.

我們的下一個問題來自伯恩斯坦的托尼·薩科納吉。

Yes, thank you. Meg, a year ago, you were out on the roadshow talking about the split of HPE, what is now HPE and HPQ. And at that time, you talked about cash balance being an asset, and that acquisitions would be an integral part of the strategy. You also talked about HPE being a solutions company and a growth company. Less than a year later, it feels like a different story. Cash return has been the absolute priority, acquisitions have been extremely minimal.

是的，謝謝。梅格，一年前，您在路演中談到了 HPE 的拆分，也就是現在的 HPE 和 HPQ。當時，您談到現金餘額是一種資產，而收購將成為策略不可或缺的一部分。您也談到 HPE 是一家解決方案公司和成長型公司。不到一年的時間，情況就變得不一樣了。現金回報一直是絕對優先事項，收購活動極少。

Arguably divesting software and services which are essential ingredients to many solutions seems different. And so, I applaud the flexibility, because the stock price has done extremely well, and it's certainly been in the vein of value creation. But I was wondering if you could comment on what appeared to precipitate this change in thinking from, I think an impression that seemed different to most from the roadshow a year ago? And is there a different end state for Hewlett Packard Enterprise going forward? I mean, is this really a viable ongoing hardware-centric Company going forward, or should we expect more portfolio rationalization? And believe it or not, I have a follow-up.

可以說，剝離對許多解決方案至關重要的軟體和服務似乎是不同的。因此，我很欣賞這種靈活性，因為股價表現非常好，而且肯定符合價值創造的規律。但我想知道您是否可以評論一下是什麼促使了這種思維轉變，我認為這種轉變與一年前路演時大多數人的印像有所不同？那麼，惠普企業未來的最終狀態會有所不同嗎？我的意思是，這真的是一家可行的、持續發展的以硬體為中心的公司嗎，或者我們應該期待更多的投資組合合理化？不管你信不信，我還有一個後續行動。

(Laughter) That is hard to believe. So Toni, let me take you all the way back to November 1, 2015 where we separated HP Inc from Hewlett Packard Enterprise. And we very much laid out the strategy of beating a leading provider in hybrid IT, both in the traditional data center -- which by the way is still a robust market, it's 85% of the spend in IT today. And we are the leader there and we need to continue to gain share. And then, we wanted to focus on software defined infrastructure, which is really the next generation of infrastructure that our customers need. And then finally, build out our cloud platform, and compute storage and networking at the edge. And that's exactly what we've done.

（笑聲） 這真是令人難以置信。那麼東尼，讓我帶你回到 2015 年 11 月 1 日，那天我們將惠普公司與惠普企業分開。我們制定了擊敗混合 IT 領域領先供應商的策略，包括傳統資料中心——順便說一句，這仍然是一個強勁的市場，佔當今 IT 支出的 85%。我們是該領域的領導者，我們需要繼續擴大市場份額。然後，我們希望專注於軟體定義的基礎設施，這實際上是我們的客戶所需的下一代基礎設施。最後，建立我們的雲端平台，並在邊緣計算儲存和網路。這正是我們所做的。

And as we laid out that strategy, we looked at our portfolio. What do we need to add to the portfolio, either in acquisitions or partnerships? What do we need to divest, because those assets are non-core to the strategy. It doesn't mean they're bad assets, it's just not -- they're not core to what we are doing. So if you take the ES transaction, listen, we are still going to be in the services business. In fact, 25% of the revenue of HPE will be services. It's just a different kind of services business, than IT outsourcing, business process outsourcing, and apps maintenance.

當我們制定該策略時，我們審視了我們的投資組合。我們需要透過收購或合作來豐富投資組合嗎？我們需要剝離什麼，因為這些資產對我們的策略來說不是核心資產。這並不意味著它們是不良資產，只是它們不是我們所做工作的核心。因此，如果您接受 ES 交易，請聽我說，我們仍將從事服務業務。事實上，HPE 25% 的收入將來自服務。它只是一種不同於 IT 外包、業務流程外包和應用程式維護的服務業務。

If you think about software, we're still going to be in the software business. It's just not in application software like ITOM, it is system software like OneView, and the software that powers Synergy. So it is a portfolio matching to the strategy that we see our competitive advantage in. As far as -- I think you asked about further divestitures. So enterprise group as currently configured needs to stay together, and I'll tell you why. My view of the market is everything is moving to converged, and we have a differentiated position because we have networking, storage and compute. And that is not -- our two major competitors are missing a key component of that offering. So that we think is important to keep together.

如果你考慮軟體，我們仍然會從事軟體業務。它不僅存在於 ITOM 等應用軟體中，還存在於 OneView 等系統軟體以及為 Synergy 提供支援的軟體中。因此，這是一個與我們認為具有競爭優勢的策略相符的投資組合。至於——我認為您問的是進一步的資產剝離。因此，按照目前的配置，企業集團需要保持在一起，我會告訴你原因。我對市場的看法是，一切都在走向融合，而我們擁有差異化的地位，因為我們擁有網路、儲存和運算。但事實並非如此——我們的兩個主要競爭對手都缺少該產品的一個關鍵組成部分。所以我們認為保持團結很重要。

And then, as you think about technology services, technology services is a key differentiator for our Company. We can help customer's support, maintain, advise and consult across the globe. And it would be uneconomic to simply support storage only or networking only. So TS is absolutely integral. And then finally, obviously campus, branch and edge is a new growth area for the Company. There's no reason we should not own compute at the edge. There is no reason that we shouldn't own analytics at the edge, in addition to obviously Aruba.

然後，當您考慮技術服務時，技術服務是我們公司的關鍵差異化因素。我們可以為全球客戶提供支援、維護、建議和諮詢。而僅僅支持儲存或網路是不經濟的。所以 TS 絕對是不可或缺的。最後，顯然校園、分公司和邊緣是公司的新成長領域。我們沒有理由不擁有邊緣運算能力。除了 Aruba 之外，我們沒有理由不擁有邊緣分析能力。

So I think it's -- to some degree, the strategy has evolved, but really quite consistent with what we laid out. And a big part of what we did this past year was portfolio optimization for the strategy. So on a go forward basis, I think as Tim said, well, I think you can look for more ROI-based smart acquisitions like Aruba, like SGI. And so, I think it's entirely consistent with the strategy that we laid out a year ago.

所以我認為——從某種程度上來說，策略已經發生了變化，但實際上與我們制定的策略非常一致。我們去年所做的很大一部分工作是針對該策略的投資組合進行最佳化。因此，從未來來看，我認為正如蒂姆所說，我認為你可以尋找更多基於投資回報率的智慧收購，例如 Aruba 和 SGI。所以，我認為這與我們一年前所製定的策略完全一致。

Okay. Thank you for that. Just as a follow-up, any time you divest or acquire particularly in this case, you say, well, could I have done what others are going to do on my own? So what I mean by that is, I can't help thinking that HP software business is going to be like 75% of Micro Focus going forward. You're far, far, far bigger than they are, from a revenue perspective. And they believe as a much smaller player, that they can improve operating margins 2,000 basis points.

好的。謝謝你。作為後續行動，任何時候你撤資或收購，特別是在這種情況下，你會說，好吧，我能自己做別人要做的事情嗎？所以我的意思是，我不禁想到，未來惠普的軟體業務將會占到 Micro Focus 的 75% 左右。從收入角度來看，你們比他們大得多。他們相信，作為一家規模較小的公司，他們可以將營業利潤率提高 2,000 個基點。

2,000 basis points on your revenue base is $750 million a year in operating profit, which at a 10 multiple is $7.5 billion. I mean, you haven't given up the business. So I guess, the question is, if margin improvement opportunities are so huge, even for a relatively small player, why did you either not extract a better price? Or why did you not believe that you could have extracted those, and created even more value for shareholders?

以營收為基數計算，2,000 個基點就是每年 7.5 億美元的營業利潤，以 10 倍計算就是 75 億美元。我的意思是，你還沒有放棄生意。所以我想，問題是，如果利潤率提升的機會如此巨大，即使對於相對較小的參與者來說，為什麼你沒有獲得更好的價格呢？或者為什麼您不相信您可以提取這些，並為股東創造更多價值？

So I think the first answer is, this is what Micro Focus does. They are a pure play software company who is expert at managing mature software assets. And as Micro Focus will tell you, most people who work in the software business in Silicon Valley want to grow assets. And actually some of these assets should actually be maintained on a stable platform that extends the value for customers. And it's actually not what we do, it is what they do.

所以我認為第一個答案是，這就是 Micro Focus 所做的事。他們是一家專注於管理成熟軟體資產的純粹軟體公司。正如 Micro Focus 所告訴你的，大多數在矽谷從事軟體業務的人都希望增加資產。實際上，其中一些資產應該在穩定的平台上維護，以擴大客戶的價值。事實上這不是我們做的，而是他們所做的。

But then you come to the question of, why did we do a spin-merge, as opposed to sell the whole business? The reason is, is because our shareholders will be able to ride the upside of what Micro Focus does. Remember, our shareholders will own 50% of the new company. And by the way, I will be a shareholder of that new company given my vested options and my vested RSUs in HPE. And I could tell you, I will be holding those shares, because I think they're going to do very, very well.

但接下來你會問，為什麼我們要進行分拆合併，而不是出售整個業務？原因是，我們的股東將能夠享受 Micro Focus 帶來的好處。請記住，我們的股東將擁有新公司 50% 的股份。順便說一句，鑑於我在 HPE 的既得期權和既得限制性股票單位 (RSU)，我將成為該新公司的股東。我可以告訴你，我會持有這些股票，因為我認為它們的表現會非常非常好。

And so, this was a much better alternative than selling the Company today on a PE multiple of operating income, because you'd get cash. But you'd pay taxes, and then our shareholders wouldn't get to ride the upside, unless they went out and took new money to buy those shares. So we thought that was absolutely the right thing to do.

因此，這比今天以營業收入的本益比出售公司要好得多，因為你會得到現金。但是你需要繳稅，然後我們的股東就無法享受收益，除非他們出去拿出新的資金來買這些股票。所以我們認為這絕對是正確的做法。

And I have to tell you, Toni, in today's world, where technology is changing at lightning speed, I've got to tell you the value of Focus. I'm seeing it every single day. And so, while maybe back in the day, it was great to be a technology supermarket, like the financial supermarkets of yesterday. What I'm pretty sure of, is the next four or five years, it's goring go to be all about speed, agility, and focus and innovation in something that is a more narrow focus.

東尼，我必須告訴你，在當今世界，科技正在以閃電般的速度變化，我必須告訴你專注的價值。我每天都看到它。所以，也許在過去，成為科技超市是一件很棒的事情，就像昨天的金融超市一樣。我非常肯定的是，未來四到五年，一切都將取決於速度、敏捷性、專注力以及在更狹窄的領域中的創新。

Great. Thank you, Toni. Can we have the next question, please?

偉大的。謝謝你，托尼。我們可以問下一個問題嗎？

Our next question comes from Sherri Scribner of Deutsche Bank.

下一個問題來自德意志銀行的謝裡‧斯克里布納 (Sherri Scribner)。

Hi, thank you. I wanted to get a little more detail on the software spin. Will any of the software assets stay with HPE business, or will everything be spun off? And then as part of that question, thinking about what you talked about at the Discover event, and the opportunities in big data, Internet-of-Things and analytics, how does had HPE benefit from those trends, without having that software business? Thanks.

你好，謝謝。我想了解更多關於軟體旋轉的細節。任何軟體資產都會保留在 HPE 業務中嗎，還是會全部剝離出來？然後作為該問題的一部分，思考一下您在 Discover 活動上談論的內容，以及大數據、物聯網和分析領域的機遇，如果沒有軟體業務，HPE 如何從這些趨勢中受益？謝謝。

Sure. So what lives in our software business unit today, is in fact spun and merged with Micro Focus, but we still remain in the software business. It's just a different kind of software business, as I said, system software. The software defined infrastructure is all powered by software, but it's not applications software if you will, like ITOM or ADM. It's actually systems software that powers the infrastructure of our customers.

當然。因此，我們今天的軟體業務部門實際上已經分開並與 Micro Focus 合併，但我們仍然從事軟體業務。正如我所說，這只是一種不同的軟體業務，即係統軟體。軟體定義的基礎設施全部由軟體提供支持，但它不是應用軟體，如 ITOM 或 ADM。它實際上是支援我們客戶基礎設施的系統軟體。

Now you say, all right, so how do we capitalize on the big data and analytics? Well, first of all, we will be the leader in high performance compute with the acquisition of SGI. So companies need to process and compute huge amounts, ever escalating the amounts of data. So really the high performance compute market which is an $11 billion business, growing at 6% to 8%, will really be between HPE, now with SGI and Cray. But many of the other competitors like Dell, Lenovo they're not in that high performance compute business. So as people need financial services, energy, as they need compute to process all of this big data if you will, we will be the leading player there.

現在您會說，好吧，那麼我們要如何利用大數據和分析呢？首先，透過收購 SGI，我們將成為高效能運算領域的領導者。因此，公司需要處理和計算大量數據，數據量不斷增加。因此，高效能運算市場規模真正達到 110 億美元，成長率為 6% 至 8%，將真正由 HPE（現在包括 SGI 和 Cray）主導。但戴爾、聯想等許多其他競爭對手並沒有涉足高效能運算業務。因此，當人們需要金融服務、能源時，當他們需要計算來處理所有這些大數據時，我們將成為這些領域的領導者。

If you think about campus, branch and edge, I think this is the next big growth area. If you think about autonomous driving vehicles, jet engines, healthcare sensors in healthcare beds, and in devices, this was an area where huge amounts of data needs to be processed real-time at the edge, as opposed to enduring the latency of coming back to a major data center. So we're going to be able to capitalize on the IoT trend, by analytics at the edge, and be able to compute and store at the edge.

如果你考慮校園、分店和邊緣，我認為這是下一個主要成長領域。如果你考慮自動駕駛汽車、噴射引擎、醫療床和設備中的醫療感測器，這是一個需要在邊緣即時處理大量數據的領域，而不是忍受返回主要數據中心的延遲。因此，我們將能夠利用物聯網趨勢，透過邊緣分析，並能夠在邊緣進行運算和儲存。

So that's the way we'll play in those trends. It will be different than like Vertica, which will go to Micro Focus, which is a big [columnar] database, that processes huge amounts of data on a database side. But we will pick up the ability to process on compute storage and networking at the edge.

這就是我們在這些趨勢中發揮作用的方式。它與 Vertica 不同，Vertica 將採用 Micro Focus，這是一個大型[列式]資料庫，可在資料庫端處理大量資料。但我們將獲得在邊緣進行運算儲存和網路處理的能力。

Okay, thank you. And then, just a quick clarification for Tim. On the TS, the technology services side, it looks like there's an 8 point difference between the actual revenue and the adjusted revenue. Was there something other than currency in that number, because that seems like a big delta? Thanks.

好的，謝謝。然後，我向提姆簡單解釋一下。在 TS（技術服務方面），實際收入和調整後收入之間似乎存在 8 個百分點的差異。這個數字中除了貨幣之外還有其他東西嗎，因為這看起來像是一個很大的增量？謝謝。

The H3C transaction impacted that as well.

H3C 交易也對此產生了影響。

Thanks.

謝謝。

Because H3C had TS in China that went with that deal.

因為 H3C 在中國有與該交易相符的 TS。

Okay, great. Thank you.

好的，太好了。謝謝。

Thank you, Sherri. Can we have the next question, please?

謝謝你，謝裡。我們可以問下一個問題嗎？

Our next question comes from Steve Milunovich of UBS.

我們的下一個問題來自瑞銀的史蒂夫·米盧諾維奇。

Thank you very much. Well, we've come a long way from better together here. I give you a lot of credit, because you're basically creating these very focused companies, whatever Computer Sciences is called. And now Micro Focus, which I think does create a lot of shareholder value. But again, when all is said and done, you're becoming more and more a hardware company. And I would think your competitors ultimately are going to be primarily Cisco and Dell.

非常感謝。嗯，我們已經一起走了很長一段路，希望能有更好的成績。我對你非常讚賞，因為你基本上創建了這些非常專注的公司，不管電腦科學叫什麼。現在還有 Micro Focus，我認為它確實創造了許多股東價值。但話說回來，當一切都塵埃落定，你們就會越來越成為一家硬體公司。我認為你們的競爭對手最終主要會是思科和戴爾。

And obviously, they'll use their large size against you, and claim they've got AI capabilities and so forth. How do you see matching up against them, when all is said and done? And are you going to have a relationship with Micro Focus that's kind of a favored nation, like you appear to have with Computer Sciences going forward?

顯然，他們會利用自己龐大的體型來對付你，並聲稱他們擁有人工智慧能力等等。當一切都塵埃落定之後，您如何看待與他們的對抗？您是否會與 Micro Focus 建立一種受青睞的關係，就像您與電腦科學未來建立的關係一樣？

Yes, the answer to that is absolutely yes. And actually beyond that, you saw what we announced today with SUSE, where they'll be our preferred partner for Linux, as well as the OpenStack distro. And listen, a lot of the software products are going in the spin-merge will be important to us going forward. So there will be a relationship there.

是的，答案是肯定的。事實上除此之外，您還看到了我們今天與 SUSE 宣布的合作，他們將成為我們在 Linux 和 OpenStack 發行版方面的首選合作夥伴。聽著，許多進行分拆合併的軟體產品對於我們未來的發展至關重要。所以那裡會存在一種關係。

So let me give just you a sense of -- I think we're in a great position to compete with both Cisco and Dell. So for example, actually the HPE go forward strategy will be about a $28 billion Company that's only slightly smaller than Dell's enterprise business, and it is more focused with better innovation. I think we should just contrast our strategy with Dell, okay?

所以讓我來給你們介紹一下——我認為我們處於一個與思科和戴爾競爭的有利位置。舉例來說，實際上 HPE 的未來策略將是一家價值約 280 億美元的公司，其規模僅比戴爾的企業業務略小，而且更專注於更好的創新。我認為我們應該將我們的策略與戴爾進行對比，好嗎？

So we are getting smaller, while they're getting bigger. And this is important, because I believe speed and agility is critical, in innovation and go-to-market. The second is, they are levering up and we are delevering. We have $5.3 billion of net cash on the operating Company, and we're going to have a lot more by the time we're done with these transactions. And that gives us dry powder. It also gives us the ability to return cash to shareholders.

因此，我們變得越來越小，而他們變得越來越大。這很重要，因為我相信速度和敏捷性對於創新和進入市場至關重要。第二，他們在增加槓桿，而我們在去槓桿。我們在營運公司擁有 53 億美元的淨現金，當我們完成這些交易時，我們將擁有更多。這樣我們就得到了乾粉。這也使我們能夠向股東返還現金。

And I think that it's difficult to be levered as much as Dell is in this environment. And secondly, we're leaning into new technology, either through our own innovation, acquisitions, or partnerships, and we've got major focus on our side. What they are doing is doubling down on old technology and a cost take-out play. And listen, I think it might be quite successful for the leadership team there, from a financial perspective. I'm not so sure it's good for customers.

我認為，在這種環境下，很難像戴爾一樣發揮影響力。其次，我們正在向新技術邁進，無論是透過我們自己的創新、收購或合作，我們都將重點放在我們自己身上。他們正在做的是加倍投入舊技術和降低成本的策略。聽著，我認為從財務角度來看，這對那裡的領導團隊來說可能是相當成功的。我不太確定這對顧客是否有好處。

Okay. And then on enterprise group, just want to confirm that you said you do expect storage growth in the future, now that's reported or adjusted or whatever? But also could you talk about servers, and what went on in the quarter, and do you expect that to return to growth?

好的。然後關於企業集團，我只是想確認一下您是否說過您確實預計未來儲存量會成長，這是報告還是調整後的數據？但是您也可以談談伺服器，以及本季發生了什麼，您是否預計它會恢復成長？

Sure. And by the way I forgot to address Cisco in your last question. So listen, Cisco is a good competitor, but they are missing a key element which is storage. And as the -- as this converges, I think as the environment converges, and we look at Hyper Converged and on Synergy, we're innovating really nicely now for the traditional data center, as well as software defined data center. And I got to tell you, Aruba at the edge is killing them. And a 20% growth rate above our internal plan, and we're just winning deals hand-over-fist there. So we feel really good about our ability to compete with Cisco.

當然。順便說一句，我忘了在您最後一個問題中提到思科。所以聽著，思科是一個很好的競爭對手，但他們缺少一個關鍵要素，那就是儲存。我認為，隨著這些因素的融合，隨著環境的融合，以及我們對超融合和協同效應的關注，我們現在正在針對傳統資料中心以及軟體定義的資料中心進行非常好的創新。我得告訴你，邊緣的阿魯巴正在殺死他們。成長率比我們的內部計畫高出 20%，而且我們在那裡輕鬆贏得了交易。因此，我們對自己與思科競爭的能力感到非常滿意。

Okay, so back to servers. So listen, what's happening in servers is there is sort of core server growth, then there is Tier 1 servers which is to the big service providers, and then is obviously, high performance compute. And the reason we did the SGI acquisition, is to really stake out a great position in an $11 billion business, as I said before that's growing 6% to 8%, that's very profitable for the compute itself. But also there's very high TS attach to high performance compute. Core servers around the globe are under some pressure right now, but you saw what we did in terms of increasing the margin. And we are doubling down on SMB, which actually is still -- there's pockets of growth in that area, and we're also doing workload specialization.

好的，回到伺服器。所以聽著，伺服器領域正在發生的事情是，核心伺服器有所成長，然後是一級伺服器，也就是大型服務供應商，然後顯然是高效能運算。我們收購 SGI 的原因是為了在這個價值 110 億美元的業務中佔據一席之地，正如我之前所說，這個業務的成長率為 6% 到 8%，這對於計算本身來說是非常有利可圖的。但高效能運算也需要非常高的 TS。目前，全球的核心伺服器都面臨著一些壓力，但您看到了我們在提高利潤率方面所做的努力。我們正在加倍投入中小企業，實際上該領域仍有成長空間，而且我們也在進行工作負載專業化。

Okay, we have the best compute in the world to run SAP HANA. It's not even close with anyone else. So we're specializing around workload. And then obviously, there was a tough compare because of Cloudline a year ago. I mean, we have just ramped that business into a multi-billion dollar business. And so, it's hard to compete with those compares, but we expect to continue to gain share in that market profitably.

好的，我們擁有世界上最好的運算能力來運行 SAP HANA。它甚至與其他任何人都不相近。因此我們專注於工作量。顯然，由於一年前出現了 Cloudline，因此很難進行比較。我的意思是，我們剛剛將這項業務發展成為價值數十億美元的業務。因此，我們很難與這些競爭對手競爭，但我們預計將繼續在該市場獲得獲利份額。

We're not in it for share for share's sake. We don't want to take unprofitable deals. But if we continue to work on our supply chain and the rationalization, we become ever more competitive there. And we're very mindful, that ultimately there is Chinese competitors there as well. And whether that's Huawei or Lenovo, it's not just Dell. So we're very aware of the cost structure we have to have to continue to compete.

我們參與其中並不是為了分享而分享。我們不想接受無利可圖的交易。但如果我們繼續致力於我們的供應鏈和合理化，我們將變得更具競爭力。我們非常清楚，那裡最終也會有中國競爭對手。無論是華為還是聯想，都不僅僅是戴爾。因此，我們非常清楚我們必須具備的成本結構才能繼續保持競爭力。

Any prediction of growth?

有任何成長預測嗎？

I think low single-digits is probably what we'll grow. It will depend on how much Tier 1 Service provider business we want to take. But I would say, what you saw 1%, 2% is probably a good estimate going forward.

我認為我們的成長率可能只有個位數。這取決於我們想要承接多少一級服務提供者業務。但我想說，你所看到的 1%、2% 可能是一個很好的未來估計。

Thank you.

謝謝。

Next question, please?

請問下一個問題？

Our next question comes from Maynard Um of Wells Fargo.

下一個問題來自富國銀行的梅納德·烏姆。

Hi, thanks. I was wondering if you can help me understand the $700 million after-tax separation costs? When you say, we'll unlock a more attractive financial profile, I guess, what exactly does that mean, are those redundant employee restructuring costs, and will that drive up EG margins? And I have a follow-up.

你好，謝謝。我想知道您是否能幫助我了解 7 億美元的稅後分離成本？當您說我們將解鎖更具吸引力的財務狀況時，我想，這到底意味著什麼，那些冗餘員工是否是重組成本，這會提高 EG 利潤率嗎？我還有一個後續問題。

I think its really a combination of a couple things. When you -- when we separate this software business, and you look at the remaining piece of HPE, we're going to be -- if you were to extract ES and software from our 2016 financials, to Meg's earlier comments revenue growth would be an incremental 300 basis points. Margins would be up an incremental 100 basis points, just north of 10%, and free cash flow as a percent of revenue would be up 50%. If you look at the absolute free cash flow, it would be relatively neutral, driven by the fact that software does generate some free cash flow. But that's offset by the pressure in ES. So when we're talking about the financial profile, it's really related to remainco, if you will.

我認為這實際上是幾件事的結合。當我們將軟體業務分離出來，再看看 HPE 的剩餘部分時，我們會——如果你從 2016 年的財務報表中提取 ES 和軟體，那麼根據 Meg 之前的評論，收入增長將增加 300 個基點。利潤率將增加 100 個基點，略高於 10%，而自由現金流佔收入的百分比將增加 50%。如果你看絕對自由現金流，它會相對中性，這是因為軟體確實會產生一些自由現金流。但這被 ES 的壓力所抵消。因此，當我們談論財務狀況時，它實際上與 remainco 相關，如果你願意的話。

And I have to say, that with our enterprise group, really being now the anchor for remainco, we've been very conscious about making sure that we have, got an overhead cost structure that is in line with a $28 billion business. That we're making changes to how enterprise group is organized internally.

我必須說，我們的企業集團現在實際上是 remainco 的支柱，我們非常清楚，要確保我們的間接成本結構與 280 億美元的業務相符。我們正在改變企業集團的內部組織方式。

There will be savings around our OpenStack distro with our new relationship with SUSE. And then finally, moving HP Labs, Hewlett Packard Labs to EG is going to tighten the linkage between downstream development and commercialization, which I think is something that needs to be done. So we are all about making enterprise group, more cost effective, as we drive the remainco strategy.

透過與 SUSE 建立新的合作關係，我們將在 OpenStack 發行版方面節省開支。最後，將 HP 實驗室、惠普實驗室遷移到 EG 將加強下游開發和商業化之間的聯繫，我認為這是必須要做的事情。因此，在推動「剩餘公司」策略的同時，我們致力於讓企業集團更具成本效益。

And I'd also add on remainco, keep in mind, that the recurring Op profit would be about [60]%.

我還要補充一點，請記住，經常性營運利潤大約是 [60]%。

Great. And then it looks like Dell raised pricing in the UK to offset the currency impact from Brexit. I was wondering if you could just talk about what impact that had on your business, both in terms of revenue and margin, and how we should think about that going forward? Will the hedging offset that to the bottom line? Thanks.

偉大的。然後看起來戴爾提高了英國的定價以抵消英國脫歐帶來的貨幣影響。我想知道您是否可以談談這對您的業務有何影響，包括收入和利潤，以及我們應該如何看待未來？對沖能抵消此影響嗎？謝謝。

Well, let me tell you what we saw, from a demand perspective, and Tim can talk about our broader hedging strategy. We were not able to hedge in the quarter for the pound degradation, but what we saw was actually a pause in purchasing in the UK, certainly the UK public sector. But also the UK, and then more broadly Europe which was, this was unexpected, a big change. Let's take a pause, and decide what we want to do here, and we saw it in a very marked way.

好吧，讓我從需求的角度告訴你我們看到了什麼，蒂姆可以談談我們更廣泛的對沖策略。本季我們無法對沖英鎊貶值的影響，但我們實際上看到的是英國的採購暫停，尤其是英國公共部門的採購暫停。但對英國乃至整個歐洲來說，這是一個出乎意料的巨大變化。讓我們停下來，決定一下我們想在這裡做什麼，我們以非常明顯的方式看到了這一點。

What I will say, in the last couple weeks, we've actually seen orders pick up again. It was almost like they took a pause, and basically, had to take stock of what was happening, and then basically -- the orders have started to flow again. I mean, we continue to also monitor the pricing, the competitive pricing environment that we see. And we adjust as necessary, particularly in the channel. So the channel is where we serve SMB. And that's where our ability to sort of move the pricing in response to competition, we look at that actually every single week, sometimes multiple times a week.

我想說的是，在過去的幾周里，我們確實看到訂單再次回升。這幾乎就像他們暫停了一下，基本上，必須評估正在發生的事情，然後基本上——訂單又開始流動了。我的意思是，我們還將繼續監控價格以及我們所看到的競爭性價格環境。我們會根據需求進行調整，特別是在通路方面。所以通路就是我們為中小企業提供服務的地方。這就是我們根據競爭情況調整價格的能力，我們實際上每週都會關注這一點，有時一周會關注多次。

Great. Thank you, Maynard. Can we have the next question, please?

偉大的。謝謝你，梅納德。我們可以問下一個問題嗎？

Our next question comes from Shannon Cross of Cross Research.

我們的下一個問題來自 Cross Research 的 Shannon Cross。

Thank you very much for taking my question. I want to talk about more about TS. It was up this quarter, for the first time in awhile, and on a sort of -- net of divestitures and constant currency basis.

非常感謝您回答我的問題。我想進一步談論 TS。本季度，該數字出現了上漲，這是一段時間以來的首次上漲，並且是基於資產剝離淨額和固定匯率計算的。

How do we think about it, as you look at the placements you've made over the last year? I think you mentioned some benefit from some of the hardware that went in place. But just as you look at the mix of hyper scale and what have you, that you put out there, do you expect this to continue to grow, sort of net of everything? Is there an opportunity, given weakness in certain quarters that it may dip? Just how should we look at it, because it's obviously very important from a margin perspective?

回顧過去一年的安排，我們對此有何看法？我認為您提到了一些硬體到位帶來的好處。但是，正如您所看到的，超大規模的混合以及您所推出的產品，您是否預計它會繼續增長，形成萬物網絡？鑑於某些方面的疲軟，它是否有機會下跌？我們該如何看待它呢？因為從利潤角度來看它顯然非常重要。

So I think a little understood element of HPE is the dramatic transformation that TS has gone through. TS is, and was a very profitable business, that was largely attached to business-critical systems, very profitable, very high attach. I mean, you didn't really sell business critical systems without a TS attach. And when business-critical systems, both from a market perspective, as well as the Oracle Itanium situation, by all rights TS should be down 25%.

因此，我認為 HPE 的一個鮮為人知的元素是 TS 所經歷的巨大轉變。 TS 現在是、過去是利潤豐厚的業務，主要與業務關鍵型系統相關，利潤豐厚，附加價值很高。我的意思是，如果沒有 TS 附件，您實際上就不會銷售關鍵業務系統。而當業務關鍵型系統無論從市場角度，或從 Oracle Itanium 的情況來看，TS 照理說應該下降 25%。

Do you remember Shannon over the last four or five years, BCS was down 25% like clockwork, every single quarter for four years. It's growing a little bit now. But by all rights, TS should have shrunk with BCS, and it did not. And the reason it did not was very impressive, new product offerings, proactive care, other areas where we help customers maintain their data center estate. And so, the fact that it has actually only been down a few percentage points over the last 12 months is a testament to the leadership team in that business. And now what you're seeing is those new product offerings are starting to get real traction. Orders has been positive the last three or four quarters, and those orders are translated into growth this quarter. Not a significant amount of growth, but 1% we'll take it all day long, because it is a very, very profitable business.

你還記得香農嗎？在過去的四、五年裡，BCS 就像鐘錶一樣，每季都下降了 25%，持續了四年。現在它正在長大一點。但照理說，TS 應該隨著 BCS 而縮小，但事實卻並非如此。而它沒有這樣做的原因非常令人印象深刻，新產品的推出、主動關懷以及我們幫助客戶維護其資料中心資產的其他領域。因此，事實上，過去 12 個月中它實際上只下降了幾個百分點，這證明了該企業領導團隊的實力。現在您看到的是這些新產品開始真正受到歡迎。過去三、四個季度的訂單量一直呈正增長，這些訂單在本季度轉化為增長。雖然成長幅度不大，但只要有 1% 我們就會全力以赴，因為這是一個非常非常有利可圖的業務。

So we have more work to do on technology services. I will tell you it is the benefit of now being a smaller, more focused Company. And Antonio Neri and I are going to spend a whole lot of time now, on what is the next iteration of technology services. And whether that's flexible capacity services that allows consumption-based model, whether it's proactive care, data center care, we're going to spend a lot of time there, because it is a key strategic enabler of remainco HPE.

所以我們在技術服務方面還有很多工作要做。我會告訴你，這就是現在成為一家規模較小、更專注的公司的好處。安東尼奧·內里和我現在將花費大量時間研究下一代技術服務。無論是允許基於消費模式的靈活容量服務，還是主動護理、資料中心護理，我們都會在那裡花費大量時間，因為它是 remainco HPE 的關鍵策略推動因素。

Okay. And then, just as a follow-up, I'm curious, do you feel for the core Company that you're going to have left, the cost structure is relatively it close to where it needs to be? Or are there more opportunities whether -- I think you mentioned a little bit, in terms of the corporate costs, but then just also within EG, where you might be able to optimize over time to perhaps offset some pressure and mix or pricing?

好的。然後，作為後續問題，我很好奇，您是否認為對於您將要留下的核心公司來說，成本結構相對接近其所需的水平？或者是否存在更多機會 - 我認為您提到了一點，就企業成本而言，但在 EG 內部，您可以隨著時間的推移進行優化以抵消一些壓力和組合或定價？

Yes, sure. I think from a cost structure perspective, we spent probably the last 18 months, we've done some detailed benchmarking, particularly in the functional areas, as to where the business needs to be, basically cost as a percent of revenue. So we're getting closer to those benchmarks. We're not quite there yet, but we are close, and we are there in some of the functions. So as we have done these divestitures, or as we're doing these divestitures, we obviously incorporate that into what the new cost structure needs to look like. And obviously, we need to be very aggressive around what we call stranded costs.

是的，當然。我認為從成本結構的角度來看，我們可能花了 18 個月的時間，做了一些詳細的基準測試，特別是在功能領域，關於業務需要達到的位置，基本上是成本佔收入的百分比。因此，我們正在接近這些基準。我們還沒有完全實現這一目標，但我們已經接近了，並且在某些功能上我們已經實現了這一目標。因此，當我們進行這些資產剝離時，或者當我們正在進行這些資產剝離時，我們顯然會將其納入新的成本結構中。顯然，我們需要非常積極地應對所謂的擱淺成本。

So I think the good news is when you look at the HPE/HPI separation, we did have some dissynergies we called them. We have worked those through the system. With the H3C divestiture, we've gotten much better with identifying the stranded costs, would be much more proactive in managing them out. We're starting to see those come out. So we're confident that we can continue to do that, to get to the benchmarks we need to get to, when these transactions are done.

因此我認為好消息是當你看到 HPE/HPI 分離時，我們確實存在一些我們稱之為不協同的現象。我們已經透過系統解決了這些問題。隨著 H3C 業務的剝離，我們在識別擱淺成本方面變得更加得心應手，能夠更加積極主動地管理這些成本。我們開始看到這些出現。因此，我們有信心，當這些交易完成時，我們可以繼續這樣做，以達到我們需要達到的基準。

I'd just add a couple more things. When you're going to take -- when we've been streamlining the cost structure of this Company for four or five years. Now we are starting to do things differently, because you can only take out so much costs. There's only so much low-hanging fruit, you have to do things differently. And whether that is supply chain and logistics, whether that is how we are organized internally, with all R&D under one R&D leader. Whether it is putting our software defined infrastructure and our cloud offering under one leader, whether it is putting all of our go-to-market under one leader, where we have consistent go-to-market strategy, discounting across the board.

我只想補充幾點。當你要採取行動時──我們已經精簡這家公司的成本結構四、五年了。現在我們開始以不同的方式做事，因為你只能承擔有限的成本。唾手可得的成果只有這麼多，你必須採取不同的做法。無論是供應鏈和物流，或是我們的內部組織方式，所有研發都由一位研發負責人負責。無論是將我們的軟體定義基礎設施和雲端產品置於一位領導者之下，還是將我們所有的行銷活動置於一位領導者之下，我們都擁有一致的行銷策略，全面折扣。

Frankly, we were much better at minimizing discounting in APJ and EMEA, than we were in the United States. We now have that discipline across the Company. And then, finally corporate overhead. We got to have a corporate overhead that designed for a $28 [billion] company. And when we started, we had a corporate overhead designed for $110 billion company, and then a $50 billion company, and now a $28 [billion] Company. I have to say, I'm really pleased with our ability to right-size the corporate overhead, and be lean and mean. And that includes everything from HR, finance, legal, IT, things like real estate, systems. So we've made a lot of progress, but you'll see more of that benefit I think in 2017 and 2018.

坦白說，我們在亞太及日本地區 (APJ) 和歐洲、中東和非洲地區 (EMEA) 減少折扣方面比在美國做得好得多。現在我們整個公司都實行這種紀律。最後是公司管理費用。我們必須為一家價值 280 億美元的公司設計企業管理費用。當我們開始的時候，我們的企業管理費用是 1100 億美元，然後是 500 億美元，現在是 280 億美元。我必須說，我真的很高興我們能夠合理調整公司管理費用，並且精簡開支。這包括人力資源、財務、法律、IT、房地產、系統等各個方面。因此，我們已經取得了很大進展，但我認為在 2017 年和 2018 年你會看到更多的好處。

Thank you, Shannon. I think we have time for one more question, please?

謝謝你，香農。我想我們還有時間再問一個問題，可以嗎？

Our final question comes from Jim Suva of Citi.

我們的最後一個問題來自花旗銀行的 Jim Suva。

Thank you, Meg, and congratulations to you and your team there at Hewlett Packard Enterprise. My question is regarding the separation costs. If I remember from the press release, I think it was around $700 million. Is that correct?

謝謝你，梅格，恭喜你和惠普企業的團隊。我的問題是關於分離費用。如果我記得新聞稿的話，我認為金額大約是 7 億美元。對嗎？

And how should we think about the timing of that, and is that kind of all-in costs? And I kind of also take it relative to say the divestiture of the services was $900 million. And while $900 million is $200 million more than $700 million, it seems like to me that the services was a much bigger, heavier lifting divestiture. So I almost wonder, is $700 million kind of --why is it so much, and not much lower? Or is it just so much integrated in Hewlett Packard Enterprise, that's why it costs so much to break out? Thank you.

我們該如何考慮這個時機，這是否是全部成本？我也相對地認為，服務剝離的金額為 9 億美元。雖然 9 億美元比 7 億美元多了 2 億美元，但在我看來，服務業務的剝離規模更大、負擔更重。所以我幾乎想知道，7 億美元是不是有點——為什麼這麼多，而不是低很多？或者它只是在惠普企業中整合了太多功能，所以拆分起來需要花費如此高的成本？謝謝。

Sure. So yes, so $700 million is the right number. Again, we feel like the value that transaction is driving is phenomenal for HPE, as well as its shareholders. However, to realize that value, we need to make investments, and allocate resources to do the separation. So to your point, software although the activities are similar in nature to the transaction in ES, they are discrete. And they're not necessarily driven by revenue base or headcount levels. So when you look at software, it's a global complex business.

當然。是的，7 億美元是正確的數字。再次，我們覺得這筆交易對於 HPE 及其股東來說帶來的價值是驚人的。然而，為了實現這一價值，我們需要進行投資，並分配資源來進行分離。所以就你的觀點而言，軟體雖然活動本質上與 ES 中的交易類似，但它們是離散的。而且它們不一定受收入基礎或員工人數水準的驅動。因此，當你看軟體時，它是一個全球性的複雜業務。

It has multiple legal entities that have been accumulated over time through a series of transactions. And because of that when you look at the tax, the finance, the legal, the operating structure, it is still very, very complicated. So in order to separate that, there are some large expense items in there. For example, separating 650 IT systems, doing the carve-out financials, translating GAAP to IFRS, splitting 150 legal entities in 60 countries, trying to figure out what we want to do with 200 real estate sites across the globe. So there's certainly a lot of work that needs to be done there. The good news is we have done this before, so we know how to do it. The team has been very proactive, and we're all over it. We have the work streams identified, so we're confident we'll get there, when we go forward.

它擁有多個法律實體，這些實體是透過一系列交易逐漸累積起來的。因此，當你考慮稅收、財務、法律和營運結構時，它仍然非常非常複雜。因此，為了將其分開，其中有一些大額開支項目。例如，分開 650 個 IT 系統、進行財務剝離、將 GAAP 轉換為 IFRS、拆分 60 個國家的 150 個法人實體、試圖弄清楚我們想如何處理全球 200 個房地產站點。因此，肯定還有很多工作要做。好消息是我們以前做過這件事，所以我們知道如何做。團隊一直非常積極主動，我們對此非常關注。我們已經確定了工作流程，因此我們有信心在前進的過程中實現目標。

The other thing I think that's important, Jim, is we have come -- on these separations that we have done to date, whether it was HP Inc from Hewlett Packard Enterprise, whether it's ES from Hewlett Packard Enterprise, we have come in on time, and actually below budget. And so, we're really proud of that, and we expect that to happen. I mean, I don't know how much. I mean, listen, $700 million is what you should have in your models. If we're on target, we ought to come in a little lighter than that but --.

吉姆，我認為另一件重要的事情是，我們迄今為止所做的這些分離，無論是 HP Inc 從 Hewlett Packard Enterprise 分離，還是 ES 從 Hewlett Packard Enterprise 分離，我們都按時完成了，並且實際上低於預算。因此，我們對此感到非常自豪，並且我們期待這種情況發生。我的意思是，我不知道有多少。我的意思是，聽著，7 億美元是你的模型中應該有的。如果我們達到了目標，我們應該做得更輕鬆一些，但是——。

Yes, I mean, and the other way -- the other way I think about it is, the benefit of the deal far outweighs the cost, right? So when we get that $2.5 billion cash dividend, and that will be onshore cash, that far outweighs the cost of doing the transaction.

是的，我的意思是，從另一個角度來看——我從另一個角度考慮，這筆交易的收益遠遠超過成本，對嗎？因此，當我們獲得 25 億美元的現金股利時，這將是境內現金，這遠遠超過了交易成本。

Thank you for the details, and congratulations to you and your team.

感謝您的詳細信息，並祝賀您和您的團隊。

Thank you very much.

非常感謝。

Appreciate it. Thank you everyone for joining today.

非常感謝。感謝大家今天的參與。

Ladies and gentlemen, this concludes our call for today. Thank you. You may now disconnect.

女士們、先生們，我們今天的通話到此結束。謝謝。您現在可以斷開連線。