HPE Says It’s Weathering Profit Squeeze at Start of New AI Era

Hewlett Packard Enterprise (HPE) CEO Antonio Neri has acknowledged that the company is facing a profit squeeze as it transitions into the new era of AI-driven demand. Despite this challenge, Neri believes HPE is well-positioned to weather the changes. The article highlights that as the IT industry shifts towards AI and cloud-based services, HPE is experiencing a narrowing of profit margins. However, Neri remains optimistic, stating that the company is adapting to this new landscape and is prepared to navigate the evolving market dynamics. HPE is reportedly investing in areas such as edge computing and data analytics to capitalize on the growing demand for AI-powered solutions. The company is also focusing on strengthening its partnerships and expanding its cloud services offerings to meet the changing needs of its customers. While the profit squeeze is a concern, Neri's comments suggest that HPE is taking proactive measures to ensure its long-term success in the rapidly transforming IT industry.