Hewlett Packard (HPE) Buys Pachyderm to Boost AI Offerings

Hewlett Packard Enterprise HPE recently expanded its AI-at-scale solution portfolio with the acquisition of the San Francisco-based startup delivering software, based on open-source technology, to automate reproducible machine learning pipelines that target large-scale AI applications — Pachyderm. The buyout, which is anticipated to conclude in this month, stands on the company’s investment in Pachyderm through Hewlett Packard Pathfinder, to upscale time-to-market for AI innovation at reduced data processing and operating costs.

Pachyderm’s reproducible AI software improves HPE’s existing AI-at-scale offerings by efficiently maximizing machine learning initiatives of the data scientists, optimizing their infrastructure cost and ensuring that data is reliable and safe anywhere in the AI ecosystem. HPE’s AI-at-scale combines its leading supercomputing technologies that are foundational for optimized AI infrastructure, and the HPE Machine Learning Development Environment to aid enterprise users train more accurate AI models quickly and at scale, on several of the world’s fastest supercomputers purpose-built for demanding AI workloads.

Pachyderm Complements HPE’s AI-at-scale Portfolio

HPE integrates Pachyderm’s reproducible AI solutions in a single integrated platform to provide an advanced data-driven pipeline that automatically refines, prepares, tracks and manages repeatable machine learning processes which are used throughout the development and training environment. This will allow the company to enable quick development and deployment of large-scale AI applications with benefits like data lineage, data versioning and efficient incremental data processing.

HPE Machine Learning Development Environment, Pachyderm software and other solutions are integrated by Lockheed Martin’s open architecture approach to AI-at-scale, AI Factory. The company intends to combine Pachyderm with the upcoming versions of HPE Machine Learning Development System and reduce complexity, cost to develop and train models with a complete, ready-to-use solution.

Currently, Pachyderm’s software is available for integration with HPE’s existing AI software solutions.

Hewlett Packard Enterprise Company Price and Consensus

Hewlett Packard Enterprise Company Price and Consensus

Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote


Hewlett Packard views AI, Industrial Internet of Things and distributed computing as the next major markets. It has been pursuing acquisitions to focus more on high-margin hybrid IT models that leverage on-premises and cloud-computing power. In 2021, it acquired four businesses, Ampool, Zerto, Determined AI and CloudPhysics, which expanded its capabilities and product portfolios in the fast-growing cloud space including software-defined networks and converged and hyper-converged infrastructure.

HPE has been benefiting from strong executions in clearing backlogs, improved supply chain and increased customer acceptance. The company’s efforts to shift focus to higher-margin offerings like Intelligent Edge and Aruba Central Hyperconverged Infrastructure are aiding its bottom-line results. However, execution challenges faced by the company in Intelligent Edge segment around Aruba sales are hurting its top-line growth.

Zacks Rank & Stocks to Consider

Hewlett Packard currently carries a Zacks Rank #3 (Hold). Shares of HPE plunged 6.3% in the past year.

Some top-ranked stocks from the broader Computer and Technology sector are Bandwidth BAND, Clearfield CLFD and Zscaler ZS. While Bandwidth and Clearfield sport a Zacks Rank #1 (Strong Buy), Zscaler carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Bandwidth’s fourth-quarter 2022 earnings has been revised by a penny to 4 cents per share over the past 60 days. For 2022, earnings estimates have moved north by 25 cents to 37 cents per share in the past 30 days.

BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 65.3% in the past year.

The Zacks Consensus Estimate for Clearfield's first-quarter fiscal 2023 earnings has been revised 15 cents northward to $1.02 per share over the past 60 days. For fiscal 2023, earnings estimates have improved by 37.5% to $4.95 per share over the past 60 days.

CLFD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 39.7%. Shares of the company have risen 20.6% in the past year.

The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 3 cents north to 29 cents per share over the past 30 days. For fiscal 2023, earnings estimates have moved north by 6 cents to $1.23 per share in the past 30 days.

ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 57.8% in the past year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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