HPE’s Integration Strategy for Networking Portfolios
Hewlett Packard Enterprise has unveiled what it describes as a “grand plan” to integrate the recently acquired Juniper Networks Mist AIOps platform with its existing Aruba networking portfolio, according to statements from company executives. The strategy centers on what HPE Networking President Rami Rahim calls “cross-pollination” between the two platforms using their microservices-based architectures.
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“We can keep these platforms and their unique deployment capabilities in place and start to cross-pollinate,” Rahim stated during HPE’s Securities Analyst meeting. “Mist has done amazing work in the AIOps space. I can take that as a microservice and apply it to Aruba. Aruba has done great work in security integration. That can be a microservice that can be applied to Mist.”
Accelerated Innovation Through Microservices
The microservices architecture of both platforms makes the integration process “actually quite straightforward,” sources indicate. This approach reportedly allows HPE to develop features once and deploy them across both platforms, potentially accelerating innovation while making engineering efforts more efficient.
Rahim, who previously served as Juniper Networks CEO before joining HPE following the $13.4 billion acquisition completed in July, noted that he found himself with what he described as a “bit of an embarrassment of riches” with two strong networking platforms. “Honestly now that I have had an opportunity to look under the covers on the Aruba side I am really impressed,” he stated according to the report.
Complementary Platform Strengths
Analysts suggest the two Artificial Intelligence for IT Operations platforms bring complementary strengths to the combined organization. “Mist is a public cloud-only AIOps platform so as great as Mist was in AIOps capabilities, we were shut out of any opportunities that required different deployment models like private cloud or virtual private cloud networking or even on-prem,” Rahim explained. “When I looked at Aruba, they have actually made more progress in areas like security integration, agentic AI capabilities.”
This integration approach contrasts with industry norms, the report states. “Our peers in the industry have taken years to try to figure out how to integrate portfolios and we are showing our customers much to their amazement that we can do it in a much, much less period of time,” Rahim claimed.
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Financial Integration Timeline and Cost Synergies
HPE Chief Financial Officer Marie Myers outlined the financial integration roadmap, indicating that sales teams will be fully integrated by the first quarter of 2026. Channel programs and sales tools will be aligned throughout next year to enable partners to sell the complete portfolio, according to the analysis.
The company reportedly expects to realize $200 million in Juniper-related cost synergies in the first year of combined operations, with another $200 million in year two and $200 million in year three. An additional $300 million in cost savings is expected from HPE’s Catalyst transformation initiative, bringing total targeted structural cost savings to $1 billion.
“While workforce reductions are always challenging, they are necessary,” Myers stated, though specific numbers were not provided. The company is also reportedly refining its manufacturing footprint and aligning headcount to “go-forward operational needs.”
Market Reaction and Growth Projections
For Fiscal Year 2026, Hewlett Packard Enterprise reportedly expects non-GAAP diluted earnings per share of $2.20 to $2.40 per share on revenue growth of five to 10 percent, with networking sales projected in the low-to-mid single digits. Following this forecast, HPE shares fell nine percent to $22.80 in after-hours trading, according to market data.
HPE CEO Antonio Neri addressed the modest networking growth projection, noting that while campus and branch networking have “momentum,” AI data center switching sales will “take time” to materialize due to technical proof points required to win deals. The integration of networking assets with compute and storage portfolios, along with sales harmonization scheduled for early Fiscal Year 2026, are also factors, the report suggests.
Industry Response and Channel Strategy
C.R. Howdyshell, CEO of solution provider Advizex, applauded HPE’s “no customer left behind” strategy, stating that “it all comes down to how we collaborate to benefit the customer.” Howdyshell noted that networking represents one of the biggest growth opportunities for his company, with plans to double that business within three years or less.
The integration comes amid significant movement in the technology sector, with reports indicating that young startup founders continue to secure substantial funding while established players like Scale AI are adjusting their operational strategies. Meanwhile, broader market conditions remain stable despite earnings fluctuations, and companies like Google continue advancing AI capabilities across different domains.
The networking and security landscape continues to evolve rapidly, with recent reports of nation-state actors targeting network infrastructure providers, while global trade discussions impact technology supply chains across multiple sectors.
Future Roadmap and Customer Assurance
HPE executives emphasized that no customers will be left behind during the integration process. “That user interface will become one at some point. But no customer gets left behind,” Neri stated. “They are very excited about that and then they get more faster!”
The company plans to take a “measured approach” to product rationalization to preserve customer experience while converging product roadmaps and eliminating duplicate R&D projects. HPE’s GreenLake hybrid cloud platform is expected to play a key role in the integration, providing a common cloud platform and services foundation for the combined offerings.
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