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HPE2-E64 - Selling HPE SMB Solutions and Services - Dump Information

Vendor : HP
Exam Code : HPE2-E64
Exam Name : Selling HPE SMB Solutions and Services
Questions and Answers : 81 Q & A
Updated On : June 22, 2018
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HPE2-E64 Questions and Answers

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HPE2-E64 Selling HPE SMB Solutions and Services

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HPE2-E64 exam Dumps Source : Selling HPE SMB Solutions and Services

Test Code : HPE2-E64
Test Name : Selling HPE SMB Solutions and Services
Vendor Name : HP
Q&A : 81 Real Questions

Selling HPE SMB Solutions

Avaya Continues Midmarket Push With New Contact center providing | killexams.com Real Questions and Pass4sure dumps

Avaya this week launched a brand new contact middle answer that companions say fills a niche in the UC vendor's regularly becoming midmarket portfolio.

the brand new Avaya IP workplace Contact core solution, in accordance with Avaya, is goal-developed for contact facilities with fewer than one hundred brokers, providing the identical powerful functionality of its typical contact center choices but at a greater low in cost fee element and with sooner deployment instances.

Avaya talked about IP workplace Contact middle base application starts at $2,225.

[Related: Avaya Revamps Growth Incentives, Intros New Partner Specializations For 2014]

Avaya IP office Contact middle represents the latest in a series of strikes made by way of Avaya aimed at broadening its footprint within the SMB and midmarket segments. In October, Avaya introduced a scaled-out edition of IP workplace, its flagship collaboration suite for the midmarket.The new version, IP workplace 9.0, can scale to guide as much as 2,000 clients, or double that of the prior-generation IP workplace 8.1, which Avaya talked about will help each itself and its partners cast a a whole lot wider net when selling into the midmarket.

Nick Kolintzas, vp of Engineering Operations at Carousel Industries, an Exeter, R.I.-based mostly solution company and Avaya accomplice, referred to Avaya IP office Contact center in fact fills a niche in Avaya's broader midmarket portfolio, which, before, failed to consist of a contact center solution.

"There in reality has been a gap," Kolintzas observed, noting that he has viewed a large uptick in his Avaya midmarket enterprise. "we would seem to be backyard Avaya to build third-celebration options to fulfill that need for contact facilities with 100 brokers and beneath, so we are ecstatic about this launch."

invoice Xydias, director of advertising at Integration partners, a Lexington, Mass.-based answer issuer and Avaya companion, agreed that there turned into basically a necessity for Avaya to roll out a midmarket-concentrated contact middle providing.

"From an Avaya companion point of view, you have become the advantages of providing what a huge enterprise would use in a smaller kit," Xydias said. "there's no magic behind it in terms of a secret sauce, however [Avaya] is wise to present the same company performance that a transforming into small- to medium-sized business wants."

the brand new Avaya IP workplace Contact core is protected within the IP office 9.0 platform, which is accessible as both a hardware appliance or as a pure software offering that may run on users' own dedicated servers. It can also be deployed in VMware vSphere 4.x or 5.x environments.

Mark Monday, vice chairman and commonplace manager, Collaboration systems, at Avaya, talked about that as a result of Avaya IP workplace Contact core requires customers to be running IP workplace 9.0, it represents an opportunity for companions to head back to their existing install base and offer upgrade features to 9.0, in addition to the deployment functions around Avaya IP office Contact center.

"a chance exists appropriate away for [partners] to move again to their IP office installation base and, even though they don't seem to be on the latest [9.0] unencumber, improve them and then bring them these new capabilities," Monday mentioned.

Avaya IP office Contact core offers the equal functionality as Avaya's commercial enterprise-concentrated contact core options, together with name recording, analytics and multichannel help, which makes it possible for brokers to interact with valued clientele the usage of both voice, email or chat functionalities.

Avaya IP office Contact middle might be available beginning Feb. 28.

published JAN. 30, 2014


Hewlett Packard commercial enterprise's (HPE) CEO Meg Whitman on Q3 2016 outcomes - income name Transcript | killexams.com Real Questions and Pass4sure dumps

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    Hewlett Packard business business (HPE) Q2 2018 earnings conference name Transcript | killexams.com Real Questions and Pass4sure dumps

    graphic source: The Motley fool.

    Hewlett-Packard business business (NYSE: HPE)Q2 2018 revenue convention CallMay 22, 2018, 5:00 p.m. ET

    good afternoon, each person, and welcome to the 2d quarter Fiscal year 2018 Hewlett-Packard commercial enterprise income convention name. My identify is William and that i should be your convention moderator for modern day name. at this time, all individuals will be in a hear only mode. We may be facilitating a question and answer session towards the end of the conference. should you want information all through the name, please sign a convention expert by pressing the * key adopted via 0. As a reminder, this convention is being recorded for replay purposes.

    i might now want to flip the presentation over to your host for modern name, Mr. Andrew Simanek, Head of Investor family members. Please proceed.

    decent afternoon. i'm Andy Simanek, Head of Investor members of the family for Hewlett-Packard enterprise. i would want to welcome you to our Fiscal 2018 2d quarter earnings convention call with Antonio Neri, HPE's President and Chief govt Officer, and Tim Stonesifer, HPE's government vice chairman and Chief financial Officer.

    earlier than handing the name over to Antonio, let me remind you that this name is being webcast. A replay of the webcast should be made attainable presently after the demand about 365 days. We posted the press unencumber and the slide presentation accompanying cutting-edge salary unlock on our HPE investor family members webpage at traders.hpe.com.

    As all the time, elements of this presentation are forward-searching and are in accordance with our greatest view of the world and our corporations as we see them today. For extra targeted counsel, please say the disclaimers on the revenue substances concerning ahead-searching statements that involve hazards, uncertainties, and assumptions. For a discussion of some of those hazards, uncertainties, and assumptions, please seek advice from HPE's filings with the SEC, together with its most contemporary form 10-k.

    HPE assumes no duty and does not intend to replace this sort of forward-searching statements. We additionally word that the financial tips mentioned on this call displays estimates in keeping with assistance purchasable at present and could differ materially from the amounts eventually mentioned on HPE's quarterly report on kind 10-Q for the fiscal quarter ended April 30th, 2018.

    finally, for financial assistance that has been expressed on a non-GAAP basis, we have provided reconciliations to the related GAAP suggestions on our web page. Please consult with the tables and slide presentation accompanying modern day salary liberate on our web site for particulars.

    With that, let me flip the name over to Antonio.

    Thanks, Andy and first rate afternoon, every person. Thanks for becoming a member of us nowadays. Let me start with the aid of saying that i'm very comfortable with our effective efficiency in Q2. We proceed to execute well throughout all business segments whereas providing on a couple of strategic initiatives. income of $7.5 billion become up 10% from the prior yr period. We skilled solid income increase across every enterprise phase with specific power in intelligent part, high performance compute, storage, hyper converged, and composable infrastructure.

    From a micro standpoint, the IT market continues to be potent. We saw growth in all regions with selected strength in both EMEA and APJ. foreign money become a bigger year over year improvement, offering a 3-element tailwind this quarter. Given our amazing execution held by way of a $0.01, we delivered a non-GAAP EPS of $0.34 above our usual latitude of $0.29 to $$0.33.

    looking at cashflow, our free cashflow turned into -$269 million in Q2. We stay confident in our full yr outlook or about $1 billion in free cashflow and we will deliver extra colour on this in a second.

    eventually, in Q2, we start executing against our $7 billion capital return plan we announced ultimate quarter. We again $1 billion to shareholders in the kind of share repurchases and dividends and we announced that we are elevating our dividend via approximately 50% starting in the latest third quarter.

    searching ahead, on account of our efficiency in Q2 as smartly as the endured advantage from a decrease tax rate, we're elevating our Fiscal year 18 non-GAAP EPS outlook to $1.forty to $1.50 from our up to now offered outlook of $1.35 to $1.45. Tim will give more details in a minute.

    earlier than I turn to the enterprise phase performance, I are looking to offer you an update on our development with HP subsequent. As a reminder, HP next is our companywide initiative to rearchitect HPE to convey on our approach and force a new wave of shareholder cost. or not it's all about simplification, execution and innovation. through this initiative, we're simplifying our operating mannequin and the manner we work. we're streamlining our choices and business strategies and modernizing our IT techniques to improve our execution. we are transferring our investments in innovation toward high boom and higher margin opportunities.

    Over the primary half of this year, we've accomplished some colossal milestones across each and every of these areas. for example, we now have decreased spans and layers between the CEO and the consumer. we've massive streamline of our constitution, empowering the front line to make key additions. And we have dramatically decreased SKUs and structures across our quantity and value segments, which simplifies our operation and makes us more straightforward to work with. stepping into the second half of the year, we are going to be concentrating our efforts on the next section of the initiative, together with building out our no contact sales model and accelerating our IT transformation to more desirable service shoppers and companions.

    The alterations we are making via HP next will now not handiest increase our charge constitution, they will also provide us a big long-term aggressive abilities. i am very pleased with the work we're doing here. whereas the selections we are making are for the long-time period, you already are already beginning to see the benefits in our economic results. In Q2, we delivered an working margin of 8.6%, up 270 foundation facets from remaining yr, due in part to the constructive execution of HP subsequent.

    Turning to our enterprise segments, we saw strong efficiency across the board while continuing to bring innovation in key areas of our platform. In clever aspect phase, revenue grew 17% 12 months over year, with strengths in both items and services. instant LAN salary rebounded as anticipated after a softer Q1 and wire switching remains effective. while, still, a small element of our general product sales, we saw amazing consumer traction IoT techniques, including a significant win with a global economic features enterprise. These effects bode neatly for our future.

    Our consumers tell us they want to take talents of exploring the volume of usable statistics being created at the edge. We heard that. We continued to make investments to build out our intelligent part platform. as an example, in Q2, we reinforced our platform with the acquisition of Cape Networks. The Cape acquisition is the newest steps towards our imaginative and prescient of autonomous infrastructure enabled through artificial intelligence.

    Cape expands Aruba AI vigour networking capabilities with a sense of base community coverage options that improves network efficiency, reduces disruption and tremendously gives IT administration for our consumers. We additionally introduce net perception, a further complementary AI-primarily based analytics, reduces disruption insurance answer for optimizing community efficiency. web Insights makes use of machine gaining knowledge of to invariably computer screen the community and deliver insights in the adventure of anomalies. It additionally recommends how top of the line to optimize the network for present day mobile first and substitute important IoT gadgets.

    searching forward, we see large capabilities in intelligent edge. this will continue to be a key area of funding for us. Turning to Hybrid IT, income turned into $6 billion, up 7% yr over year with solid efficiency throughout all segment. Compute grew 6% year over 12 months and 9% in case you exclude tier one. We saw very amazing increase in excessive-efficiency computing device, composable infrastructure, and hyper convert, offset by the continued decline in our customized commodity server sells to tier one carriers, a company we are moving faraway from.

    Our focal point continues to be on featuring options that carry excessive value differentiation to our customers and to our profitable share for HPE. We continue to prioritize funding in those higher margin, bigger growth segments of the market. for instance, just ultimate week, we introduced the acquisition of Plexxi. Plexxi provides creative utility-defined networking technology, which we plan to combine into each SimpliVity, our hyper converge offering, and Synergy, our composable infrastructure providing. With Plexxi, we will allow shoppers to stream and control their information more promptly and conveniently and additionally tremendously cut back CapEx and OpEx by way of as much as 50% in some circumstances.

    Storage carried out very smartly, up 24% year over 12 months with a nimble acquisition and up 14% organically. All-flash persisted to perform well, transforming into 20% year over year as the market continues to transition and we advantage from our strong place with each 3PAR and Nimble. And earlier this month, we introduced the next technology in storage platform, which is certain to bring the foremost storage efficiency of any all-flash array on the market.

    facts center's working revenue turned into up 2% year over yr with good execution inside our current install base. ultimately, turning to capabilities, HP Pointnext revenue grew 1% yr over yr in Q2. We saw it opt for up in orders in offers that flip from Q1 and strong client traction from our newest providing known as HP GreenLake. HP GreenLake is a suite of paper use options purchasable for top purchasers or masses like huge facts, SAP HANA and side Computing. The providing simplifies the IT experience and offers shoppers option of where workloads should live and the way to flexibly eat them. here's an offering we are able to proceed to expand. seek updates soon.

    And in Q2, we additionally persisted to improve our advisory capabilities, constructing on our acquisition of cloud technical companions with the acquisition of RedPixie. RedPixie is a UK-based cloud consulting enterprise with deep Microsoft Azure competencies, which completely complements CTP's strong AWS relationship. we are excited in regards to the capabilities this acquisition brings to HPE and already seeing them open doorways to new and larger offers.

    HP economic features also performed neatly in the quarter, with profits up 5% 12 months over yr, main with effective growth in our asset administration business. customers are responding well to the actions we are taking, both from an operational and innovation perspective. They agree with in our method, within the effective portfolio of products and services we're building. That self belief will also be considered in some recent wins.

    for example, in Q2, we received an immense excessive-performance compute contend with the us department of energy. this is just the newest instance of the energy of HPE's HPC portfolio and the value it brings to the USA govt in the nation, in foreign competitors over computing energy. We additionally won a new undertaking with Time Warner, the place Aruba become selected for the state of the paintings Hudson Yard Digital workplace assignment in new york metropolis.

    And we announced a brand new supercomputer installing at KU Leuven, a Flemish research tuition, invariably ranked as one of the crucial desirable five most creative universities in the world. we've collaborated with the tuition to improve a installation a new supercomputer chiefly built to enhance AI workloads. It should be used to construct purposes that force scientific breakthroughs, economic boom and innovation in Belgium.

    next month, we can host our annual HPE discover conference in Las Vegas, bringing together heaps of customers and companions from everywhere. we'll be making some enjoyable announcements at activities and that i look ahead to seeing many of you there.

    So, as is said past, i'm very comfortable with our efficiency within the first half of Fiscal yr 18. All of our company segments operate neatly. We made solid development on HP next and proceed to put money into innovation so that you can extra beef up and differentiate our company into the future.

    searching forward to the leisure of the 12 months, as we indicated closing quarter, we expect the growth fee to moderate given tougher competitors, lacking acquisitions, and a smaller foreign money tailwind. while we see a greater difficult second half, we now have acquired extremely good momentum and that i'm assured that we are going to bring on our annual Fiscal 12 months 18 outlook.

    With that, i will be able to turn it over to Tim.

    Tim Stonesifer -- govt vp and Chief financial Officer

    Thanks, Antonio. Our Q2 financial outcomes had been effective, with robust salary increase, significantly greater working margins and superior than expected income. total salary for the quarter become $7.5 billion, up 10% year over year and 6% in regular foreign money. Topline efficiency turned into pushed by way of decent market dynamics, strong execution, and both favorable year over yr compares and alternate fees.

    From a portfolio mix viewpoint, we're seeing solid boom in our cost choices and our core extent enterprise is growing to be stronger than expected. From a macro perspective, IT spending remains somewhat match with strong customer demand across all agencies and geographies. The pricing environment remains aggressive however has continued to be more motive and passing via expanded commodities cost.

    DRAM cost raises have additionally started to flatten. foreign money drove a 330-basis aspect tailwind to revenue yr over 12 months. With that noted, costs have moved a bit of unfavorably in the ultimate month, so forex usually are not as significant of a advantage within the 2d half if these charges cling. We now predict nearer to a 2-aspect improvement to income in Fiscal yr 18.

    locally HPE's performance in the Americas proceed to be solid, starting to be three% in regular foreign money. many of the growth got here from the us, Canada, and Brazil with power in storage and the clever edge. revenue boom in Europe continue to be mighty, up 9% in constant foreign money, with double-digit boom in UK, France, and Italy.

    efficiency in EMEA became amazing throughout all enterprise units with double-digit growth in compute, storage, in Aruba products and functions. Asia Pacific grew 9% in regular forex with effective in China, Australia, and Singapore.

    Turning to margins, the gross margin of 30.4% was up ninety basis elements 12 months over 12 months and 200 basis aspects sequentially. Non-GAAP working income of eight.6% changed into up 270 foundation aspects yr over 12 months and ninety groundwork aspects sequentially. We proceed to execute neatly this quarter with HPE next reductions using lots of the improvement. DRAM changed into additionally much less of a force element as compared to prior quarters and we continued to gain traction on the pricing front.

    Going ahead, margin improvement may be driven essentially by way of providing the can charge rate reductions from HPE next and delivering our cost portfolio choices, which have higher margins. Non-GAAP diluted web revenue per share of $0.34 is only above the excessive-conclusion of our previous outlook of $0.29 to $0.33 as a result of strong operational performance and a tax cost improvement of approximately a penny.

    The Q2 non-GAAP tax cost become 9.6%, which is barely below our previously offered tax latitude of 11% to fifteen% because of a number of one-time reductions in non-US tax cost. For the whole yr, we now expect our tax rate to be on the decrease conclusion of the 11% to 15% range, but we are nonetheless working through many variables associated with tax reform. GAAP diluted internet profits per share changed into $0.49 above our up to now offered outlook latitude of $0.10 to $0.14, basically due to releasing reserves we now have been protecting associated with HPQ tax hazards that have been part of our separation settlement, which has now been settled.

    Now, turning to the company devices -- in hybrid IT, profits turned into up 7% yr over yr and four% in constant foreign money. salary efficiency changed into amazing and balanced across all businesses in all regions. working margins have been 10.3%, up 220 foundation facets year over 12 months and 70 groundwork points sequentially and in accordance with our expectations.

    Compute earnings changed into up 6% yr over year and 9% aside from tier one. We proceed to look better AUPs driven by using passing via greater DRAM fees, increasing our Gen10 mix and delivering richer tax configurations.

    We noticed persisted momentum in our value bass with high-performance compute transforming into over 20%, hyper converge up triple digits, and Synergy gaining expanding client traction. As mentioned previous, profits boom in our volume company became larger than deliberate, driven by way of potent increase in core rack.

    Storage revenue became up 24% yr over 12 months with persevered momentum in the organic business, up 14% year over year. We saw robust double digit increase and insurance storage pushed with the aid of nimble and big statistics storage that has turn into a meaningful a part of the portfolio. All-flash arrays grew 20% 12 months over year. while the normal storage market continues to be competitive, we like our existing position and predict to take 50 foundation facets of share this quarter, which should be the tenth time in the closing 12 quarters where we now have received and maintained share.

    statistics center networking profits was up 2% with good execution primarily from our installed base in the Americas. HPE Pointnext revenue was up 1% yr over yr with operational increase for the seventh consecutive quarter. universal orders grew 1% with even more suitable boom and operational services, which turned into pushed by our new HPE GreenLake bendy capability offerings. provider intensity is still effective, but attached orders continue to be below drive from decrease hardware increase and richer hardware configurations.

    in the clever side, earnings changed into up 17% year over year and 14% in consistent currency. operating margins of 6.5% have been up 360 foundation elements sequentially due to the operating leverage from greater earnings but had been down 110 basis points yr over yr because of large investments in earnings and R&D. Aligned to our approach of pivoting to the clever facet, we have now been making huge go to market and R&D investments which have given us the leadership place in this high-boom market probability.

    Aruba product grew 18% with persisted amazing growth and campus switching and a rebound in wireless LAN, despite hard compares in the prior yr. now we have additionally started to look respectable traction in our part compute enterprise. Aruba features changed into up 10% on put in base boom due to strong attach of our software platform like ClearPass and Airwave.

    HPE fiscal functions profits grew 5% 12 months over yr and 1% in constant currency, pushed by amazing residual income and boom in our direct business that became a little bit offset by means of reduce working unencumber combine. volume became flat as increase in our direct company become offset with the aid of the drive in our indirect company. operating profit declined ninety groundwork elements yr over yr to 7.9% because of one-time objects.

    Now, turning to cashflow. Free cashflow changed into -$269 million in Q2. The money conversion cycle became in keeping with expectations and lowered sequentially by using someday to -22 days. both stock and payables were increased within the quarter as a result of strategic positioning of key commodities and somewhat higher pricing. We additionally entered the quarter with an working enterprise web cash stability of 3.5%. searching forward, we're nonetheless heading in the right direction to achieve our free cashflow outlook of approximately $1 billion in Fiscal yr 18as the 2d half merits from just a few gadgets.

    First, we are expecting cash revenue to ramp, aligned with average seasonality and the charge rate reductions from HPE subsequent. 2d, working capital may be a supply of cash versus using cash in the first half with the money conversion cycle improving to the negative-high 20-day range, similar to our q4 exit latitude. closing, we've fewer one-time funds and predict incremental real estate income toward the end of the 12 months.

    moving to capital allocation, as part of our $7 billion capital return plan via Fiscal year 19, which we announced in Q1, we back $1 billion to shareholders all over the quarter. This comprises $907 million of share repurchases and $116 million of dividend payments. As up to now communicated, we raised our quarterly dividend by 50%, which should be payable in July.

    We additionally announced today that we are going to be redeeming $1.6 billion of our bounds maturing in October on the end of June. The bond redemption is in keeping with our capital allocation strategy, which includes keeping an investment grade credit rating. Going ahead, we intend to run the working enterprise with web money impartial to high-quality and we will retain economic flexibility via barring potential as essential.

    Now turning to our outlook, according to our approach in Q1, we're expanding our non-GAAP earnings outlook for Fiscal year 18 by way of $0.05, because of our operational efficiency in Q2 and a positive tax price that we now predict to be on the low end of our eleven% to 15% suggestions for the 12 months. subsequently, we are expecting Fiscal yr 18 non-GAAP diluted net salary per share of $1.forty to $1.50. We expect our Fiscal year 18 GAAP diluted web profits per share to be $1.70 to $1.80.

    For Q3 18, we are expecting non-GAAP diluted web earnings per share of $0.35 to $0.39 and we expect GAAP diluted web profits per share to be $0.19 to $0.23. So, typical, i'm completely happy with the performance within the quarter and i'm looking forward to focusing on providing our full-yr commitments.

    earlier than we open up the call for questions, as Antonio outlined, I simply desired to remind everybody that we have our IR Summit arising in June at our find customer event in Las Vegas and that i hope lots of you can be able to join us.

    Now, let's open it up for questions.

    Questions and answers:

    Operator

    thank you. And we are able to now begin the query and answer session. To ask a question, you may also press * after which 1 on your touchstone telephone. when you are the use of a speakerphone, please opt for up your handset earlier than pressing the keys. To withdraw your query, please press * then 2. We do additionally request that you simply limit your self to at least one query and a single follow-up query.

    And our first questioner these days should be Sherri Scriber with Deutshce bank. Please go ahead.

    Sherri Scribner -- Deutsche bank -- Analyst

    thanks. I feel Antonio and Tim, you both mentioned that DRAM cost increases have begun to flatten. are you able to remind us how you're feeling about DRAM and NAN as we flow into the 2d half of the 12 months I suppose once we spoke of it final quarter, it truly is going to be somewhat of a force on earnings. How are you pondering that as we flow into the 2nd half?

    Antonio Neri -- President and Chief govt Officer

    certain. Thanks, Sherri. we have still seen a flattening of the DRAM fees. We still see what I name nominal, low single-digit charge raises. we are able to move those alongside for two causes. One is more advantageous execution in our go to market, more disciplined method and second, our competitors have become greater rational about pricing in standard. it be going to be a extremely reasonably priced increase and we feel confident to flow those alongside.

    The AUPs, without doubt, continue to be expanded for 2 reasons. One is the DRAM, as we talked before. Two is the richer configurations -- certainly on the compute facet, the compute side are using a wealthy configuration of reminiscence, without doubt flash, NAN when it comes to storage. it is why we see the expanded AUPs. these aren't going to change every time quickly, additionally as a result of shoppers are trying to attain greater efficiencies in their data centers, in particular to deploy the private cloud. The other one is a few of these workloads demand that degree of configuration, in particular as you stream to AI and facts analytics.

    Sherri Scribner -- Deutsche bank -- Analyst

    okay. terrific. Then just searching at the storage business, it looks like you guys have basically recovered in that business versus some issues you had ultimate yr. How are you feeling about the storage company as we flow into the 2d half? Do you suppose these revenue boom degrees are sustainable or do you predict them to come returned in a bit of? thanks.

    Antonio Neri -- President and Chief govt Officer

    sure. Storage performed very smartly, up 24% yr over yr with inclusion of Nimble and 14% organically, which is to your point, we in fact done way superior than ultimate yr. final year, we had some execution challenges, exceptionally in North the united states. We believe we've addressed these concerns and once I consider about the chance available in the market, definitely all flash proceed to be a big possibility. This quarter we grew 20%. we are basically enthusiastic about our portfolio.

    The aggregate of Nimble and 3Par with the simplicity of our cost proposition, with cloud capabilities constructed into it and most significantly with our AI applied sciences developed into it, each in Nimble and 3Par because now we scaled that answer to 3Par truly is some thing this is resonated with valued clientele. So, as I look forward, we expect to see strong organic growth in storage, however let's remind ourselves next quarter we're going to have the lapping of the Nimble acquisition to the portfolio. I suppose the boom price might be a little bit greater moderated, however we're very confident about our ability to execute with this portfolio because we've genuine price differentiation.

    Sherri Scribner -- Deutsche bank -- Analyst

    thanks.

    Andrew Simanek -- Head of Investor family members 

    thank you, Sherri. can you have the subsequent question, please.

    Operator

    And our next question can be Katie Huberty with Morgan Stanley. Please go forward.

    Katie Huberty -- Morgan Stanley -- Managing Director

    thanks. respectable afternoon. you've got beat profits and EPS two quarters in a row. the vast majority of the $0.05 full-year counsel is tax related. can you just comment on why you are now not assuming potent operational developments proceed for the the rest of the year? simply as a related observe-up to that, if you talk about complicated compares in the back half of the fiscal yr and lapping acquisition, does that conclusion in a company that is not transforming into topline or do you feel the topline can proceed to grow in the returned half just at reduce costs?

    Tim Stonesifer -- executive vice president and Chief fiscal Officer

    Yeah. So, so far as the $0.05 goes, i might say $0.02 of the $0.05 was operational. once again, we proceed to function very smartly, above all in the extent piece of the portfolio. this is growing sooner than we had anticipated. so far as why we are not passing greater via. once more, we now have a rather a bit of of execution left within the 2nd half. We nevertheless have six months to head and we think or not it's just prudent to pass alongside the operational efficiency we're seeing after which we're making an attempt to be as clear as we will on the tax front as we're still working via all those adjustments.

    as far as the growth goes, yeah, I believe we will proceed to grow. in case you appear at the 10% boom that we had in Q2, i'd say about three.5 facets of that become tailwind from FX. We had a few facets of tailwind from the compares with Nimble and SimpliVity after which we had four.5 aspects of execution. I consider or not it's truly a mix because I do consider our go to market movement is working improved. I do feel our geo-mannequin we pivoted to this year is working very smartly, however we also have more suitable markets. we now have robust consumer demand. we've a higher pricing atmosphere. So, that performs into it as neatly.

    As I seem to be forward into the 2d half, costs have moved a little bit unfavorably for us. If these charges hold, we would get less of a tailwind. We definitely lose the favorable compares. The other element i'd make out is we're doing about half of the tier one business within the second half of the yr that we did versus the first half. that is about 2.5 points of headwind, no margin impact, after which we've tougher compares ordinary. I believe relocating forward, we can certainly grow, nevertheless it's surely now not going to be at that 10% expense given the reason they simply laid out.

    Antonio Neri -- President and Chief government Officer

    Antonio, I are looking to add a few things here -- one is if you go back to where we guided, we mentioned zero to 1% growth. it's glaring we're going to develop quicker than that for the year. I consider this is one enviornment. The second is we're very, very confident in our portfolio. I consider as we continue to make contributions from extent to cost, we can see also an improvement there since the increase areas we see are hyper-converged in areas like private cloud, excessive-performance compute and so on. We agree with this enterprise completely can grow and truly this yr can be above the assistance we provide you with for the entire yr.

    Katie Huberty -- Morgan Stanley -- Managing Director

    thank you.

    Andrew Simanek -- Head of Investor family members 

    thanks, Katie. do we go to the next question, please?

    Operator

    Our subsequent questioner these days should be Tony Sacconaghi with Bernstein. Please go forward.

    Toni Sacconaghi -- Bernstein -- Analyst

    thanks. You provided an update on HPE next and a few of the accomplishments to this point. I feel the goal was to try and convey $250 million in internet discounts this yr and $800 million over the subsequent three years. could you supply an replace on the place you believe you're when it comes to the reductions capture cost up to now this year and whether we should nonetheless be thinking a few $250 million reductions for the yr? I actually have a follow up, please.

    Antonio Neri -- President and Chief govt Officer

    certain, Toni, thanks for the query. we are assured we are on target to deliver $250 million for the years. Now, simply as a reminder, HP subsequent is the initiative I launched to rearchitect the business to bring on our imaginative and prescient or approach. Our aim with this was all about simplification, innovation, and execution. we've made respectable progress on many fronts.

    One is the working model simplification within the go to market is paying off in terms of now not just the rate reductions however really enhance the execution. 2nd we have decreased already somewhat tremendously a couple of structures and alternate options which interprets in decrease amounts of capabilities to our shoppers and partners, which allows us to improved plan and execute in our deliver chain.

    Then third is the way of life of the business as smartly. So, from my standpoint, we're heading in the right direction with what we talked about we will do. To me, this is going to be the aggressive competencies that Hewlett-Packard business may have going forward. For me, this is not just a method to come shareholder cost, however in reality to improve the way we execute our business on daily basis. The fact is the market is moving actually speedy. They should react to these opportunities quickly. Have a lean, suggest, end to conclusion price chain is completely fundamental.

    So, now, we're going to enter the 2d part of this, which is the transformation in the strategies in IT modernization, which in reality will supply us the incremental step ahead on executing even more desirable and extra comfortably in entrance of the market possibility. Tim, do you wish to add anything else?

    Tim Stonesifer -- government vp and Chief economic Officer

    No, I think you nailed it.

    Toni Sacconaghi -- Bernstein -- Analyst

    So, the observe-up -- it still seems like if we consider Pointnext has about 30% operating margins, which is traditionally the place or not it's been, it nevertheless seems like working margins on servers, storage, and the facts middle networking is in the 1% to 2% latitude right now. That likely means that server margins are terrible nevertheless.

    How may still traders simply think about what a normalized margin for these groups are or has the total server market moved to a market the place we is just not considering it that approach and that we're truly a blended margin between assist and servers are really fitting the car to promoting excessive margin aid and we will not be thinking about discreet profitability for each and every of those.

    Tim Stonesifer -- executive vice president and Chief financial Officer

    Thanks for the question, Toni. i would say this -- I think your math is relevant. you're in the low single-digit latitude for the hardware companies. i am now not truly going to comment about the place these are going, however i'll give you color. if you examine our overall margin of 8.6%, as we now have pointed out all year, we do feel that continues to increase over the path of the yr and that's the reason definitely a mix of the expanded charge rate reductions from HPE subsequent. it is a combination of the acquisitions as they develop into more and more accretive as continue to grow those organizations and appropriate measurement these can charge envelopes.

    Then to Antonio's aspect, as we proceed to pivot toward the cost portion of our portfolio, where we've higher margins and higher connected, that surely gives us some fee carry as well. we might expect these to continue during the path of a year on a normalized, if you will, groundwork, two or three years down the highway, I consider a pair calls in the past, there's a pair hundred features of development and that i still consider it's true as a result of while we exit '18, we're still going to have HPE subsequent rate reductions and we will continue to pivot towards the cost element of the portfolio.

    Antonio Neri -- President and Chief government Officer

    The other element i might add, Toni, in case you look at our Q2 efficiency, we more desirable our Hybrid IT margins by 20 foundation facets in that company. and clearly, like I spoke of earlier than, the Russianization of structures and options give us better profitability on the hardware aspect.

    it's obviously that without doubt a big chunk of our profitability comes from features, however let's remind ourselves that profitability and repair business is not only attached. it's what we name functions led opportunities and we pivot that portfolio quite gigantic in the last two to 3 years and we see now the momentum and the manner purchasers wish to consume a greater subscription-primarily based model.

    it's why issues like HP GreenLake as well. however to Tim's factor, we will proceed to pressure that rigor and discipline and our cost constitution and ultimately the more convenient we innovate in our portfolio, the more straightforward it is to move sell it to enhance the pull via for services and as neatly for the rest of the HP portfolio.

    Andrew Simanek -- Head of Investor members of the family 

    thank you, Toni. can we go to the next question, please?

    Operator

    The subsequent query will be Simon Leopold with Raymond James. Please go forward.

    Victor Chu -- Raymond James -- Analyst

    hi there, guys. here's Victor Chu in for Simon Leopold. i needed to ask about free cashflow. It seems like FCS appears like it is going to have rather a pointy step up in the again half of the 12 months to get to your $1 billion target. i used to be hoping you can supply us extra color round that, what elements of working capital are you expecting to power the cash conversion in the second half of the yr.

    Tim Stonesifer -- government vice chairman and Chief economic Officer

    bound. We're nonetheless confident with $1 billion for Fiscal yr 18. Q2 came in at -$269 million, which to be honest with you, become lighter than we expected. I feel on the ultimate name, I observed Q2 can be flattish. We had an improved mixture of one-time payments and damaging actions that changed into rated to the VAT taxes. So, these are greater timing than anything.

    As you comprehend in this enterprise, free cashflow is terribly seasonal. if you seem at the ultimate couple of years, we customarily have poor free cashflow within the first half of the yr after which we generate a big volume in the 2d half of the yr and i don't feel 2018 goes to be any diverse.

    it be definitely pushed by means of 4 issues. first off, that you could seem at the revenue ramp. that's mirrored in our EPS e book. it really is a combination of HPE next mark downs as well as typically seasonality so if you want to without doubt generate more free cash flow. From working capital standpoint, we basically had a money utilization in the first half of the 12 months, we're going to generate profit the 2nd half of the year I consider the indicator to examine there's our money conversion cycle. As we observed in the organized remarks, we might are expecting that to conclusion within the terrible excessive-20 day latitude. We anticipated that to be very per where we exited this fall of 17 and that generates a big amount of cash.

    different belongings and liabilities -- we had some unfavourability in the first half, i would predict that to come returned in the second half. Nothing has structurally modified when you consider about the stability sheet. i could go again to the VAT examples we may still be amassing on those receivables within the 2d half of the year.

    Then lastly, we're going to have fewer one time funds. in case you seem at the SAM presentation that we laid out, we had about $1.1 billion of one-time money funds, roughly $800 million of that has been sorted within the first half of the 12 months, in order that offers us a tailwind in the returned half of the 12 months and then we can have, to your point, we are able to have some true estate features in the 2nd half of the yr. there may be lots of moving parts and free cashflow. that's why it's very complex to forecast on a quarter basis, however given these comments, we feel basically first rate concerning the greenbacks for Fiscal year 18.

    Victor Chu -- Raymond James -- Analyst

    thanks. this is very helpful.

    Andrew Simanek -- Head of Investor relations 

    thank you, Simon. do we go to the subsequent question, please?

    Operator

    Our next questioner today could be Shannon pass with cross research.

    Shannon pass -- go analysis -- Analyst

    My question is with reference to AI -- i am simply curious the way you see one of the crucial new choices you may have launched and some of the brand new acquisitions fitting into this, above all i'm curious as to how you're going to monetize them as a result of everybody discuss AI and what it's going to do to the industry, however i'm wondering the way it helps you from a aggressive standpoint over time. and i have a observe up.

    Antonio Neri -- President and Chief govt Officer

    sure. thank you for the question. i'm basically very excited about AI. We see this every day. I spend 50% speakme to purchasers. it be kind of pleasing as a result of what they're hunting for is to monetize that information quicker and attempting to keep in mind they should be doing with that facts from the business point of view. So, AI gives you that car to accelerate effects from the records standpoint. We already have very amazing offerings each in reminiscence solutions -- think about our Superdome X and as well at HP Apollo 6500, which is an AI-designed platform.

    How we monetize is very standard. We supply features upfront, which is really the advisory potential, a way to enforce AI in their atmosphere and quantity two, how we design and implement the right answer for them and we have already got many, many structures with AI embedded in terms of it in terms of solution construction kits their information scientist using whatever tools they need, even if or not it's cloud statistics or some thing it's.

    So, this is a fine opportunity for us and also, we are the usage of AI inside our portfolio. So, we talk in regards to the way forward for hybrid IT being adaptive. we are providing AI technologies inside our personal software defined infrastructure. An example that, certainly, is info web site, but you're going to peer further and further of that embedded on the edge in addition to our cloud orchestration capabilities.

    Shannon move -- pass analysis -- Analyst

    Tim, can you talk a little about how we should still suppose about the model changing as you movement to flexible capability or bendy consumption models over time. We sat in application most likely to SaaS and now we're seeing these two devices that service over time. Thanks.

    Antonio Neri -- President and Chief government Officer

    I suppose you are asking the question from the business model viewpoint or the monetary viewpoint? If it's financial, i will be able to ask Tim right here to comment. What we see is consumers like the capability to eat on prem in a utility-based mostly mannequin. What that capability is that they need a full built-in answer with the hardware or infrastructure they need, with the application or functions to run it the most efficient approach. in many methods, we focus on how we carry that public cloud journey and economics on prem and that journey includes the consumption-based mostly mannequin. reckoning on the size, we will deliver the shoppers a extremely aggressive answer on premises. it's not just infrastructure as a carrier however also result as a provider. think about again half recovery as a service, SAP HANA as a carrier and so on. We already have these purchasable and we see a big activity and critical uptick in carrier.

    From the economic aspect, we've crafted what I feel is a very robust and simple options for our valued clientele leveraging our monetary portfolio which deliver that embedded financing but is a services-led organization and the way we've finally handled them isn't any distinctive than any subscription-based mostly model. Tim, possibly you need to touch upon that.

    Tim Stonesifer -- govt vp and Chief financial Officer

    Over time, it will enhance our habitual income and may also increase our profitability.

    Andrew Simanek -- Head of Investor members of the family 

    thank you, Shannon. will we flow on to the next query?

    Operator

    The subsequent questioner might be Jim Suva with Citigroup. Please go ahead.

    Jim Suva -- Citigroup -- Analyst

    thanks very plenty and decent job on the consequences and execution. I even have a question on the Hybrid IT reporting section, mainly the Pointnext or the carrier revenues. If I do the mathematics appropriately, it really is up about 1% 12 months over yr with forex down 1% 12 months over 12 months. Why would revenues for Pointnext be down year over year when overall your business effects are so powerful or how can we bridge the hole between those ameliorations?

    Tim Stonesifer -- government vice president and Chief fiscal Officer

    I suppose it truly is a factor of the contracts rolling off and given the undeniable fact that a lot of these are three-yr contracts, you have got some timing from a translation and results perspective.

    Jim Suva -- Citigroup -- Analyst

    ok. So, should we predict Pointnext to be challenged with the timing of context rolling of?

    Antonio Neri -- President and Chief government Officer

    No. after we e-book the orders, we ebook it as whatever thing the currency became on the time, but at the same time, we are reserving our orders with what I name greater favorable currency. The mixture of here's going to dictate what the outcome is but we're nonetheless confident that we will proceed to drive the growth during this portfolio driven by way of these new choices. it really is why we're very keen to continue to power that consumption-based model that Shannon asked the query for as a result of that has grown significantly sooner than what we are poting here as w gap section.

    Tim Stonesifer -- executive vice president and Chief monetary Officer

    i might say yet another factor to examine is services intensity. So, carrier intensity became up 35% in Q2 so we proceed to have greater attached greenbacks per units.

    Jim Suva -- Citigroup -- Analyst

    thanks so a lot for the clarification and detail.

    Andrew Simanek -- Head of Investor relations 

    do we circulate on to the subsequent question please?

    Operator

    The subsequent question could be Steve Milunovich with UBS. Please go ahead.

    Steve Milunovich -- UBS -- Managing Director

    thank you. first of all, on the tax cost for Fiscal 19 I think you observed the tax rate would go up this 12 months. We had been thinking probably 18% however does that come down a couple features now?

    Tim Stonesifer -- govt vice chairman and Chief monetary Officer

    we'll give you guys extra colour at SAM because we're nevertheless working through the influence in Fiscal year 18. To your factor, the last yr we guided, we observed 16% to 20%, so you're right within the center there. i'm now not going to provide the counsel right here for 19 however we will provide you with full transparency in October at SAM.

    Steve Milunovich -- UBS -- Managing Director

    i'm wondering if you can complicated extra to your on the traits you are seeing? Is Azure stack out there and some extent? How's your Microsoft relationship? I believe you really want new servers if an account were to use Azure with yoyr items and talk with your software offerings. I consider you have got some fairly respectable orchestration utility.

    Antonio Neri -- President and Chief executive Officer

    certain. Thanks for the question. We see respectable traction within the inner most cloud section. We offer a multi-cloud type of solution. without doubt, we've the VMware. we've now a very effective integration between the VMware stack and our HP Synergy. We see enormous traction of Synergy with VMware in specific segments like the fiscal sector, where they need gigantic deployments of enormous VM farms that eventually they could control a big volume of workload.

    The different one is Azure Stack. it be nonetheless a bit bit early, but we see first rate promise. we have carried out a little bit distinctive implementation on that as a result of we now have stronger engineering integration and we already provide various kinds of answer, no matter if it's HP reliant or what is now with availability of HP SimpliVity as neatly with a hyper-based solution.

    And incidentally, with our providing of HP OneSphere, we also supply OpenStack and Coupa ambiance for all these shoppers who want to completely raid deployment of containers. within the conclusion, we have platform called HP OneView that manages any classification of infrastructure, no matter if it is a standard tier three approach, converge, hyper converge and composable and now with the inclusion of Plexxi, which we introduced that remaining week, we're really now virtualizing the network thoroughly integrated natively.

    and then with HP OneSphere, we supply it via cloud in a hybrid IT ambiance where you deployed a container or even an open supply classification of answer. We see the traction across them and we wrap all of that with our consumption based mannequin. We focus on HP GreenLake and that is the reason where the valued clientele are very interested to work with us.

    Andrew Simanek -- Head of Investor relations 

    Thanks, Steve. can we go to the subsequent question, please?

    Operator

    Our subsequent question with be Amanda Bruja with Loop Capital. Please go ahead.

    Ananda Bruja -- Loop Capital -- Analyst

    Thanks for taking the question. Two if I could and that i'll ask them on the same time -- the first is on the topic of long-term aggressive advantages, it makes experience how it improves your approaches and your get to market, may you speak specifically to what you see as probably the most competitive benefits relative to the industry and your competitors. The second question, I believe there become a remark, the 2d half will be greater difficult. i was questioning if you may tease out what probably the most challenges you see in the second half. Thanks.

    Antonio Neri -- President and Chief govt Officer

    bound. As I observed before, we actually believe. I accept as true with that HP next will be a aggressive differentiator for us as a result of one of the drivers we see in this business is the potential to give an integrative adventure. With the difficult work we have completed over the closing six and a half years and position of Hewlett-Packard commercial enterprise clearly in this area the place we will compete and win, we find a way to convey a whole built-in new experience.

    it's the opportunity of a lifetime. i've been at the business for 23 years. sadly, i do know every device, each procedure for decent or dangerous and i know we have giant upside, no longer simplest to increase our cost structure, however in fact increase our boom via better execution once we now have this built-in adventure.

    Let me provide an example of that. Now we will have a simple, tons enhanced integrated journey with configurations. we will have a low touch mannequin for extra of the transactional aspect, specially as you consider about the midmarket and SMB. we'll have a streamline platform for the provide chain, which truly improves now not simply quote to cash, however the finance aspect of the execution, but all of this interprets into cost for our customers and for our shareholders as a result of undoubtedly, we're allowed to make every thing we are able to in that execution.

    From the increase standpoint, once more, like I observed before, we are confident we are able to beat our information we supply as them, which become zero to 1%, however surely we'll have more difficult compares. The currency isn't going to be as strong as its tailwind. we have the acquisition now in the full run cost. i am very assured in our organic growth because our portfolio is very, very effective. it's going to come right down to how neatly we're going to execute and we're executing improved and where we see the possibility in terms of balancing increase with the profitability which we just accelerated once again on EPS.

    Ananda Bruja -- Loop Capital -- Analyst

    each of those are very helpful. Thanks so plenty.

    Andrew Simanek -- Head of Investor members of the family 

    I believe we've time for an additional question.

    Operator

    That question can be from Aaron Rakers with Wells Fargo. Please go forward.

    Aaron Rakers -- Wells Fargo -- Analyst

    thank you. I do have a follow-up as smartly. I are looking to go returned to Tony's earlier development with regard to your discounts you are expecting to generate from HP subsequent. i'm curious how plenty have you realized of the $250 million to date within the first half of the yr and in case you look at some of the progress of belongings you're going to execute on, going to one ERP equipment versus ten, four hundred sales comp plans down to 25, and so on., i'm just curious can you assist us understand what has been accomplished and what you're planning to execute on in the 2nd half. Then I even have a comply with-up.

    Tim Stonesifer -- government vice president and Chief financial Officer

    i'll reply the fiscal part then flip it to Fabio. if you appear on the $250 million, i would say that a 3rd of that's in the first half and two-thirds may be coming within the back-half of the year. As Antonio outlined, we're on course to bring that.

    Antonio Neri -- President and Chief government Officer

    when it comes to what has been achieved, we already initiated the platform simplification. We talked about 26 platforms down to seven on the volume side and 27 all the way down to 9, so we're neatly on on our means. We don't seem to be absolutely accomplished on that but neatly on our manner. in terms of the manufacturing facet, we haven't yet initiated the full transition.

    So, within the back half of this yr, particularly within the latter a part of the 12 months, we will put in force the new SAP instance and with that groundwork with a standard statistics grasp, we'll flow to the simplification of our give chain in number of notes, which the monstrous majority is going to take place in 2019.

    in terms of our core plans, we completed a good deal of that, we done 2019 in terms of sales plans, which is also some of the cause we are executing more advantageous because you're telling the dealers precisely the place to center of attention and the way they're going to receives a commission and that's the reason a motivator in many methods and that's why we've improved execution.

    Very confident the place we're these days, but there's nonetheless a significant volume of work to be carried out. it's a journey to be laid out for the next three years and tons of this will be stylish on the IT transformation riding, exceptionally on the low touch, no touch, which goes to are available the latter a part of 2018 and in order to enrich our execution or go to market in the latter part as we proceed to pivot from volume to extent increase.

    Aaron Rakers -- Wells Fargo -- Analyst

    this is very helpful and maybe this is just a little tied to the comply with up -- as I seem on the cash conversion cycle, one aspect that stands out is you had forty% yr over yr in your inventory carried on the balance sheet on this last quarter. Is there strategic purchases being made in the stock are you maintaining greater than given these initiatives or what's in fact riding that increase on the inventory aspect?

    Tim Stonesifer -- executive vp and Chief fiscal Officer

    it be a bit bit of both. We had been carrying some excess buffer inventory to make sure we had satisfactory stock to fulfill client demand and then you ought to remember we have multiplied ERAM costs as neatly. So, that has enormous impact.

    Aaron Rakers -- Wells Fargo -- Analyst

    thank you very a lot.

    Andrew Simanek -- Head of Investor family members 

    thank you, Aaron. Thanks every person for becoming a member of us these days. With that, we will shut out the call.

    Operator

    ladies and gents, this will conclude our demand today. thank you for attending.

    period: fifty six minutes

    call members:

    Andrew Simanek -- Head of Investor family members 

    Antonio Neri -- President and Chief executive Officer

    Tim Stonesifer -- govt vp and Chief financial Officer

    Sherri Scribner -- Deutsche bank -- Analyst

    Katie Huberty -- Morgan Stanley -- Managing Director

    Toni Sacconaghi -- Bernstein -- Analyst

    Victor Chu -- Raymond James -- Analyst

    Shannon go -- pass analysis -- Analyst

    Jim Suva -- Citigroup -- Analyst

    Steve Milunovich -- UBS -- Managing Director

    Ananda Bruja -- Loop Capital -- Analyst

    Aaron Rakers -- Wells Fargo -- Analyst

    extra HPE analysis

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    HPE2-E64 Selling HPE SMB Solutions and Services

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    Test Code : HPE2-E64
    Test Name : Selling HPE SMB Solutions and Services
    Vendor Name : HP
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