Hewlett Packard Enterprises HPE is betting that 5G will change the landscape for technology, and its putting its money where its mouth is.
Shares of the stock popped after its first earnings report surpassed expectations and management slated a strong 2019 on Thursday evening.
A large degree of this bullishness on behalf of executives is related to the company's efforts in Intelligent Edge, its high profile cloud-focused program.
"We did announce actually prior to my arrival, a $4 billion investment on the Intelligent Edge," CFO Tarek Robbiati told Real money's Kevin Curran. "The vast majority of the investment goes towards building a robust portfolio of products and also the software platform that governs and manages all the platforms, with every respect for the security, to a network performance, to data mining, artificial intelligence, and so on. This is what we call the Edge Software Platform."
The area was a highlight during the company's earnings call, along with its GreenLake Hybrid Cloud, being touted as a key indicator of the company's future beyond its historical presence in data storage and hardware. The futuristic angle was intensified with the talk of 5G integration.
"The Intelligent Edge is absolutely an area that we continue to invest," CEO Antonio Neri commented. "Think about the connectivity aspect of this as 5G comes online. There is an opportunity to integrate 5G in through the overall control plane and data plane that we provide customers with our Aruba [wireless network] platforms. Think about the cloud computing at the edge."
"5G is a great opportunity for HPE as a whole, not just Aruba," Robbiati added. It's tremendous opportunity, particularly in the United States."
He explained that HPE can be the key piece in the equation that can facilitate the shift to this new generation of technology through storage and cloud offerings for major telecoms companies specifically.
To hear Robbiati's take on 5G and HPE's future, check out the TheStreet's podcast.