The company's strategy focuses on delivering a global edge-to-cloud platform as-a-service, emphasizing the HPE GreenLake platform. This platform aims to accelerate customer outcomes by unlocking data value.

Effective November 1, 2023, HPE established a new Hybrid Cloud segment, including historical Storage, HPE GreenLake Flex Solutions, Private Cloud, and Software. This realignment aims to align financial reporting with the current business structure.

HPE completed several acquisitions, including Athonet and OpsRamp, to expand its technology portfolio and capabilities. These acquisitions are intended to strengthen HPE's offerings in areas like cellular network technology and IT operations management.

Mild improvements to industry-wide supply constraints have helped to ease certain supply chain challenges, including increased supply availability and lower material and logistics costs.

Transformation costs decreased due to lower charges incurred as the Cost Optimization and Prioritization Plan and the HPE Next Plan approach completion.

The management team, led by Antonio Neri, has a proven track record in developing transformative business models and driving sustained growth.

The company acknowledges the risk of failing to successfully execute its go-to-market strategy, including the ongoing transition to an aaS consumption-based business model, which could negatively impact business, operating results, and financial performance.

The company depends on third-party suppliers, and failure to manage these relationships properly could harm financial results. This includes risks related to component shortages, excess supply, and contractual terms.

The company acknowledges the potential for system security risks, data protection incidents, and cyberattacks to disrupt internal operations or IT services provided to customers, which could reduce revenue, increase expenses, and damage reputation.

HPE's edge-to-cloud strategy is designed to enable customers to securely access, control, and maximize the value of their workloads and data assets, which distinguishes HPE from competitors.

HPE combines software-defined infrastructure and services capabilities to provide a strong portfolio of enterprise solutions, connecting customer data from edge to cloud.

The company faces strong competition in all areas of its business, including from major corporations and new firms. Product life cycles are relatively short, requiring continuous innovation.

Logistics costs continued to decrease from previously elevated levels as a result of declines in both expedited shipments and overall rate costs in the freight network.

Inventory management is complex, as we continue to sell a significant mix of products through distributors. We must manage both owned and channel inventory effectively, particularly with respect to sales to distributors, which involves forecasting demand and pricing challenges.

The elevated order book levels we experienced in fiscal 2022 have generally been declining throughout fiscal 2023, as supply chain constraints eased (though challenges still remain) and demand softened unevenly across our portfolio

R&D efforts are focused on designing and developing products, services, and solutions that anticipate customers' changing needs and desires and emerging technological trends, including AI and hybrid cloud.

R&D investments in HPC & AI are focused on developing new technology in high-performance networking, liquid cooling, scalable memory systems, and high-performance storage and data solutions that underpin HPE's differentiated offerings.

The company's policy is to seek patent protection for inventions likely to be incorporated into products and services. The worldwide patent portfolio included approximately 13,000 issued and pending patents as of October 31, 2023.

The company returned capital to shareholders through quarterly dividends and share repurchases, demonstrating a commitment to stockholder value.

With the H3C disposition expected to close, the company intends to consider a range of allocation activities, including strategic investments and return of capital to shareholders.

The company makes investments to further its business, including acquisitions, strategic alliances, and joint ventures.

HPE has committed to becoming a net-zero enterprise by 2040, with intermediate targets set across its value chain for 2030. These climate targets are approved by the Science Based Target initiative.

In 2023, HPE launched a portfolio of new and enhanced sustainable IT services to enable IT to run more sustainably from the data center to the workload.

Human rights principles are embedded in how HPE does business, and the company is committed to holding its entire value chain to high ethical standards that respect such principles.

Approximately 64% of overall net revenue in fiscal 2023 came from sales outside the United States, highlighting the importance of international markets.

Ongoing conflicts, such as those between Russia and Ukraine or Israel and Hamas, and the relationship between China and the U.S., could negatively impact business and financial performance.

Changes in U.S. trade policy, export controls and sanctions, and regulations concerning imports, as well as international laws and regulations relating to global trade, could harm future revenue, costs, and expenses.