UPDATED 12:59 EDT / FEBRUARY 17 2014

HP puts senior execs in Cloud group : Bethany Mayer in charge

Bethany-MayerAccording the leaked memo, Hewlett-Packard is reassigning Bethany Mayer, who was heading up HP Networking, to a new role as SVP/GM of Network Functions Virtualization (NFV) (definition: Wikibon) a strategic portion of the new cloud initiative formally run by Saar Gillai now by Martin Fink (all three are Cube Alumni guests).

I’ve interviewed Bethany many times – she is a rock star in the tech community – a #techathlete.  HP doesn’t want to lose her.  She is a star. See interview below.

See full memo below (source: Recode).

To: All HP Enterprise Group and HP Cloud employees

New Leadership for Network Functions Virtualization (NFV)

In the New Style of IT, it’s increasingly clear; the world’s largest telecommunications companies are embarking on one of the single biggest technology infrastructure refreshes in the world – to dramatically reduce the cost of delivering anytime/anywhere access to voice, video and data. Concurrently, they need to increase the agility and speed to innovation needed to support the fast-growing social applications and immersive user experiences of tomorrow.

Enter Network Functions Virtualization (NFV) – an alternative design approach for building complex IT applications in the telecommunications and service provider industries. This is a great opportunity for HP to leverage the breadth and depth of our portfolio, our experience and our partnerships with network equipment providers and carriers.

What makes this opportunity even more attractive is how well it aligns with our pan-HP work in cloud and Communications and Media Solutions (CMS) work in Enterprise Services. But to actively pursue it – we need focus and leadership.

To help us win, Bethany Mayer will assume the responsibility of leading the Network Functions Virtualization (NFV) business as its SVP/General Manager. NFV will be a company-wide initiative requiring Bethany’s ability to partner with EG, ES and HP Cloud to deliver an integrated NFV solution. In addition, the NFV business requires a leader with start-up experience, strategic orientation, and knowledge of the networking space – making Bethany the ideal leader for this important opportunity.

Given the close alignment of NFV to HP Cloud, effective immediately, Bethany will report to Martin Fink in his HP Cloud leadership role. The NFV effort will join our cloud organization, which continues its operating model established last November.

The growth and success of our networking business is essential to the success of the Enterprise Group and HP. In networking, our strategy is sound and the opportunity huge – during this transition, we need to maintain continuity of leadership by having Bethany continue as HP’s Networking SVP/General Manager. We look forward to HPN extending its record of 16 consecutive quarters of growth as we close Q1 and start Q2.

Since both NFV and HPN are important full-time jobs, Bill Veghte will be actively searching for the next leader of our networking business. That leader will continue HP’s customer mandate to deliver simple and better networking solutions for the New Style of IT – and ignite the people and capabilities in HPN.

We want to thank Bethany for her hard work and contributions to our networking business, and please join us in congratulating Bethany in her new responsibilities.

Bill, Mike & Martin

What does this mean?

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HP is putting lots of bets on the cloud and this move highlights that.  In addition it seems the old enterprise DNA is being flushed with a new focus on keeping their mature markets from falling in share.  The growth opportunity is in new markets – cloud and mobile. The consumerization of IT, or as HP calls it the New Style of IT.  We have been seeing replacement of all the top execs coming after Dave Donatelli left the role running the enterprise group.

My take is that Bill Veghte continues to hire more new executives to run the more mature enterprise division (aka slowing growth markets).  It’s clear that Meg’s key turnaround plan will be the cloud where the build out is taking place. Saar Gillai has been leading that effort and scaling the organization.  He now has a peer in Bethany Mayer all reporting to Martin Fink who reports Bill Veghte who reports to Meg Whitman. Outside the awkward sounding reporting structure this is a power group of senior operating executives and Fink a R&D manager reporting to non-technical COO.  If Meg lets this team execute, then damn, it will be powerful.

Amazon is the gold standard in public cloud and HP’s only hope is to change the game on Amazon by making the cloud enterprise ready and doing it fast.  HP must change the game.  If HP tries to take on Amazon Web Services directly it would cost them tens of billions of dollars, and many years to get current.  That assumes Amazon doesn’t keep introducing new products.

If Meg can motivate the team in cloud group without having lots of “red tape” then HP has a  chance to win and win big.  If she rearranges the deck chairs then, well….

Execution is what we will be watching

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Here is my latest interview with Bethany Mayer in Barcelona last fall. I’ve interviewed Bethany many times – she is a rock star in the tech community – a #techathlete. HP doens’t want to lose her. She is a star.


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