Hewlett Packard Enterprise (HPE) unloaded some assets from its long-tenured telecom operations in a move to bolster its focus on more of its core aspirations. The move also comes as HPE sits on a still-pending acquisition of Juniper Networks, which itself is set to boost its telecommunication efforts.

HPE is handing off some of the assets from its Communications Technology Group (CTG) to India-based managed network services (MNS) provider HCLTech. HPE’s CTG group has been part of the vendor for more than 30 years.

HPE CFO Marie Myers in a blog post noted the “divestiture of assets” included CTG’s systems integration, network applications, video solutions, data intelligence and business support system (BSS), which when aligned “with HCLTech’s highly digitized telecoms services practice will extend HCLTech’s leadership in the telecoms services market.”

“Our priority is to focus on the markets most relevant to customers’ needs across edge, hybrid cloud and [artificial intelligence],” Myers wrote. “Sometimes, this means identifying areas of our business that could be better nurtured and grown through another company or partner.”

Financial details were not announced and an HPE spokesperson told SDxCentral in an email that the vendor did not have anything else to provide beyond Myers’ blog post. That post did hint at some of HPE’s CTG employees making the switch to HCLTech.

“I am confident that by joining HCLTech, CTG will be a part of a combined company that will enhance value to our customers and team members as part of a telco-solutions-focused company,” Myers wrote, adding that HPE will hold discussions with HCLTech throughout the closing process on an expanded strategic partnership.

HCLTech was ranked by Gartner in the “leaders” quadrant of the analyst firm’s 2022 ranking of worldwide “Managed Network Services.” Others in that quadrant included MetTel, ATSG, Microland and WiPro.

The MNS last year also took on management and support of Verizon Businesses’ global enterprise customers in a move that also included the transition of Verizon Business employees to the India-based managed network services provider.

HPE adjusts its telecom focus with Juniper in its future

HPE will retain its Telco Solutions group, which is its operations support systems (OSS) group that is part of the CTG operations. Myers stated this group, which is focused on OSS, orchestration, assurance, and 5G networking “will continue to deliver value for HPE’s telco customers and partners.”

Myers also touted many of HPE’s recent telecom-related acquisitions. These include OpsRamp, Athonet and Axis Security “to accelerate our strategy and enhance our capabilities in IT operations, private 5G and security, respectively,” and pointed to recent comments from CEO Antonio Neri about the vendor’s ongoing focus toward supporting telecommunication providers’ 6G network plans.

“We are accelerating our innovation in the telco market to help our customers modernize their networks,” Myers wrote. “By focusing our efforts around key strategic areas of strength, we are well positioned to help telcos succeed in the 6G era and beyond.”

That focus will also soon include HPE’s pending $14 billion acquisition of Juniper Networks. Myers noted this “will create a new networking leader with a comprehensive portfolio that presents customers and partners with a compelling new choice to drive business value.”

Juniper CEO Rami Rahim touted the combination of 5G-related assets during the announcement press conference, stating it “gives us way more of the building blocks necessary to put together a comprehensive 5G and O-RAN solution for our customers.”

“Today, one of the challenges with 5G O-RAN is the ability to piece together these components into a seamless, fully integrated solution for our customers,” Rahim said. “I think, post-close, we will have a much better opportunity to provide these comprehensive solutions to capture that opportunity in the market.”

Neri agreed.

“Rami will get access to more capabilities than the ones that he traditionally has in the core, the metro or the edge,” Neri said. “This is a massive opportunity that will reignite and grow their service provider business with more assets than ever before.”

Ron Westfall, research director at The Futurum Group, noted in a podcast shortly after that deal was announced that the combined assets will help both players, especially as they look to battle rivals.

“Juniper definitely has an established, proven telecom business. In fact, it could be Juniper helping HPE pulling through more business on the telecom side because of these existing relationships,” Westfall said, later adding, “I think the combination with HPE can help Juniper’s telecom fortunes. And the fact is when you’re looking at the overall 5G space, I think there is simply new opportunities that will give the new HPE-Juniper opportunities that aren’t going to be unique to Cisco or say players like Dell and Lenovo, that is looking at [open radio access network] specifically.”

Westfall noted Juniper’s progress with its open RAN intelligent controller (RIC), which operates in the middle of an open RAN deployment as a kind of linkage to the wider network. It allows operators to deploy so-called xApps that then allow operators to design and control RAN functions, providing administrative RAN sovereignty over functions that are typically implemented as proprietary features on base stations.

“I think [this] is one area where they can make competitive inroads and that Cisco doesn’t have a dominating market position in at all at this juncture,” Westfall said of Juniper’s open RAN position. “And specifically, Juniper’s RAN intelligent controller … brings that intelligence and programmability to the RAN by enabling third-party applications. This is going to be important [to] improve service experience, reduce costs and deliver new business models.”

HPE can also further this progress by tapping into its wider influence.

“I think HPE can help through the channels to support the third-party applications, more influence with the developers and so forth to help drive more open RAN innovation, let alone overall open 5G innovation,” Westfall added.

This open RAN innovation is set to accelerate this year as more operators throw their financial weight behind the technology. The most recent example was AT&T’s announcement that it plans to spend up to $14 billion over the next several years to roll out open RAN across its network.

“Those types of scenarios, I think, both HPE and Juniper can play a more key role in,” Westfall said. “Also, I think that the fact that HPE offers RAN automation software can definitely enhance the new combined portfolio. So HPE and Juniper in this case are actually complimenting each other as they noted for what is a key motivation for this deal.”