HPE Software Testing Customers Face Unanswered Questions, Five Months after $8.8 Billion Deal

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Micro Focus has continued to work on rolling testing assets of HP Enterprise (HPE) software division into its portfolio, thereby tripling its current size and becoming a pure-play software vendor with revenues of around $4.5 billion. And while that is taking place, HPE’s software testing continues to come under significant market pressures — leaving unanswered questions for HPE customers.

Q.1 What’s the future of HPE’s Testing Assets That Overlap with Micro Focus?

One of the biggest questions facing HPE customers is what the future holds for some of the “overlapping” tools that exist between these two companies.

The plan of Micro Focus seems to be consolidate the mature slow-growth software business of HP Enterprise and increase the operating income margin of this business by 20 percentage points to around 45 percent. The other part of the plan includes using HPE tools in fast-growing verticals such as analytics and security, while building preferred partnerships on the fast growing SUSE portfolio to further leverage the growth SUSE has been experiencing.

The Analyst View of this Spinoff/Merge – Gartner

In a recent report, HPE’s Spinoff/Merge of Its Software Businesses to Micro Focus May Create Significant Challenges for Users, Gartner highlights the uncertainty and challenge the spin-merge creates for current HPE customers. It says that given the announcement of Micro Focus to drive 20% more margins out of this newly acquired software, HPE software customers should at least be cautious.

Gartner believes HPE customers should also be wary primarily because of the little innovation Micro Focus has shown as well as the complex and uncertain overlaps in the Micro Focus and HPE offerings portfolio. The fact that committed Micro Focus product roadmaps won’t likely be available until late 2017 just makes it harder for HPE customers to figure out what’s happening.

As one of the recommendations, Gartner mentions HPE customers should create migration options from HPE Application Delivery Management Solutions in case they are needed.

Q.2 HPE Continues to Struggle competitively in Web/Mobile: What happens next?

Another question facing customers that have relied on HPE for their software testing needs is what will happen to the core capabilities of the platforms given they are already struggling competitively?

The Analyst View – Gartner Ranking

Gartner’s Critical Capabilities for Software Test Automation report came out in January. The report ranks ten automation vendors based on the strength of their web testing offering.

This includes support for cross-browser testing, dashboards, integration capabilities, cross-platform support, along with open source support among others. HPE products evaluated for this report included: HPE Unified Functional Testing (including HPE LeanFT), HPE Mobile Center 2.0, and HPE Business Process Testing Framework.

As seen below, HPE testing tools ended up in the middle. For Micro Focus, navigating the transition period while modernizing the HPE web testing tool kit to meet emerging web testing trends can be extremely hard and expensive.

Software-Test-Automation-1

Mobile Testing: Same Story, But Slightly Better Result

Similarly, when Garter rated nine vendors for their ability to automate testing of apps developed for mobile devices using native, native hybrid and web hybrid technologies, HPE ended up on fourth spot. Just like with web testing, Micro Focus has its work cut out to improve mobile testing tools of HPE while working to reconcile the overlaps of HPE with its own mobile testing tools.

Software-Test-Automation-2

Q.3 How Will HPE Keep Up with Growing Competitive Pressure?

Sensing vulnerability of HPE products along with the uncertainty the spin-merge creates, multiple competitors continue to invest heavily in order to gain market share from HPE. A recent example of this was when Tricentis, an Austrian software firm, raised $165 million to take on HPE.

In the meantime, we have also been placing a lot of emphasis on ensuring HP customers can easily move over to SmartBear software tools in a low risk and no downtime manner.

Some of these focus areas include:

  • Migrate Your HP Assets to SmartBear
    • Data migration is often a hurdle to migrating away from HP toolsets. To mitigate this challenge, we’ve built an HP migration tool for an easy and quick way to get started with SmartBear. Watch the video below to see a migration from HPE’s functional UI test automation tool to TestComplete.

  • Free Training and Consultations
    • A critical challenge faced by organizations while ripping and replacing tools is how to get teams up and running quickly on the new tools. We offer complimentary training classes across all of our products to get users up to speed quickly.
  • New Partnerships
    • In case you are looking for consulting services while rolling out SmartBear tools, we have continued to build upon our partner ecosystem. Examples include Accenture, Cigniti, Cognizant, and Sogeti among others. We recently added Wipro was to this exhaustive list.

In the wake of the $8.8 billion deal, little has been done to ensure that current HPE users will be able to rely on these tools moving forward. Help us know a bit more about your challenges with HPE testing tools by taking our survey. And as an appreciation of your assistance, we will be awarding 10 people who complete the survey with a $50 Amazon card.

Follow the author on twitter @kaulnikhil

 

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