HPE may soon become a hardware-only vendor

[sincity]

HPE is poised to sell off its software division in another major move following the big split of HP which happened almost a year ago now (when Hewlett Packard Enterprise and HP Inc were created).

Sources who spoke to Reuters reckon that negotiations are well underway to sell the software unit. Apparently offers thus far have reached around the $7.5 billion mark (about £5.5 billion), and the current front-runner is private equity firm Thoma Bravo.

The insider chin-waggers, however, made it clear that at this point a deal isn't certain, as there are "significant discrepancies" in terms of the valuation of the software division.

HPE is looking for between $8 billion and $10 billion (£6 billion to £7.5 billion), so it seems the organisation is looking to push Thoma Bravo a little bit further in terms of dipping into its wallet.

But HPE may still end up going with one of the rival equity firms bidding, either that or Thoma Bravo may only purchase certain assets rather than the whole division.

In other words, it sounds like a deal is close, but not that close with an appreciable amount of wrangling still to be done.

Unloading the software unit would of course mean getting rid of HP Autonomy, which has been the source of much controversy, after the acquisition of the firm went sour with a massive write-down, followed by what might best be described as a heated legal battle in the courts.

• Also check out our closer look at HP's new revolutionary memory technology