Name: Altice CEO On The Best Deal In Wireless And Staying Profitable
Uploaded: 2019-09-05
Duration: 4 min 57 s
Description: Altice is entering the wireless market offering an unlimited plan for $20 a month for life. How can they stay profitable?

[ MUSIC ] Antonio, you just reported earnings which came out better than expected, and you said it's a sign of HPE's momentum. Can you keep up that pace given that the US economy and the global economy Seem to be slowing down? Yes, we believe so. And the reason why is because we have been executed with strong discipline over the last seven quarters. And we believe Q3 was a pivotal moment for us in the sense that we deliver the strongest profitability. Since q1 2017 and that actually gave us the confidence to race against guidance for the balance of the year and looking through 2012 and beyond with with With an eye on where the markets gonna be and where the innovation needs to be focused on. But your revenues came in lower than expected and you told Wall Street analysts that you're seeing, quote, uneven demand because of trade tensions that have been impacting customer confidence. And I understand that you've been making the rounds and going in and talking to your big customers. What are they telling you? what's worrying them? Well, customers are worried about, you know, the ability to maximize their investments for the biggest return. And when there is uncertainty, obviously they are revisiting their budgets. They are revisiting, you know where to spend the money and be more stringent on the prioritization. As there is uncertainty, they want to make sure they put toward the capital in the best possible way. And as the tariff raises the prices, they just need to understand what is best for them. And on top of that, everybody's also talking about upcoming recession. So what are your customers are saying about, their spending plans, and especially about their budgets for tech spending in 2020? I think of the staying the course. They are now pulling back. They're not increasing it right now, but definitely they are looking at how to optimize those budgets. All the customers have talked to nobody has told me, my budget is going away. What they're looking for is until you give us direction where to spend the money for the maximum return. And what about at HP itself? I mean, given this uncertainty Out there. What are you doing about your plans and your spending decisions? How are you preparing for 2020 ?>> Well, we have increased and will continue to increase our investments both in the r & d side to drive the best innovation and market coverage. So no slowing down at all .>> Are you increasing your capital expenditures or your Or are you just holding the line? No, in fact, if you think about the acquisitions I'm making, the last quarter we made two. We announced that Cray Supercomputer will be one of the acquisitions we are [ UNKNOWN ] to close Was that by the end of this fiscal quarter, and the old was the acquisition of mapR assets. So, we are losing our balance sheet to accelerate our strategy by bringing the right intellectual property in the right talent. So we are actually. Accelerating I think, in this market is a big opportunity because there will be consolidation. There will be opportunities to acquire companies at the lower value because of the market kind of reassessment and I think there's an opportunity for us. So let's talk a little bit more about HP's business itself and you've been helping companies modernize their infrastructure, moving some of their data into HP servers and storage centers and also in the Cloud. When you look at HP's financial performance, how is this Hybrid approach working out It is because let me give you an example all the strategic areas we made investments whether it is high performance computing for the backbone of AI machine learning, you and I were talking early on about the need to accelerate outcomes from the data, whether it is connectivity at the edge where now we go from billions of Users and devices to trails of things always there is offering everything as a service which ultimately is spenegality all those businesses have been globe and very nicely for us. So as we go through this portfolio make shift we gonna see. High growth, higher margin and longer term recurring revenues, which ultimately is a good thing for our shareholders. You You heard the debate though, there are some tech experts who are saying that the big opportunities and the real future is the cloud, and that companies like Amazon, Google and Microsoft are on the right track by putting their stake in the cloud. What do you say to that? When you talk to customers they tell you, I'm not gonna put everything on the cloud I'm gonna put stuff in my data center or somebody else data center close to me in some stuff in the public cloud. But in the end we're gonna live in this hybrid world and therefore infrastructure, Enable by the software experience that provides the cloud agility is gonna be necessary as we go forward and that's an opprotunity for us. You also say that the next new big thing is edge computing. I mean tell us and anm easy to understand way what this is and why so important. We live in a world that everything is connected, right? So think about your personal lives, whether it's your mobile phone or now the home, thermostats, refrigerators, anything is connected to the network. And therefore, that connectivity has to have security built into it. More and more intelligence is built into those devices which means data gets processed exactly the point of Where they are operating. In fact we say 75 % of the data is generated where we live and work. And so the question is how we move the cloud experience closer whether data is generated so we can extract value real time. And that's why I start with connectivity security and then moving that cloud in the form of computing to the data. And that's the opportunity for us. But that new edge computing that's years away. I mean how long is it going to be before it can have a significant impact at HP? We believe is going to move much faster than I've ever seen before. We believe that verticals like manufacturing health care are adopting this new age computing technologies with. Faster because the amount of data that's being created needs to be processed where the action is. And with the implementation of 5G with a new type of connectivities, we'll actually open new use cases. So we believe it's gonna move much faster than we think. And for us is a big opportunity to get ahead of it. [ BLANK_AUDIO ]

Altice CEO On The Best Deal In Wireless And Staying Profitable

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Altice is entering the wireless market offering an unlimited plan for $20 a month for life. How can they stay profitable?