HPE Refines Its Telco Strategy for the AI Era

HPE has outlined a renewed telecommunications strategy centered on its networking strengths and recent acquisition of Juniper Networks.
The company plans to focus on high‑growth areas while divesting its Telco Solutions business to HCLTech.
Its updated approach emphasizes AI‑driven networking, next‑generation infrastructure and deeper collaboration with service providers.

A New Direction Built on Networking Strengths

HPE is reshaping its telecommunications strategy by concentrating on areas where it can deliver the most value. The acquisition of Juniper Networks has created a combined networking portfolio aimed at building next‑generation infrastructure for enterprise, cloud and service provider customers. As digital environments grow more complex, the company sees AI‑enabled networking as essential for improving performance and simplifying operations. Its expanded portfolio spans campus and branch networks, data center routing, switching and security.

The company describes this shift as a move toward redefining connectivity experiences for customers. By focusing on core strengths, HPE aims to align its networking capabilities with broader business objectives. This includes prioritizing high‑margin segments where demand for advanced networking solutions continues to rise. The strategy reflects a long‑term effort to position HPE as a key player in AI‑driven network transformation.

As part of this realignment, HPE announced plans to divest its Telco Solutions business to HCLTech. The unit has been known for its OSS assurance platforms, orchestration tools and public 5G subscriber management software. Its specialization in telecom‑specific products makes it a strong fit for a systems integrator focused on communications service providers. HPE expects the business to continue growing under HCLTech’s ownership.

The company emphasized that the divestiture allows it to concentrate on areas with greater strategic impact. Telco Solutions has delivered value to global telecom operators, but its product‑centric model differs from HPE’s evolving focus. HCLTech’s expertise in large‑scale transformation projects positions it to support the business more effectively. HPE sees the move as beneficial for both organizations and their customers.

Supporting Service Providers Through AI‑Native Networking

HPE continues to highlight the importance of modern networks for service providers, public sector organizations and hyperscalers. Its high‑speed routing, switching and security solutions are designed to support increasing data traffic and operational complexity. Communications service providers face growing demands for automation, resilience and AI‑driven insights. HPE aims to address these needs through integrated, scalable networking technologies.

A recent partnership with Ericsson illustrates this direction. The two companies are establishing a test lab in Sweden to develop AI‑powered solutions for 5G and future networks. Their collaboration is intended to help service providers deploy more efficient and intelligent infrastructure. The initiative also reflects broader industry efforts to accelerate innovation in telecommunications.

AI‑native networking plays a central role in HPE’s strategy. Automation tools are designed to simplify operations, enhance security and strengthen defenses against cyber threats. These capabilities are increasingly important as networks expand and become more distributed. HPE believes that AI‑driven approaches will be essential for managing next‑generation architectures.

The company showcased several new products at HPE Discover Barcelona, including PTX and MX Series Routers and the SRX4700 firewall. These offerings target service providers seeking to modernize their infrastructure for the digital era. HPE also signaled its ambitions in emerging 6G technologies, including xHaul networks, edge computing and in‑network AI inference. The company expects these areas to shape the next decade of telecommunications innovation.

Positioning for Long‑Term Growth in the Telco Sector

HPE describes its future in the telco space as one defined by AI‑native networking, open architectures and robust security. The company believes it is well positioned to help service providers scale their networks efficiently. As AI workloads grow, network infrastructure must adapt to support new performance and reliability requirements. HPE aims to deliver the systems needed to meet these evolving demands.

The company’s strategy focuses on enabling customers to extract more value from their networks. Differentiated technologies are intended to support both operational efficiency and long‑term innovation. HPE sees its role as providing the foundation for service providers to deliver improved experiences to their own customers. This approach aligns with broader industry trends toward automation and intelligent network management.

Looking ahead, HPE plans to continue expanding its capabilities through partnerships, product development and ecosystem collaboration. The company expects AI to reshape how networks are designed, deployed and maintained. Its goal is to help service providers navigate this transition with scalable, future‑ready solutions. The upcoming Mobile World Congress 2026 will serve as a platform to demonstrate further advancements.

Overall, HPE’s updated telco strategy reflects a shift toward high‑growth segments and AI‑driven innovation. The divestiture of its Telco Solutions business allows the company to focus on areas where it sees the greatest opportunity. Its investments in networking, security and automation position it to play a significant role in the next phase of telecommunications evolution. The company remains committed to supporting service providers as they adapt to rapidly changing digital landscapes.