HPE plans to invest $4B over the next 4 years in intelligent edge networking products to become an end-to-end enterprise solution provider of the future.  HPE’s new CEO Antonio Neri, who recently replaced Meg Whitman, made the announcement in the company’s Discover conference in Las Vegas last week.

According to Gartner, 75% of the enterprise traffic will be generated at the edge, by the year 2022 –  thanks to increasing number of IoT and mobile devices enabled in enterprise networks.  HPE wants to invest in itself to be uniquely positioned to address this trend.

De-centralizing the cloud and moving it closer to the edge reduces the  latency involved in sending data from IoT devices in the enterprise to the Cloud IoT controller, processing the data in the cloud and relaying the information back to the IoT devices at the enterprise edge.  The IoT devices cannot make split second decisions if the processing happens in a centralized cloud.  For example, Google’s Self Driving Car that needs to make split-second driving decisions, is an ideal use-case for edge computing.  In addition to the reduced latency in decision making, the advantage of bringing the cloud closer to the edge devices and within the realm of an enterprise is that the data will be secure.

Antonio Neri says, “The next evolution in enterprise technology will be in edge-to-cloud architecture.  Enterprises will require millions of distributed clouds that enable real-time insights and personalized experiences exactly where the action is happening.”

HPE will invest the $4B in various edge product portfolios within the company, including Aruba’s WiFi products, in areas such as connectivity, security, machine learning and AI.  HPE could potentially acquire intelligent edge computing startups that would complete the HPE’s edge computing story.

HPE’s competitor, Cisco, has also made several investments in this space and is well positioned to harvest the IoT edge-computing trend in the enterprise market.