News

Hewlett Packard Enterprise moving out of Palo Alto

Company relocating global headquarters to Santa Clara

Palo Alto's stock of tech companies in town is dwindling with Hewlett Packard Enterprise's plans to move its headquarters south to Santa Clara, the company announced Thursday.

Hewlett Packard Enterprise plans to relocate its base by the end of 2018 and sell its current building at 3000 Hanover St., company executives said in a press release.

The Palo Alto site is currently valued at $107,743,736, according to Santa Clara County Assessor's Office.

Hewlett Packard Enterprise (HPE) has spent the past two years transitioning into a "smaller, nimbler company," Hewlett Packard Enterprise CEO Meg Whitman stated in a press release.

Employees will be moved to newer locations in Santa Clara, which will become the new global headquarters, as well as Milpitas and San Jose.

The recently built Santa Clara location already serves as the headquarters for its subsidiary Aruba, which provides wireless networking services.

"I'm excited to move our headquarters to an innovative new building that provides a next-generation digital experience for our employees, customers and partners," Whitman said. "Our new building will better reflect who HPE is today and where we are heading in the future."

Hewlett Packard Enterprise will maintain its partnership with HP Inc. to maintain the Founder's Office of Bill Hewlett and Dave Packard in Palo Alto and the HP garage on Addison Avenue in Palo Alto where the company was founded, company executives said.

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Comments

12 people like this
Posted by AP
a resident of Barron Park
on Nov 2, 2017 at 12:49 pm

When HP leaves, the site will be converted to thousands of new homes/condos/apts. I can see the pro-expansion council members are already salivating with glee.


21 people like this
Posted by Neighbor
a resident of Barron Park
on Nov 2, 2017 at 1:06 pm

The HP site is part of Stanford Research Park. The land is probably leased to HP while HP may own the building. This limits what can be done with the site.


38 people like this
Posted by Old Timer
a resident of University South
on Nov 2, 2017 at 1:09 pm

“Palo Alto's stock of tech companies in town is dwindling...”

Not really. HP hasn’t been a tech company in a long time. It’s just a reseller and marketing company. Hopefully that space will open up for a dozen of the new tech innovators that will drive Palo Alto in the 21st century.


2 people like this
Posted by Nayeli
a resident of Midtown
on Nov 2, 2017 at 1:13 pm

There are two different HP companies -- HP Inc. and HP Enterprise. If HP Enterprise moves to Santa Clara, will HP remain?


38 people like this
Posted by Resident
a resident of Another Palo Alto neighborhood
on Nov 2, 2017 at 1:23 pm

Would this site be a good place for Palintir?


65 people like this
Posted by Abitarian
a resident of Downtown North
on Nov 2, 2017 at 1:23 pm

City Hall should lobby Palantir to leave downtown and move to the HPE site at Stanford Research Park.


10 people like this
Posted by Jason
a resident of Mountain View
on Nov 2, 2017 at 1:45 pm

Facebook or Google will overbid for the site. Perfect location for both of them. Still in Silicon Valley between two major freeways...101 & 280.


14 people like this
Posted by resident
a resident of Midtown
on Nov 2, 2017 at 2:14 pm

According to Wikipedia, HP has about 49,000 employees and HPE has about 50,000 employees, but they don't say how many of these jobs are actually located in Palo Alto. HPE has Meg Whitman as the CEO. Since these are supposedly 2 separate companies, I would be surprised if they both move out.


9 people like this
Posted by tax revenue?
a resident of Downtown North
on Nov 2, 2017 at 3:23 pm

I have heard that HP provides a huge SALES tax base for Palo Alto because many of its sales (through Amazon or whatever online distribution) get routed through us. Is this true? If so, would it be altered by this change? If what I have heard is correct (may not be!) that would be a very big deal for Palo Alto.


9 people like this
Posted by Patrick
a resident of Mountain View
on Nov 2, 2017 at 3:28 pm

Use the site for housing for Stanford Research Park employees. Perfectly centered in the area


8 people like this
Posted by tax revenue?
a resident of Downtown North
on Nov 2, 2017 at 3:28 pm

Answering my own question, I guess the sales tax isnt' TOO big. Below is a link to a quarterly Sales Tax report for Palo Alto... HP is in the top ten... so significant, but not as big as I was told.

Web Link


37 people like this
Posted by Yes, please move Palantir!
a resident of Fairmeadow
on Nov 2, 2017 at 4:32 pm

Yes, please move Palantir! is a registered user.

It would be GREAT to get Palantir out of our downtown. Can we move it here??

FWIW, I'm not sure this site is great for housing. Even if there were no constraints wrt being in the Stanford Research Park, it's not particularly walkable/bikeable to grocery/services, and it's not near any other housing. But I LOVE the idea of moving an ill-placed business like Palantir into this terrific business spot.


15 people like this
Posted by Concerned
a resident of Old Palo Alto
on Nov 2, 2017 at 5:11 pm

Count the number of high tech companies that have left our city since Palo Alto City Manager Keene has taken office.
Doesn't take a rocket scientist to figure out taxes lost and his qualifications as a manager.


6 people like this
Posted by Probably Google, not housing
a resident of University South
on Nov 2, 2017 at 5:17 pm

Housing would be nice, actually, except that the location is pretty far away from transit and retail. But probably Google will want it - they are looking for office space everywhere, they already have Nest in Palo Alto, and they prefer car-oriented office parks over than transit-oriented space in downtowns.


26 people like this
Posted by PA Resident
a resident of another community
on Nov 2, 2017 at 6:09 pm

HP no longer in Palo Alto, it's truly the end of an era.


Like this comment
Posted by the_punnisher
a resident of Mountain View
on Nov 2, 2017 at 6:41 pm

the_punnisher is a registered user.

Actually, HP is a major business in Loveland,CO. They wanted me in their Test and Measurement Division. Apogee Robotics grabbed the AGV business from HP.


4 people like this
Posted by resident
a resident of Midtown
on Nov 2, 2017 at 7:09 pm

@Probably Google - the HPE campus is just 1.5 miles from the retail and transit at California Ave. That may be too far to walk, but it is a quick bike ride and they can easily run a continuous stream of shuttle busses along Page Mill Road. When Caltrain finishes their electrification, the California Ave train station should get a boost in service.


6 people like this
Posted by Chris
a resident of University South
on Nov 2, 2017 at 7:36 pm

Housing makes the most sense. Stanford has indicated it is amenable to housing in the research park. This location has access to transit, which can easily be improved, and is close to shopping.

I believe the land lease runs out in about 10 years so whatever is developed will require a new lease. Would anybody really want to use the existing building for 10 years.

The whiners sbout too many jobs in Palo Alto should go hide their heads in shame.


31 people like this
Posted by Yes, please move Palantir!
a resident of Fairmeadow
on Nov 2, 2017 at 8:28 pm

Yes, please move Palantir! is a registered user.

@Chris, a better approach would be to keep this for business, and move businesses out of the downtown area, which is much better suited for housing and retail. Put things where they belong!


2 people like this
Posted by resident
a resident of Midtown
on Nov 2, 2017 at 8:36 pm

Most of the old office buildings on the north side of Page Mill Road, including the old Facebook campus, appear to be unused (for years). Does anyone know what's going on there? Why can't this property be put to better use?


Like this comment
Posted by To @ resident
a resident of Duveneck/St. Francis
on Nov 2, 2017 at 8:41 pm

To @ resident,
If I’m not mistaken (and I live on the other side of town so it’s possible), that old fb spot will be hundreds of houses developed by Stanford. They found some contamination in the area - TCE? Not sure current status of project.


26 people like this
Posted by resident
a resident of Midtown
on Nov 2, 2017 at 9:20 pm

Now I remember. There are at least 2 Superfund sites right on the HP campus and the whole street down to El Camino is contaminated. TCE: the gift that keeps on giving. I can't imagine wanting to live there even if the EPA approves, especially with Trump trying to castrate the EPA. I suppose the EPA will have an easier time monitoring the pollution if no new construction is allowed and the property stays zoned for commercial use, for as long as you can trust the EPA.


15 people like this
Posted by Juan
a resident of Mountain View
on Nov 2, 2017 at 10:21 pm

Why not designate the parking lot for RV use? Get the RVs off of El Camino into the soon-to-be-unused parking lot.


19 people like this
Posted by Chris
a resident of University South
on Nov 2, 2017 at 11:07 pm

Juan,

That site is incredibly valuable to Stanford. They are not going to use it for free RV parking.

If the housing is dense enough, it will be worthwhile to develop it as housing rather than commercial.

Once the building is torn down, any contamination can be more easily remediated.


7 people like this
Posted by Sophie
a resident of another community
on Nov 3, 2017 at 9:18 am

The zoning of Stanford Research Park (along Page Mill) is probably only for industry. But the transportation sucks with current number of business entities. Anyway, HPE Palo Alto already laid off many employees and has contractors to replace the vacancies. They can do whatever they want, moving to new HQ, shutting down functions, spinning off business. In addition with recent unfortunate fire destroying HP Archives, not much has been left from the golden days of this Silicon Valley founder.


21 people like this
Posted by To @ resident
a resident of Duveneck/St. Francis
on Nov 3, 2017 at 11:48 am

The Daily Post article today (Friday) on this subject includes Judy Feinberg claiming a “unfriendly business climate” in Palo Alto (p. 46). So we residents are to blame for this (written with sarcasm)


24 people like this
Posted by Sensible
a resident of Another Palo Alto neighborhood
on Nov 3, 2017 at 12:00 pm

There is no good place for Palantir in Palo Alto/Stanford. They need a hotter environment. Flaming hot.


6 people like this
Posted by another take
a resident of Downtown North
on Nov 3, 2017 at 12:05 pm

While many mention their desires for Palantir (and/or others) to move there, what a lot of people don't realize is that Stanford Research Park's popularity is quickly dwindling. The younger workforce prefers to work near urban centers and places where they feel connected to a downtown-like experience. Facebook's conversion of the old Sun campus in Menlo Park introduced this kind of feel with Hacker Way. Older veterans of the Research Park like Varian are desperate to create desirable work environments for the younger generation. This will be a coming issue that isn't necessarily addressed in the latest comprehensive plan...


34 people like this
Posted by resident
a resident of Midtown
on Nov 3, 2017 at 12:23 pm

@another take - the Palantir people can't have it both ways. They more they kill the retail environment downtown, they less of the "urban feel" they are going to get. Maybe they can move to the HPE site, then create a retail/restaurant corridor along Page Mill between their campus and the California Ave business and transit district? Turn California Ave into a bicycle boulevard for easy access without having to build new car parking lots.


8 people like this
Posted by Chris
a resident of University South
on Nov 3, 2017 at 12:38 pm

Somebody mentioned Feinberg; it's KLEINBERG who is head of CofC.

Forget all this petty arguing over Palantir.
Stanford is amenable to housing in the Research Park.
The City Council needs to jump on this HARD and play a leadership role.
STOP dithering as usual -- City Council; YOU CAN make this happen.


10 people like this
Posted by Crescent Park Dad
a resident of Crescent Park
on Nov 3, 2017 at 1:17 pm

Nowhere in the article does it mention that HPE is giving up it's lease. HPE just spent millions remodeling the Hanover (bldg 20 site). Use as an office building is not going away anytime soon. I'm sure HP will sublease it to either HP Inc or another tech firm.

I'm not a big fan of Palintir's efforts to infiltrate city politics and zoning issues. But most of you don't seem to get that if Palintir moves out, another stream of tech companies will move in and take its place. Better to know who you're up against instead of bringing in a bunch of unknown foes.


14 people like this
Posted by resident
a resident of Midtown
on Nov 3, 2017 at 2:15 pm

According to the Mercury-News, the HPE spokesperson says “We plan to sell the Palo Alto property” and “The goal is to complete the move by the end of October 2018.”
Web Link


6 people like this
Posted by Roland Hedshop
a resident of Green Acres
on Nov 3, 2017 at 2:30 pm

Apparently it won't be a pot shop either.

Web Link

About the right size building, considering the demand. The sales-tax revenue for the city would be more than what HP provides now.


17 people like this
Posted by John Resident
a resident of Midtown
on Nov 3, 2017 at 2:42 pm

Palo Alto Auto Traffic should be a factor in the decisions. It is already a big problem,
as we residents since 1980, have seen a significant worsening in the last decades.
It's a matter for professional traffic engineers to come up with choices for us residents, to vote for the best design(s), without strong
industrial/commercial pressure. Easier traffic is good for all Palo Alto residents
and workers.


26 people like this
Posted by Repeating a slur on PA
a resident of Old Palo Alto
on Nov 3, 2017 at 3:56 pm

Judy Kleinberg (Chamber of Commerce) says Palo Alto is not business friendly.
It seems she has not noticed that rents are sky high which is a deterrent to smaller companies. The high rents are caused by Chamber developers and businesses, not the city.
Oh, right, she wouldn't know that because the Chamber of Commerce occupies BELOW MARKET RATE office space in the fancy new building at 355 Alma St.
And she no longer lives in Palo Alto. Now I understand.


33 people like this
Posted by Resident
a resident of Another Palo Alto neighborhood
on Nov 3, 2017 at 5:49 pm

Not sure how much the Chamber of Commerce knows about "business friendliness" anyway, since in Palo Alto, the Chamber represents DEVELOPERS, not Businesses.


18 people like this
Posted by Curmudgeon
a resident of Downtown North
on Nov 3, 2017 at 11:03 pm

Weep not. HP checked out long ago, during the reign of Carly Fiorina. The legitimate heir to the Company of Bill and Dave is called Agilent.


8 people like this
Posted by Stanford person
a resident of Stanford
on Nov 4, 2017 at 8:45 am

Stanford is moving all administrative offices to Redwood City in 2019. This includes Stanford Research Park staff currently at Porter Drive and scattered about Page Mill.


21 people like this
Posted by mauricio
a resident of Embarcadero Oaks/Leland
on Nov 4, 2017 at 5:51 pm

HP ceased being a high tech company during theCarly Fiona regime, so Palo Alto is not "losing" a tech company.

As far as Palantir goes, it shouldn't be encouraged to leave downtown, it should be encouraged to relocate to a state in line with their products, such a Alabama, Mississippi or S. Carolina.


Like this comment
Posted by Anon
a resident of Another Palo Alto neighborhood
on Nov 6, 2017 at 12:57 pm

"mauricio, a resident of Embarcadero Oaks/Leland, on Nov 4, 2017 at 5:51 pm:"

"HP ceased being a high tech company during the Carly Fiona regime, so Palo Alto is not "losing" a tech company."

There are a lot of interesting engineering-driven companies, and, a lot of interesting marketing-driven companies, but, when the MBAs move in, everything changes.


Like this comment
Posted by MyOpinion
a resident of Community Center
on Nov 6, 2017 at 1:56 pm

MyOpinion is a registered user.

HP owns the buildings, has leased the land since the late 50's.


4 people like this
Posted by MyOpinion
a resident of Community Center
on Nov 6, 2017 at 5:49 pm

MyOpinion is a registered user.

@Mauricio
You got that right. Fiorina was the first CEO hired from the 'outside' and we can see how well that turned out...a failed CEO, but paid multi millions for the privilege, her successors following in her footsteps. HP's leadership has been an ineffective revolving door since her reign. Pathetic.

FROM 1947-1999 - HEWLETT, PACKARD, YOUNG, PLATT
Co-founder: David Packard (President: 1947; Chairman: 1964–1969; Chairman 1971–1993)
Co-founder: William Hewlett (Vice President: 1947; Executive Vice President: 1957; President: 1964; CEO: 1969; Chairman of the Executive Committee 1978; Vice Chairman 1983–1987)
CEO: John A. Young (1978–October 31, 1992)
CEO: Lewis Platt (November 1, 1992–July 18, 1999; Chairman 1993–July 18, 1999)

THEN A REVOLVING DOOR STARTING WITH FIORINA...1999 through 2017
CEO: Carly Fiorina (July 19, 1999–February 9, 2005; Chairwoman September 22, 2000–February 9, 2005)
President: Michael Capellas[1] (May 3, 2002 to November 12, 2002)
Interim CEO: Robert Wayman (February 9, 2005–March 28, 2005)
Chairwoman: Patricia C. Dunn (February 9, 2005–September 22, 2006).
President and CEO: Mark Hurd (CEO: April 1, 2005–August 6, 2010; Chairman: September 22, 2006–August 6, 2010)
Interim CEO: Cathie Lesjak (August 6, 2010–September 30, 2010)
President and CEO: Léo Apotheker (September 30, 2010–September 22, 2011)
Executive Chairman: Raymond J. Lane (September 22, 2011–April 4, 2013[2])
Nonexecutive Chairman: Ralph V. Whitworth (April 4, 2013–July 16, 2014)[3])
Current: Chairman, President and CEO: Meg Whitman (President and CEO: September 22, 2011–present ; Chairman: July 18, 2014–present)

I always said once Bill and David passed, the company would go to hell, much like a family who loses their patriarch.


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