• HPE is “sharpening” its telecom sector focus
• It is selling its Telco Solutions unit to Indian systems integrator HCLTech for up to $160m
• HCLTech previously acquired HPE’s BSS portfolio

With the ranks of its telecom network product portfolio swelled by the acquisition of Juniper Networks, HPE is “sharpening” the focus of its Networking division by selling its Telco Solutions unit, which comprises a range of OSS and mobile data management tools, to Indian systems integrator HCLTech in a deal valued at up to $160m. 

HCLTech, a global tech company with more than 226,000 staff and annual revenues of $14.2bn, says it will gain a portfolio of OSS tools (service assurance, orchestration and fulfilment, and automation solutions) as well as home subscriber server (HSS) and 5G subscriber data management (SDM) systems that support “more than 1 billion devices… across 200+ deployments globally”. 

Some “1,500 engineering and telecom specialists from 39 countries will join HCLTech’s global delivery team to help scale the business,” noted the Indian firm in its press release: About 1,225 are employees and 260 are contractors.

It is paying up to $160m in cash for the Telco Solutions business (including $15m based on 2025 business performance), with the acquisition expected to close during the first half of 2026.

HCLTech noted in its press release about the deal that it will “leverage this expanded capability to accelerate network transformation, network-as-a-service (NaaS) and AI-led autonomous networking” for its telco customers.

In its filing with the BSE (Bombay Stock Exchange), it noted that the acquisition will help it to “accelerate 5G network transformation, network cloudification, network-as-a-service (NaaS), autonomous networking, service management and orchestration (SMO), AI-led network automation and AI-native networks for global CSPs.” 

Anil Ganjoo, chief growth officer and global head of telecom, media, publishing & entertainment and technology (TMT) at HCLTech, stated in the company’s press release: “We are very excited about the opportunity ahead, as HCLTech is uniquely positioned to empower CSPs to realise their transformation into true technology companies – advancing the shift from telcos to techcos. Integrating this highly skilled HPE team and their market-proven IP strengthens our product-aligned model and accelerates our shift toward higher-value, IP-led services and non-linear growth.”

Rami Rahim, president and general manager of HPE’s Networking division, added: “HCLTech has a compelling vision for enabling CSPs that will harness the Telco Solutions business’s momentum and track record of customer success to further accelerate innovation and customer impact. This transaction will yield benefits for CSPs for many years to come, as both HPE and HCLTech pursue their unique, differentiated approaches to supporting this vital sector of the market, through strategic focus and commitment to innovation.”

The two companies have M&A history, as HCLTech previously acquired HPE’s telco BSS, network applications, service cloudification and data intelligence portfolio, a deal that closed in December 2024 and saw the transfer of 1,500 HPE staff to the Indian company. HCLTech says the BSS business has “been successfully integrated and is now growing.”

Both Telco Solutions and the BSS portfolio were formerly part of HPE’s Communications Technology Group (CTG).  

In a blog published about the deal, Rahim, who was formerly CEO at Juniper Networks, noted that the Networking division created by the combination of HPE and Juniper Networks portfolios is “leaning into our areas of core strength and focusing on the areas where we can deliver the greatest value to customers and support our overall HPE business objectives… we have everything customers need to harness the power of AI to transform their networks, streamline operations, and seize new opportunities to drive their business forward. We have an industry-leading, comprehensive portfolio spanning campus and branch, datacentre networking, routing, and security. And we are focused on delivering these solutions to customers in enterprise, cloud and service provider sectors.” 

Rahim continued: “We are sharpening our focus on high-growth, high-margin parts of the market” and, as a result, it is offloading Telco Solutions, a “trusted partner in the telecommunications market, known for its excellence in operations support systems (OSS) assurance and orchestration platforms and public 5G subscriber management software for telecommunications companies. Its model revolves around developing telecommunications-specific products, and it has growth potential in supporting communications service providers (CSPs) with large, complex transformation projects. The specialised expertise of our Telco Solutions business is a great fit for a systems integrator like HCLTech that serves this market specifically and can deliver innovation and impact to communications service providers. This business has delivered substantial value to telecom companies worldwide and is poised for continued success as part of HCLTech.” 

The deal allows Rahim and his team to focus on developing and delivering “high-speed routing, switching and network security solutions” to telcos, public sector entities, hyperscalers, and datacentre interconnect customers. “Specifically for communications service providers, we help them face increasing demands for modern networks with solutions that can support complex operations, rising data traffic, and the transformative capabilities of AI.” added Rahim. He also highlighted HPE’s recent establishment with Ericsson of a test lab in Sweden “to develop cutting-edge, AI-powered solutions for 5G and future networks. This collaboration will enable CSPs to deploy faster, smarter, and more efficient networks, driving innovation and advancing the capabilities of the telecommunications industry.”

- Ray Le Maistre, Editorial Director, TelecomTV