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CNBC Transcript: Hewlett-Packard Enterprise CEO & HP Inc. Chairman Meg Whitman Speaks with CNBC’s David Faber on “Squawk on the Street” Today

WHEN: Today, Monday, November 2nd

WHERE: CNBC's "Squawk on the Street"

As HP Enterprise celebrates its first day of trading, CNBC's David Faber speaks with Hewlett-Packard Enterprise CEO & HP Inc. Chairman Meg Whitman in a CNBC interview on CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET) today. Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000441974, http://video.cnbc.com/gallery/?video=3000442253, http://video.cnbc.com/gallery/?video=3000442254 and http://video.cnbc.com/gallery/?video=3000442620.

All references must be sourced to CNBC.

DAVID FABER: HEWLETT-PACKARD SPLIT INTO TWO COMPANIES NOW OFFICIAL WITH HEWLETT-PACKARD ENTERPRISE MAKING ITS DEBUT TODAY. HP INC WILL CONSIST OF THE PERSONAL COMPUTER AND PRINTER DIVISIONS, WHILE HEWLETT PACKARD ENTERPRISE, HPE, WILL FOCUS ON SERVERS, NETWORKING, DATA STORAGE AND MANY OTHER KEY PRODUCTS TO KEEP THE TECHNOLOGY UP TO SPEED AT CORPORATIONS. THIS COMES AFTER HP SAID LAST MONTH IT WOULD WIND DOWN ITS PUBLIC CLOUD COMPUTING OFFERING BY THE END OF JANUARY. DROPPING OUT OF COMPETITION WITH THE LIKES OF AMAZON'S AWS SERVICE. HERE TO GIVE US DETAILS ON THE COMPANY'S PLAN FOR THE FUTURE IS MEG WHITMAN, CEO OF HEWLETT PACKARD ENTERPRISE AND CHAIRMAN OF HP INC. VERY NICE TO HAVE YOU. CONGRATS.

MEG WHITMAN: IT'S A THRILL TO BE HERE.

FABER: 13 MONTHS IN THE MAKING AND NO SHORTAGE OF DIFFICULTY IN TERMS OF ACTUALLY SPLITTING THESE TWO COMPANIES I KNOW THAT. LET ME START OFF ASKING YOU A QUESTION FROM SOMETHING IN YOUR PRESS RELEASE ANNOUNCING THIS THIS MORNING. YOU SAY WE HAVE A UNIQUE VISION FOR THE FUTURE OF TECHNOLOGY. WHAT IS THAT VISION?

WHITMAN: SO, EVERY COMPANY, WHETHER IT IS A SMALL COMPANY, BIG COMPANY IS HAVING TO TAKE THEIR LEGACY I.T. SYSTEM AND TRANSFORM THEMSELVES SO THAT I.T. CAN BE A COMPETITIVE ADVANTAGE. HOW DO YOU TURN AN IDEA INTO REALITY IN WARP SPEED? WE ARE UNIQUELY POSITIONED TO HELP COMPANIES DO THAT, WE HAVE HARDWARE, SOFTWARE AND SERVICES AND WE ARE FOCUSING AROUND A SMALL NUMBER OF PROBLEMS THAT ARE REALLY IMPORTANT TO CUSTOMERS. IT'S ABOUT TIME TO VALUE AND SPEED TO MARKET.

FABER: YOU TALKED A LOT ABOUT SPEED TO MARKET AND THE CHANGING MARKETPLACE AS A REASON WHY YOU PURSUED THE SPLIT AFTER YEARS OF DISCUSSING THE BENEFITS OF THE TWO COMPANIES BEING TOGETHER. IT'S INTERESTING TO NOTE THAT DELL AND EMC ARE GETTING TOGETHER IN PART TO RESPOND TO THE SAME THING, WHILE YOU'RE SPLITTING APART. WHAT IS THE DIFFERENTIATOR HERE IN TERMS OF YOUR DECISION VERSES THEIRS?

WHITMAN: THEY'RE TWO DIAMETRICALLY OPPOSED STRATEGIES. IT IS QUITE INTERESTING THAT WE HAVE CHOSEN TO DELEVER OUR BALANCE SHEET TO GET SMALLER TO BE MORE NIMBLE AND LEAN INTO NEW TECHNOLOGY LIKE OUR THREE PAR ALL FLASH STORAGE LIKE THE NEXT GENERATION OF NETWORKING AND SERVERS AND OUR SOFTWARE BUSINESS. WHILE DELL HAS CHOSEN TO GET MUCH BIGGER, LEVER WAY UP, AND REALLY CONSOLIDATE AND MAKE A COST PLAY AROUND OLDER TECHNOLOGY. SO, WE LOOKED AT THE MARKET. WE LOOKED AT HEWLETT-PACKARD'S STRENGTHS AND SAID BEING SMALLER AND MORE NIMBLE IN THIS MARKET IS A HUGE ADVANTAGE WITH NOT MUCH DEBT. SO HEWLETT-PACKARD ENTERPRISE WILL HAVE $5.5 BILLION OF CASH ON THE OPERATING COMPANY, WHICH IS A COMPLETELY DIFFERENT CAPITAL STRUCTURE. TWO DIFFERENT STRATEGIES. WE HAVE A LOT OF CONFIDENCE OUR STRATEGY WILL BE RIGHT BUT IT WILL BE INTERESTING TO FOLLOW OVER THE NEXT SEVERAL YEARS. BECAUSE YOU HAVE CALLED IT CORRECTLY THESE ARE DIAMETRICALLY OPPOSED STRATEGIES

FABER: IT WILL BE FASCINATING TO WATCH OF COURSE THAT DEAL LONG FROM GETTING CLOSED, BUT WAS A BIG HEADLINE FOR US. YOU MENTIONED OF COURSE THE PRODUCTS YOU'RE OFFERING. ONE OF THEM WILL NOT BE PUBLIC CLOUD, WHEN I TALK ABOUT AWS WHICH WE DID IN THE INTRODUCTION, TONY SAKANAGI USUALLY OUTSPOKEN ANALYST WHO FOLLOWS YOUR COMPANY SAID A BIG PART OF THE MARKET IS MOVING IN A SINGLE DIRECTION, MEANING TOWARDS USE OF THE CLOUD, AND HP ARGUABLY DOESN'T HAVE OFFERINGS TO CATER TO THOSE CUSTOMERS TRADITIONAL VENDORS HAVE CHALLENGES IN TERMS OF THAT MIGRATION YOU CAN ARGUE THAT OTHERS HAVE AT LEAST TAKEN MORE VISIBLE POSITIVE STEPS IN THAT DIRECTION. YOUR RESPONSE?

WHITMAN: OUR VIEW IS THE WORLD WILL BE A HYBRID CLOUD, IN OTHER WORDS SOME APPLICATIONS WILL BE LOCKED DOWN IN A CUSTOMERS DATA CENTER UNTOUCHED BY ANYONE BUT THEIR EMPLOYEES, SOME WILL BE ON A PRIVATE CLOUD ON THEIR PREMISE, SOME WILL BE ON A VIRTUAL PRIVATE CLOUD OR A MANAGED PRIVATE CLOUD ON THEIR PREMISES OR OURS OR ANOTHER SERVICE PROVIDER. SOME APPS WILL BE IN THE PUBLIC CLOUD. MY VIEW IS MOST COMPANIES, IT WILL BE SOME –APPLICATIONS WILL BE IN DIFFERENT INSTANTIATIONS

FABER: WHY ABANDON THE EFFORT AND WHY ALLOW THAT PART OF THE MARKET – NOT BE SOMETHING HP

WHITMAN: IT IS A BIG AND GROWING PART OF THE MARKET. BUT INTERESTING ENOUGH PRIVATE CLOUD WHERE WE LEAD AGAINST ALL OTHERS IS ACTUALLY A BIGGER PERCENTAGE OF THE TOTAL MARKET TODAY AND GROWING JUST AS FAST. WE DECIDED TO DOUBLE DOWN ON WHAT WE HAD A LEADERSHIP POSITION IN. WHERE WE KNEW WE COULD WIN. THE TRUTH IS THAT AMAZON AND AGER ARE WAY OUT IN FRONT IN THE PUBLIC CLOUD. AND OUR VIEW WAS IS THERE A WAY TO PARTNER WITH THEM WHILE WE PROVIDE THE HYBRID ENVIRONMENT? IT IS CLASSIC WHERE TO PLANY AND HOW TO WIN AND WE DECIDED WE HAD A BETTER CHANCE OF BEING A LEADER IN PRIVATE CLOUD WHAT WE ARE TODAY AND VIRTUAL PRIVATE CLOUD AND MANAGED PRIVATE CLOUD AND THEN OF COURSE OUR CLOUD SYSTEM AUTOMATION THAT HELPS YOU ORCHESTRATE YOUR CLOUD IN A MULTI CLOUD ENVIRONMENT IF YOU ARE A COMPANY.

JIM CRAMER: BUT WHEN I LOOK OVER HEWLETT-PACKARD ENTERPRISES I DO WISH SOMETIMES THAT YOU HAD DIFFERENT NAMES, M & A WILL BE KEY. THE CREDIT SUISSE PIECE WAS VERY GOOD TODAY. THE RECOMMENDATION. IT SAYS YOU HAVE 11.5 BILLION OF GROSS CASH, 5.5 BILLION OF NET CASH AND YOU CAN MAKE A SERIES OF ACQUISITIONS. AM I GOING TO SEE A COMPANY, HEWLETT-PACKARD ENTERPRISE NEXT YEAR AT THIS TIME THAT DOESN'T LOOK LIKE HEWLETT-PACKARD ENTERPRISE NOW.

WHITMAN: I THINK WE'LL LOOK QUITE SIMILAR NEXT YEAR TO THE WAY WE ARE TODAY. AND IF YOU LOOK BACK AT THE BEST ACQUISITIONS FOR OUR COMPANY OVER MANY MANY YEARS, THINK ABOUT 3PAR WHICH IS NOW OUR STORAGE COMPANY, 3COM, WHICH IS NOW OUR NETWORKING COMPANY, ARUBA WHICH WE JUST BOUGHT THOSE ARE THE KINDS OF ACQUISITIONS THAT ARE RIGHT FOR HEWLETT PACKAGE ENTERPRISE. THEY'RE COMPLEMENTARY TECHNOLOGY THAT LEVERAGE OUR GO TO MARKET STRENGTH, 90 THOUSAND VALUE ADDED RESELLERS AND DISTRIBUTORSAND OUR DIRECT SELLING FORCE. WE PAID FOR THOSE PRODUCTS BUT IT WASN'T THESE REALLY REMARKABLE MULTIPLES OF 90, 100, 150 TIMES EITHER REVENUE OR EARNINGS IF THERE ARE EARININGS AT THESE COMPANYS.

CRAMER: HOW DO YOU GET PEOPLE TO REALIZE THAT THE SO-CALLED BAD ACQUISITIONS WERE NOT DONE BY YOU?

WHITMAN: YEAH. LISTEN. I THINK PEOPLE UNDERSTAND THAT THE COMPANY HAS BEEN RUN DIFFERENTLY IN THE LAST FOUR YEARS. WE HAVE NOT MADE A BIG TRANSFORMATIONAL ACQUISITION, WHAT I CALL THROWING A LONG BALL. WHAT WE'VE DONE IS YOU KNOW ARUBA, I THINK EVERYBODY THINKS THAT WAS A PRETTY SMART ACQUISITION, IT'S OFF TO A GREAT START.

FABER: IT'S INTERESTING WE'RE TALKING ABOUT CONSOLIDATION, OF COURSE, BECAUSE DESPITE YOUR SIZE ON THE TOP LINE, WHAT? 53 BILLION IN REVENUES, AND YOUR EMPLOYEE BASE, 250,000, YOU ONLY HAVE A $26 BILLION MARKET VALUE.

WHITMAN: YEAH. YEAH.

FABER: YOU'RE NOT THAT BIG ANYMORE, MEG. AND I WONDER WHETHER HPE, GIVEN THE CONSOLIDATION GOING ON, I MEAN, JUST BY POINT OF COMPARISON, THE EMC DEAL, 65 BILLION. DOES HPE GET IN THE SIGHTS OF ANOTHER LARGE TECHNOLOGY COMPANY?

WHITMAN: SO, YOU NEVER KNOW WHAT WILL HAPPEN, RIGHT? WE LIVE IN AN INCREDIBLY DYNAMIC MARKET. I MEAN, OUR JOB IS TO DELIVER FOR CUSTOMERS. AND IF WE DO THAT, YOU WILL SEE OUR MARKET CAP GROW. AND WE HAVE A LOT OF CONFIDENCE IN THE PRODUCTS THAT WE OFFER, OUR, YOU KNOW, FOUR NEW CUSTOMER SOLUTION AREAS ARE BEING VERY WELL RECEIVED. SO, LISTEN, I HAVE A LOT OF CONFIDENCE. BUT YOU NEVER KNOW WHAT IS GOING TO HAPPEN. I MEAN, THIS IS A VERY DYNAMIC ENVIRONMENT, WHICH IS ONE OF THE REASONS WE THOUGHT IT WAS IMPORTANT TO BE SMALLER SO WE COULD BE MORE AGILE IN AN ENVIRONMENT THAT REQUIRES THAT.

FABER: STILL WITH A QUARTER OF A MILLION PEOPLE WORKING FOR THE COMPANY, YOU DID ANNOUNCE SIGNIFICANT JOB CUTS ABOUT A MONTH OR SO AGO, WHEN YOU GAVE – OR MAYBE A BIT MORE, SIX WEEKS – WHEN YOU GAVE US MORE DETAILS. IS THAT GOING TO BE IT FOR HPE?

WHITMAN: THAT SHOULD BE IT. I MEAN, THAT WILL ALLOW US TO RIGHT SIZE OUR ENTERPRISE SERVICES BUSINESS TO GET THE RIGHT ONSHORE/OFFSHORE MIX, TO MAKE SURE THAT WE HAVE A LABOR PYRAMID WITH LOTS OF YOUNG PEOPLE COMING IN RIGHT OUT OF COLLEGE AND GRADUATE SCHOOL AND EARLY IN THEIR CAREERS. THAT'S AN IMPORTANT PART OF THE FUTURE OF THE COMPANY. SO, IT SHOULD BE THE LAST THAT WE SEE. AND YOU KNOW, THIS WILL TAKE ANOTHER COUPLE OF YEARS AND THEN WE SHOULD BE DONE.

CARL QUINTANILLA: HOW ABOUT THE OUTLOOK FOR PCs? SORT OF THE HOLE IN THE DONUT TODAY, BUT – HOPE?

WHITMAN: YEAH. WELL LISTEN, I'M EXCITED ABOUT THE PROSPECTS FOR HP INC. DION WEISLER, THE CEO, IS A TREMENDOUS EXECUTIVE. HE KNOWS THE PC BUSINESS VERY WELL. HE HAS LEARNT THE PRINTING BUSINESS AND OF COURSE, ONE OF THE GREAT FRANCHISES IN CORPORATE AMERICA. BUT THE PC BUSINESS, THE LAST COUPLE OF YEARS, HAS BEEN PRETTY VOLATILE. IT'S BEEN UP ON THE BACKS OF THE WINDOWS XP REFRESH, IT'S BEEN DOWN. YOU KNOW, I THINK NEXT YEAR PROBABLY WILL BODE TO BE ANOTHER IMPROVING YEAR. SO WE'LL SEE. BUT DION HAS DONE WHAT MOST COMPANIES NEED TO DO, WHICH IS IN A DOWN MARKET, YOU HAVE TO GAIN SHARE. AND HE'S DONE THAT. SO YOU CAN'T ARGUE WITH HOW HE'S RUN THE COMPANY. IT'S JUST THE MARKET IS TOUGH RIGHT NOW.

FABER: MEG, IN YOUR REGULAR APPEARANCES HERE ALMOST QUARTER AFTER QUARTER, OF COURSE, SINCE YOU FIRST TOOK THE JOB, I WOULD OFTEN ASK YOU OK, WHEN ARE YOU GOING TO SEE GROWTH. YOU NEVER QUITE GOT THERE WITH THE COMBINED COMPANY. SO I'LL ASK THE QUESTION AGAIN NOW FOR THE MUCH SMALLER HPE. WHEN ARE YOU GOING TO SEE TOP LINE YEAR-OVER-YEAR GROWTH? AND I'LL GIVE YOU THE CURRENCY. YOU CAN TAKE THAT OUT OF THE EQUATION.

WHITMAN: OK. THANK YOU. THANK YOU FOR THAT. YEAH, SO YOU SHOULD SEE THAT IN 2016. AND ACTUALLY, IF YOU LOOK IN Q3, IF YOU JUST SEPARATE OUT HEWLETT-PACKARD ENTERPRISE, HEWLETT-PACKARD ENTERPRISE GREW IN CONSTANT CURRENCY. Q4, IT IS TOO, YOU KNOW, WE'RE IN A QUIET PERIOD, SO I CAN'T COMMENT. BUT YOU WILL DEFINITELY SEE GROWTH IN CONSTANT CURRENCY FOR HEWLETT-PACKARD ENTERPRISE IN 2016.

CRAMER: MEG, I HAD RICK HAMADA ON LAST WEEK FROM AVNET.

WHITMAN: YEAH. FROM WHERE?

CRAMER: FROM AVNET.

WHITMAN: YEAH. OH RICK HAMADA, YEAH.

CRAMER: YEAH HE'S GREAT. AND LISTENED TO STACY SMITH ON THE INTEL CALL. BOTH OF THEM – THEY WANTED TO COME THIS CLOSE TO SAY THAT PCs HAVE BOTTOMED AND TURNED UP. THEY DON'T WANT TO DO IT. NO ONE WANTS TO DO IT BECAUSE IT HAS BEEN SO WRONG. ARE YOU GOING TO YOU JOIN THAT? COULD BE?

WHITMAN: IT FEELS BETTER TO ME, RIGHT? IT REALLY DOES FEEL BETTER.

CRAMER: OK, ALRIGHT. THAT'S GOOD.

WHITMAN: AND I THINK IF DION WAS HERE, HE WOULD SAY HE'S SEEING SOME GREEN CHUTES THAT, YOU KNOW, WINDOWS 10 HAS ACTUALLY BEEN DOWNLOADED, YOU KNOW, MILLIONS AND MILLIONS OF TIMES. AND NOW PEOPLE ARE STARTING TO BUY NEW DEVICES WITH WINDOWS 10. I THINK WE WILL SEE THAT IN THE HOLIDAY SEASON. SO, YOU KNOW, I COULD BE WRONG, BUT IT'S FEELING MUCH BETTER OUT THERE.

FABER: AND YOU KNOW, WE'VE ASKED YOU A COUPLE QUESTIONS, OF COURSE, ABOUT THE PC BUSINESS. YOU ARE CHAIRMAN OF THAT COMPANY, CEO OF THIS ONE. HOW DO YOU SEE YOURSELF DIVIDING YOUR TIME? I KNOW THERE'S ONLY SO MUCH OF IT, AND I KNOW YOU'RE ALREADY WORKING MOST OF THOSE HOURS.

WHITMAN: YEAH. SO, I WOULD SAY THIS WILL BE PROBABLY 90% HEWLETT-PACKARD ENTERPRISE. BUT I WLL BE CHAIRMAN OF HP INC. AND YOU KNOW, BECAUSE I'VE BEEN A CEO FOR SO MANY YEARS, I KNOW THE ROLE OF THE CHAIRMAN AND I KNOW HOW IT'S DIFFERENT THAN THE ROLE OF THE CEO. THE CHAIRMAN IS NOT THERE TO RUN THE COMPANY. THE CHAIRMAN IS TO HELP THE BOARD BE PRODUCTIVE, HELP THE CEO BE SUCCESSFUL. AND WE HAVE A JOB TO DO FOR BOTH COMPANIES, BECAUSE WE HAVE TWO NEW BOARDS OF DIRECTORS, RIGHT? WE HAD TO HIRE 12 NEW BOARD MEMBERS. AND BOARDS HAVE CULTURES JUST LIKE COMPANIES. SO WE HAVE TO GET THE CULTURE OF THESE TWO BOARDS DIRECT AND ON POINT. AND THE FIRST MEETING IS ACTUALLY NEXT WEEK. SO, FOR BOTH COMPANIES. SO, MOST OF MY TIME WILL BE ON HEWLETT-PACKARD ENTERPRISE, BUT I WANT TO GET HP INC. OFF TO A GOOD START.

FABER: THERE YOU GO. A HISTORIC DAY AND OF COURSE, YOU HAVE GONE THROUGH SO MUCH HERE. IN FACT, YOU ARE GOING TO START SELLING YOUR SERVICES TO OTHER COMPANIES THAT WANT TO CONSIDER DOING, IN SOME WAY, WHAT YOU DID, CORRECT?

WHITMAN: YES, YES. ANY COMPANY THAT IS DOING M&A OR DIVESTITURE SHOULD HIRE US TO DO THEIR I.T. SEPARATION BECAUSE WE ARE THE BEST IN THE WORLD AT THIS.

FABER: THERE YOU GO. ALRIGHT, I GOT HER SALES PITCH IN THERE AS WELL. MEG WHITMAN, AS ALWAYS, THANK YOU.

WHITMAN: THANK YOU VERY MUCH.

FABER: AND CONGRATS. YOU'RE WELCOME.

WHITMAN: APPRECIATE IT. NICE TO SEE YOU AGAIN. THANK YOU, CARL. THANK YOU, JIM.

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