Hewlett Packard Enterprise, which describes itself as “a global, edge-to-cloud Platform-as-a-Service company,” will move it’s corporate headquarters from  San Jose, CA to Houston, Texas. 

It plans to build a new state-of-the-art campus in the northern Houston suburb of Spring, and is expected to open in early 2022.

Its major product development, services, manufacturing, and lab facilities are already based in Austin and Houston, which alone employs 2,600 people. HPE also has existing operations in Plano.

Hewlett Packard Enterprise joins more than 50 Fortune 500 companies headquartered in the Lone Star State, including 22 in the Houston area alone, according to The Center Square.

Antonio Neri, CEO of HPE, said in the article that one of the reasons for relocating its global headquarters to the Houston area from San Jose is because Houston “has an attractive market to recruit and retain future diverse talent.” It was also a strategic move, as the company looks to the future and evaluates its “business needs, opportunities for cost savings, and team members’ preferences about the future of work.”

CNBC notes HPE’s departure from the Silicon Valley is historically significant.

“The coronavirus pandemic has given a number of tech companies and prominent Silicon Valley figures an excuse to exit California,” Jessica Bursztynsky, CNBC, writes. “Without many needing to go into an office every day, many are questioning the high cost of living and the state’s hefty taxes amid a broader shift to remote work. But HPE’s move is particularly notable because Hewlett-Packard was one of the original Silicon Valley success stories, founded by partners Bill Hewlett and Dave Packard in a garage in Palo Alto in 1939.”