Hewlett Packard Enterprise (HPE) is moving its headquarters to Houston, Texas, a reflection of the changes COVID-19 has brought.

In 2015, Hewlett Packard split into two companies. The original PC and printer division continued on as HP, Inc. HPE, on the other hand, focused on cloud services, software and IT infrastructure.

Antonio Neri, President and CEO, announced the plans to relocate headquarters from Silicon Valley to Houston, Texas. HPE already has a presence in Texas, with it being its largest employee site.

As we look to the future, our business needs, opportunities for cost savings, and team members’ preferences about the future of work, we have made the decision to relocate HPE’s headquarters to the new campus under construction in Spring, Texas, just outside of Houston.

The move is, at least in part, in response to the changes the COVID-19 pandemic has brought. Employees have become more accustomed to working remotely, leading to HPE embracing more flexibility. This, in turn, has caused the company to reevaluate its real estate strategy.

Houston fits in well with HPE’s long-term goals. As the fourth largest city, Houston is also the most diverse. This gives the company a broad pool from which to recruit. HPE is currently constructing a 440,000 square-foot campus that is expected to be operational in 2022. Neri emphasized relocation will be entirely voluntary, and there are no layoffs associated with this move.

At the same time, the company will keep its presence in Silicon Valley:

We aren’t leaving Silicon Valley, a region inextricably linked to our rich history and heritage since Bill and Dave founded Hewlett Packard. Our San Jose campus will remain a hub for technological talent and innovation.

Notably, San Jose will become the new headquarters for our Aruba Intelligent Edge business. The explosion of devices, applications and data at the edge continues to drive demand for secure connectivity, and through our Aruba business, we are uniquely positioned to take advantage of the $39 billion edge market opportunity, which the pandemic has only accelerated with the need for digital workplace solutions.

Neri is optimistic the decision was the right one, at the right time:

Given our company’s long history in the region, this move makes sense for HPE. The world has changed, and we are changing with it for the benefit of all of our stakeholders.