HPE’s as-a-service Advantage
HPE CEO Antonio Neri says the company’s as-a-services prowess and technology innovation with offerings like HPE Ezmeral is driving an HPE edge to cloud platform as-a-service advantage for partners that competitors can’t match.
“We offer the most comprehensive portfolio in the market and we bring it together in an as-a-service model where partners not only make money up front but also on the lifecycle of the deal,” said Neri in an interview with CRN after HPE posted better than expected results for its third fiscal quarter ended July 31. “In many cases they get to serve those customers themselves and then add their own services on top of it.”
HPE’s GreenLake on-premise cloud service is now growing faster than public cloud with a “record-breaking” 82 percent growth in service orders in the most recent quarter, said Neri.
“When you look at the performance of public cloud vendors nobody grew at 82 percent,” said Neri. “The reason we are doing well is we provide a true hybrid experience. Cloud is not a destination. It is an experience. Seventy percent of the apps and data are still on-prem, and more and more apps and data is moving to the edge. Customers want a true consumption driven model from edge to cloud. GreenLake offers that in an automated way.”
Microsoft Azure revenue grew at a 47-percent clip in the most recent quarter followed by 43 percent for Google Cloud and 29 percent for Amazon Web Services.
With the addition of other HPE sales added to the GreenLake service orders, the pay-per-use platform is growing at 100 percent clip, said Neri.
HPE signed several of its largest GreenLake orders in its history in the quarter including a blockbuster $27 million digital transformation deal with LyondellBasell – one of the world’s largest producers of plastic resins, said Neri.
In wake of the strong GreenLake results, HPE reiterated its guidance of a 30-40 percent compounded annual growth rate for GreenLake ARR from fiscal year 2019 to fiscal year 2022.
Overall in the quarter, HPE posted better than expected results with non-GAAP earnings of 32 cents per share on a 13 percent sequential increase in sales to $6.82 billion. That is well above the Wall Street consensus of 24 cents per share on sales of $6.14 billion, according to Zacks.
“It was a good strong quarter for us,” said Neri. “We see the results of the hard work we put in in the last 90 days together with our partners. I am very pleased with the outcome.”