Cloud News

Antonio Neri: HPE GreenLake Is Resonating As ‘True Alternative To Public Cloud’

Steven Burke

Hewlett Packard Enterprise CEO Antonio Neri said GreenLake is resonating with customers as a “true alternative to public cloud,” with a whopping 152 percent increase in channel orders in the most recent quarter.

GreenLake Momentum Is Accelerating

Hewlett Packard Enterprise CEO Antonio Neri said HPE’s on-premises edge-to-cloud platform as a service is resonating with customers frustrated by the limitations of public cloud.

“Everyone is seeing GreenLake as a true alternative to public cloud for those workloads that must stay on-prem,” said Neri in an interview with CRN Thursday following the release of the Houston-based company’s fiscal third quarter financial results. “Also, in many cases they are repatriating workloads to on-prem. But it is all driven by data gravity. They struggle with the data aspect of this with regard to where to put the data so it is in compliance, the latency component of this [is also an issue].”

Neri said many customers are realizing that public cloud is the equivalent of the “Hotel California—you can check in, but never check out,” referencing the famous Eagles song.

What’s more, he said, there is in many cases a single point of failure with public cloud. “If something happens you have no backup,” he said. “We can actually give customers a true hybrid experience—being off prem, on-prem and give them a true hybrid estate, and to be able to use technology like Zerto, for example, which is not just about data protection for ransomware, but also to drive portability of workloads back and forth. That to me is very, very important.”

Neri this week promised a “massive acceleration” of the GreenLake business over the next six months as HPE takes its edge-to-cloud platform as a service to new heights versus public cloud providers with a breakthrough front-end experience.

“Between now and March you are going to see a massive acceleration [of GreenLake],” said Neri. “That’s why it’s my No. 1 priority.”

Overall, HPE reported non-GAAP earnings of 47 cents per share on sales of $6.89 billion for its third fiscal quarter, ended July 31. Earnings were above the Wall Street consensus of 42 cents per share.

HPE reported a 46 percent increase in as-a-service orders and a 33 percent increase in annualized revenue run-rate (ARR)—a critical measure of GreenLake’s success—to $705 million. HPE also reiterated its ARR guidance of 30 percent to 40 percent compound annual growth rate from Fiscal Year 2020 to Fiscal Year 2023.

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