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Antonio Neri: Why HPE Is Beating Cisco, Dell At Edge

HPE CEO Antonio Neri says rivals Cisco and Dell simply do not have the assets to go head-to-head with HPE at the intelligent edge.

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HPE’s Big Intelligent Edge Bet is ‘Paying Off’ In Share Gains

Hewlett Packard Enterprise CEO Antonio Neri said the company’s big bet on edge-to-cloud platform as a service is “paying off” with 11 percent growth in the intelligent edge business in the most recent quarter and networking share gains expected in both wireless LAN and campus switching.

“This was the best performance of any networking vendor out there,” said Neri in an interview with CRN Tuesday after HPE posted better-than-expected results for its first fiscal quarter, ended Jan. 31. “I think it is because we have something very special. We have a cloud-native solution with a subscription model that allows you to get access to any kind of connectivity you need to deliver this edge-to-cloud vision. That momentum will continue throughout the year. And remember, 95 percent of that business goes through the channel partners.”

The “differentiated” HPE intelligent edge strategy resulted in triple-digit sales growth in SaaS revenue for HPE’s Aruba networking unit, contributing to $806 million in sales in the intelligent edge business compared with $720 million in the year-ago quarter.

Aruba has now delivered three consecutive quarters of growth and five quarters of margin expansion. The intelligent edge business reported an 18.9 percent operating profit margin compared with 12.1 percent in the year-ago quarter.

“We again expect to take market share in both campus switching and wireless LAN segments of the market,” said Neri. “We are seeing continued traction from our investment at the edge, including rich software capabilities like our Aruba Clearpass security, our cloud native Aruba Central and, most recently, Aruba Edge Services Platform.”

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