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CEO Antonio Neri On Why HPE GreenLake Is Competing ‘Mostly’ With Public Cloud, Not Dell Apex

Hewlett Packard Enterprise CEO Antonio Neri told CRN he is not seeing the Dell Apex as-a-service offering in the channel as HPE ends its fourth fiscal quarter with a 114 percent increase in as-a-service orders.

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Hewlett Packard Enterprise is competing head-on ‘mostly’ against public cloud providers like Amazon Web Services and Microsoft Azure and is not seeing long-time rival Dell in the as-a-service channel sales trenches, said CEO Antonio Neri in an interview with CRN.

“Customers are looking at public cloud or keeping it on-prem with a cloud experience on GreenLake,” he said. “In an account or two we have seen [Dell] Apex having a discussion, but not at scale and definitely I have not seen it through the channel.”

Neri’s comments came after Houston-based HPE Tuesday reported a banner quarter for its GreenLake on-premises cloud service, with as-a-service orders up 114 percent compared to the year-ago quarter.

The company ended fiscal year 2021 with its annualized revenue run-rate (ARR)—a key measure of GreenLake success—up 36 percent year over year to $796 million. HPE is targeting an ARR compound annual growth rate of 35 percent to 45 percent to $2.3 billion in fiscal year 2024.

“We already have $800 million of [ARR]. That takes years to build,” Neri said. “That is by far the largest ARR of any on-premises vendor on the planet, even NetApp. Dell is not even disclosing [ARR] because probably there is nothing to disclose at this point in time.”

HPE is gearing up for the March launch of GreenLake.HPE.com, a new platform that effectively unites all of HPE’s edge-to-cloud GreenLake as-a-service and subscription offerings into a single platform that includes partners, said Neri.

The initial launch will include five unnamed partners that have fully integrated their own services via open APIs into GreenLake.HPE.com, said Neri, with HPE’s aim to add all partners to the platform.

“I would like to see 100,000-plus partners on that platform doing business in a way they haven’t imagined before,” said Neri. “When you are growing as a service at 114 percent, that tells you that is the business of the future. When you deliver a full year of 61 percent growth [in as a service business], you want to go there. The numbers speak for themselves.”

The GreenLake.HPE.com breakthrough completes a journey that began two years ago with Neri pledging to offer the complete HPE portfolio in an as-a-service platform. That is expected to make HPE a more formidable competitor against its public cloud rivals.

“The good news is whether partners sell transactions, subscription or consumption, they will be able to run their entire engagement with Hewlett Packard Enterprise through the same platform called GreenLake.HPE.com,” said Neri. “The quote-to-cash for GreenLake.HPE.com is the same system that we have been working on for the last two years.”

For partners, the GreenLake.HPE.com platform opens the door to “take advantage of all the telemetry and scaling capabilities of the [GreenLake] platform with billing, metering and the quote-to-cash which will be totally simplified for them,” said Neri.

“Overall I would say this has been a home run,” said Neri discussing HPE’s as-a-service growth over the last fiscal year, with 300 new GreenLake customers added during fiscal year 2021. “We believe we have years of advantage [in lead time over competitors].”

 
 
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