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CEO Antonio Neri On Why HPE ‘Outperformed’ Dell, Cisco

'We outperformed every single competitor,' says HPE CEO Antonio Neri. 'Everyone that was put in front of us we beat them this quarter. Cisco was down. Arista was down. Juniper was down. Ruckus was down. Ubiquiti was down. We were the only one that had a plus in front of it.'

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What were the supply chain constraints in the quarter?

Mostly for us it was the traditional NAND [SSD] and some CPUs. We couldn’t get what we needed despite best efforts on both sides. I have great relationships with each of the suppliers, and I personally engaged with each of them. This is the challenge that this industry sometimes goes through. We are working with them right now to make sure we get what we need. I am cautiously optimistic, but they have to go through their own process.

On the PCBs [printed circuit boards] and PCBAs [printed circuit board assemblies] it is a more recent challenge as of February and March because of the coronavirus. That is because most of the PCBs and PCBAs are built in China.

But it was mostly the usual suspects. To build a server you need a CPU and a bunch of SSDs and we didn’t have enough of those to allow us to meet the demand. That is why we enter Q2 with a higher backlog than we normally would have.

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