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HPE CEO Antonio Neri: Faster Everything-As-A-Service Shift Means More ‘Long-Term Money’ For Partners

HPE CEO Antonio Neri says moving faster to an everything-as-a-service model will result in “sustainable, long-term profitable growth” with the opportunity for the channel to make more “long-term money.”

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A ‘New World’ For Partners

Hewlett Packard Enterprise CEO Antonio Neri says the company is moving faster with its edge-to-cloud everything-as-a-service shift to drive “sustainable, long-term, profitable growth” with HPE partners.

“We are here to help partners get ready for this new world,” said Neri in an interview with CRN after HPE Thursday unveiled a three-year “Cost Optimization and Prioritization Plan” aimed at delivering gross savings of $1 billion with changes to its workforce, real estate model and business processes. “Ultimately it is about how partners drive the profitability of their business because we have the best Partner Ready program with the best economics. Our intent is to continue to grow together with sustainable, long-term, profitable growth.”

HPE is accelerating its edge-to-cloud everything-as-a-service sales offensive in the wake of the “economic disruption” from the global COVID-19 pandemic, said Neri.

Overall, HPE reported non-GAAP earnings of 22 cents per share on a 16 percent decline in sales to $6 billion for its second fiscal quarter, ended April 30. Despite the pandemic, HPE reported a 17 percent increase in its GreenLake annualized revenue run-rate business to $520 million and a 12 percent increase in Aruba HPE’s Intelligent Edge business in North America.

HPE has committed to shift its entire portfolio to an everything-as-a-service model by 2022. Neri told CRN that he “absolutely” wants to get to that model as quickly as possible.

“When you go through these challenges and you have conviction in your strategy you need to go faster,” he said. “Remember we used to say the future belongs to the fast. That is exactly what this is. The future belongs to the fast. We have an opportunity to accelerate what is next, … to provide an edge-to-cloud platform that can be consumed as a service. We have the assets. We have the talent. We just need to go faster. That is why reallocating resources in growing areas is essential.”

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