AWS’ Validation of The GreenLake Strategy
Hewlett Packard CEO Antonio Neri said Amazon Web Services this week in effect validated the HPE GreenLake pay-per-use on-premises cloud services strategy by acknowledging that 96 percent of IT spend is still on-premises.
“If you covered AWS [Reinvent], you heard AWS saying that 96 percent of the spend is still outside the cloud,” said Neri in an interview with CRN. “They spoke about hybrid for the first time in a very open way, and that is a validation of our strategy. Obviously, GreenLake is a point of differentiation that we have had for some time and you can see the momentum.”
Neri’s comments came after AWS CEO Andy Jassy Tuesday referenced market researcher Gartner estimates that 96 percent of the current total IT spend is still on-premises, with only 4 percent in cloud.
“We keep reminding ourselves that we‘re part of a much broader IT global market segment,” said Jassy in his AWS Reinvent keynote session. “If you look at the total amount of global IT spend that’s in the cloud, it’s only 4 percent at this point. All that said, if you believe, like we do, that the vast majority of computing is moving to the cloud in the fullness of time in the next 10 to 20 years, and you see incredible growth in the cloud, it means that there’s a lot of growth ahead of us.”
Neri also sees strong growth ahead for HPE’s GreenLake on-premises cloud service. In fact, HPE—which reported a 20 percent increase in GreenLake cloud services orders in the most recent quarter—is forecasting 30 percent to 40 percent compound annual growth rates for the GreenLake as-a-service business from fiscal year 2020 to fiscal year 2023.
