Hewlett Packard Enterprise is “sprinting forward” with an Everything-as-a-Service channel model that is “years ahead” of competitors like Dell Technologies and Cisco Systems, which recently signaled their intent to move lock, stock and barrel into the Everything-as-a-Service channel game, said HPE Senior Vice President and GreenLake Cloud Services General Manager Keith White.
“We are years ahead,” said White in an interview with CRN in which he pledged to triple HPE’s GreenLake channel investment for the new HPE fiscal year, which starts Nov. 1. “We have worked through a lot of the kinks. It’s easy to just say you are going to be an as-a-service company but [HPE President and CEO] Antonio [Neri] put the stake in the ground a couple of years ago [to move the complete HPE portfolio to as a service by 2022], and we are aggressively moving toward that.”
Dell Technologies CEO Michael Dell told CRN in September that Dell is in the process of rolling out as-a-service consumption-based models for its massive portfolio of PCs, servers, storage, networking, end-user computing and hyperconverged infrastructure solutions.
Cisco CEO Chuck Robbins has also signaled an Everything-as-a-Service shift, telling analysts in August that the tech giant wants to move its entire portfolio to a consumption-based model in the wake of the COVID-19 pandemic.
HPE, for its part, has been honing the channel model for GreenLake—which started out as HPE Flex Capacity in 2016 and morphed into the much-heralded GreenLake 2.0 release in 2018 with a robust 17 percent up-front rebate for partners.
HPE’s partner profitability on the GreenLake pay-per-use model is unmatched, according to partners.
White, for his part, said HPE is committed to delivering the best profitability for the channel for Everything as a Service. “I am committed to making sure our partners are the most profitable,” he said. “Our whole mindset is how do we go through and with our partner ecosystem to deliver these to our customers. To do that, we have to not only provide them with the most profitability we have to provide them with the tools and resources required to be successful.”
White said competitors provide lower commissions but also do not pay out the 17 percent commission rebate up front. “We give it based on the order that partners receive,” he said. “This isn’t happening later when it gets installed, delivered or when the customer starts to use something.”
White said HPE is making an all-out GreenLake partner sales blitz in the new fiscal year backed up with new GreenLake sales specialists including a call center team charged with driving new logo wins with partners.
“I have huge expectations for the channel in fiscal year 2021, but I am also going to put our money where our mouth is and make sure they have the resources, tools, enablement, incentives and people to help them be successful,” said White.