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Antonio Neri: Outposts Is AWS’ Bid To Lock Data In Public Cloud

‘To me, Outposts is just a way to continue to lure you to move to the [public] cloud because their ultimate objective is to move your data to the [public] cloud,’ says HPE President and CEO Antonio Neri. ‘We have this saying: When you check into the public cloud, it is like checking into the Hotel California. You check in and you never check out. What customers are realizing now is that the cost of egressing that data back is enormous. Enormous.’

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As you look at the HPE acquisitions–15 over the last two and a half years– how many more puzzle pieces are there to put in there and what is the picture going to look like?

As I said, the innovation comes in three forms [organic, partnerships and acquisitions]. Obviously from a shareholder perspective, they want to know you are investing dollars wisely and you are not doing anything stupid.

We have a very stringent return on invested capital. But if we have conviction that a particular asset is incredibly strategic to us, we will pursue it. The Cray acquisition is a great example. So is Aruba.

Because of the transformation we drove in the last seven years it gives us the ability to move faster, to allocate capital in a better way and ultimately to be much more refined in where we play and how we win versus just buying stuff that does not come together. For us, driving that experience in that architecture that is open is important and then, where it makes sense, we will pursue it.

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