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Antonio Neri On HPE's Greenlake Advantages Vs. AWS Outposts

HPE CEO Antonio Neri spoke with CRN about Amazon Web Services’ first entry into the on-premises server market with AWS Outposts and HPE Greenlake's open, multicloud, multistack hybrid IT advantage versus the public cloud behemoth.

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AWS - Welcome To The Hybrid IT Market

Hewlett Packard Enterprise CEO Antonio Neri "welcomed" Amazon Web Services to the hybrid IT market in the wake of the public cloud behemoth's introduction of AWS Outposts.

"I am really, really happy that AWS made that statement (on hybrid IT) because it validated our strategy," said Neri, who along with former HPE CEO Meg Whitman put in place HPE's hybrid IT strategy three years ago. "(HPE Board member) Meg (Whitman) and I at that time said the world would be hybrid. They validated last week that the world is hybrid."

AWS surprised the industry by endorsing the on-premises hybrid IT market with its launch last week of AWS Outposts – fully managed and configured compute and storage racks built with AWS-designed hardware that can run in a customer's on-premises environment. AWS Outposts is not set to be delivered until the second half of next year.

"Customers are looking for openness – not lock in," said Neri, responding to the AWS Outposts announcement. "They want true multi-cloud and multi-stack. We are offering that alternative plus the same consumption-based model on-prem with HPE Greenlake, which is our flagship product. To give you some perspective, we have more than 400 customers on Greenlake and more than $2 billion in total contract value."

Neri's comments came after HPE posted better-than-expected results for its fourth fiscal quarter ended Oct. 31 with Aruba intelligent edge sales up 17 percent; compute sales up nine percent; storage sales up six percent and HPE Greenlake pay per use consumption orders up 30 percent.

HPE also delivered strong performance for the full 2018 fiscal year – Neri's first fiscal year since he took the helm last Feb. 1- with higher than expected sales growth of seven percent to $30.9 billion. That full-year sales growth was led by 13 percent growth in the intelligent edge business; 13 percent growth in the storage business; nine percent growth in value compute offerings including 25 percent growth in high performance compute and 280 percent growth for Synergy composable systems with a more than $1 billion annual run rate; and 54 percent growth for HPE Greenlake.

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