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HPE CEO Antonio Neri: Why VMware Cloud On Dell EMC Is ‘Irrelevant’

HPE CEO Antonio Neri says VMware Cloud on Dell EMC lacks the DevOps and pay-per-use public cloud-like capabilities of HPE GreenLake.

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HPE GreenLake Is Paying Off For Partners

Hewlett Packard Enterprise CEO Antonio Neri said the company’s GreenLake pay-per-use model is paying off for partners and customers.

In fact, Neri said that the shift to higher margin offerings like GreenLake is driving an increase in partner profitability.

That transition to higher recurring revenues was one of the highlights of HPE’s fiscal third quarter results with the company reporting a robust 34 percent year over year increase in gross margin. “What that means for partners is they are making more money,” said Neri in an interview with CRN. “That is the bottom-line.”

Overall, HPE said GreenLake sales in the quarter grew at 10 percent year over year. Excluding one large deal from the year-ago quarter, GreenLake sales were up 42 percent in the quarter. HPE GreenLake sales through partners was up 112 percent in the quarter.

“We continue to see high double digits or triple digit (growth in channel sales of GreenLake) in some cases depending on the tier of the channel partner on the adoption of GreenLake,” said Neri.

HPE GreenLake is now one of HPE’s fastest growing businesses,said Neri. “Customers are choosing HPE GreenLake for choice, flexibility and speed to market,” he said.

HPE stepped up its pay-per-use sales offensive with the launch this week of VMware Cloud Foundation on GreenLake, running on HPE’s breakthrough Synergy composable infrastructure. Sales of HPE Synergy composable cloud infrastructure were up 28 percent year over year in the quarter.

Dell Technologies, for its part, attempted to steal the thunder from HPE GreenLake by announcing at VMworld that its Cloud Data Center-as-a-Service offering—running VMware Cloud on Dell EMC infrastructure —is publicly available in the U.S. The Dell offering is based on its VxRail hyper-converged enterprise-grade platform.

Neri has committed to transforming the entire HPE portfolio to an Everything-as-a-Service model by 2022. His rallying cry to partners: “Follow our lead and you will make more money in the areas ultimately customers are shifting to.”

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