2024March 2024Uncategorized HPE advances long-term strategy, delivering strong profitability and scaling recurring revenue against market headwinds by Antonio Neri March 11, 2024 written by Antonio Neri Well-positioned to capture explosion of AI demand and continued opportunities in hybrid cloud and edge Today, HPE reported first quarter financial performance for fiscal year 2024. It was a mixed story for us, with some results to be proud of and some disappointments. Key takeaways from the quarter’s performance: We achieved strong profitability, while advancing our long-term strategy. We continued to scale our recurring revenue, achieving the second-highest year-over-year growth rate since we started tracking ARR [1] in late 2019 – which is a promising indicator for our ongoing portfolio shift to higher-margin revenues. Overall revenue performance was lower than expected due in large part to networking demand softening industry-wide, and the timing of several large GPU acceptances. We also did not have the GPU supply we would have liked. In quarters like these, I am reminded of the significant progress we have made in pivoting our portfolio to position us to capture significant opportunities across edge, hybrid cloud, and AI. The transformation we have made across our businesses was critical and well timed, and it has served us well and will continue to ensure we manage through market fluctuations and continue to strengthen our competitive position. Strategic investments in the edge advancing market position Over the last several quarters, we have gained share in the campus networking markets, and we are seeing strategic investments in this area pay off. Most recently, we have seen strong growth in SASE, an offering we bolstered with our acquisition of Silver Peak in 2020 and Axis Security in 2023. In Q1, our Intelligent Edge revenue grew 2% in constant currency year-over-year [1] to $1.2 billion, though demand eased. Customers are taking longer to digest prior orders than we had anticipated, which partially offset the benefit of our networking backlog entering the quarter. We expect weakness in the networking market to persist, with some improvement in late fiscal 2024, as inventory clears and customers such as U.S. state and local education buyers enter their IT purchasing season. As we look ahead to the future of this market, we are excited about our pending Juniper Networks acquisition. Combining our complementary portfolios will supercharge HPE’s edge-to-cloud strategy, accelerating our entire portfolio with AI-enabled innovation. When our proposed acquisition closes, we will create a new networking innovator with a comprehensive portfolio for customers and partners. HPE GreenLake hybrid cloud platform gaining traction Our HPE GreenLake hybrid cloud platform continues to resonate in the marketplace and was the primary driver of our highest Q1 year-over-year rise in ARR. Our ARR [1] grew 41% in constant currency year-over-year [2] to more than $1.4 billion in Q1, and we continue to expect ARR growth of 35% to 45% as we look ahead. We are steadily advancing our HPE GreenLake hybrid cloud platform services. Earlier in the quarter, we announced an expanded HPE GreenLake for File Storage offering that is designed for GenAI. This solution, which is highly differentiated through a high-performing file system solution specifically designed for AI applications, better positions us to take market share in storage by addressing the previously underserved segment of the file market. Our innovation continues to attract customers to the HPE GreenLake platform, which now connects 3.8 million network devices and supports more than 31,000 customer organizations – up approximately 8 percent from last quarter. Capturing exploding AI demand In AI, we are capturing the explosion in demand for AI systems. APU orders represent nearly 25 percent of our total server orders since the first quarter of fiscal 2023. Our pipeline is large and growing, and we are starting to see AI pull through demand for other solutions, including storage. While AI server demand remains very strong, GPU availability is tight, and our delivery timing has also been affected by the increasing length of time customers require to set up the data-center space, power, and cooling requirements needed to run these systems. In Q1, we expanded our strategic collaboration with NVIDIA targeting the enterprise segment of the market. We introduced a pre-configured solution for enterprise customers to fine-tune AI large language models with their private data to accelerate inferencing. Our HPE Machine Learning Development Environment software and unique HPE supercomputing IP are critical parts of the pre-configured solution, alongside NVIDIA AI Enterprise software. We have built a strong and growing sales pipeline for this new offering. The opportunity in front of us There is no question that Q1 brought some unanticipated challenges, but it also brought reminders of why the markets we’ve chosen to prioritize hold a great deal of promise. Our customers continue to look to HPE to deliver innovation and experiences from edge to cloud, and we will strive to exceed their expectations. We will execute with discipline, manage costs, and continue to invest in differentiated offerings that will set us apart from the competition. We have incredible opportunities ahead of us this year. We look forward to advancing our winning strategy, which has never been more relevant than it is today. I am confident we can deliver a strong 2024 for our customers, partners, team members and shareholders. This blog contains forward-looking statements subject to risks; results could differ materially. For more cautionary language regarding forward-looking statements, refer to the earnings presentation at investors.hpe.com. [1] For definition of ARR, please refer to the earnings presentation at https://Investors.hpe.com. [2] Reconciliation of specific adjustments to GAAP results for the current and prior periods and description of HPE’s use of non-GAAP financial information are included in the earnings presentation at https://Investors.hpe.com. This article originally appeared on the HPE Newsroom. March 11, 2024 0 comment 0 FacebookTwitterPinterestEmail
Software Defined & CloudUncategorized Hybrid cloud approach and incorporating HPE Greenlake by Chris Purcell March 6, 2024 by Chris Purcell March 6, 2024 There was an interesting slice of news that came out during the HPE Discover event in Barcelona late November. It was the about improve ways to automate ITOps, which announced the foundational APIs for the HPE GreenLake edge-to-cloud platform. The HPE GreenLake platform now enables users to automate operations … 0 FacebookTwitterPinterestEmail
AIAI-driven infrastructureArticlesEnews5-2FeaturedHPE GreenLakeUncategorized Modern file storage accelerates the AI-driven search for cures by Support-User August 31, 2023 by Support-User August 31, 2023 The hunt for new cures and treatments is at the leading edge of life sciences research. HPE GreenLake for File Storage delivers the next-gen file storage needed to accelerate that search. Learn how.–David Yu, HPE Storage Product Marketing In recent decades, experts in life sciences and healthcare have made … 0 FacebookTwitterPinterestEmail
ArticlesC2 Fall 2022 Modernize the hospital data center with personalized healthcare IT by Rich Bird October 16, 2022 by Rich Bird October 16, 2022 Until recently, the traditional hospital data center featured a conventional three-tiered infrastructure, where compute, storage, and network resources were all managed separately. This environment required multiple IT staff with specialized skills—a luxury many hospitals do not have. But times are changing. Personalized medicine is already here Today’s approach … 0 FacebookTwitterPinterestEmail
ArticlesC2 Summer 2022 Unlocking the potential of AI Solutions @ Discover 2022 by Frederic Van Haren June 20, 2022 by Frederic Van Haren June 20, 2022 For the last few years, we have had to enjoy HPE Discover from the comfort of our homes. This year we are back in Las Vegas for HPE Discover 2022, as the “Edge-to-Cloud” conference. However, I must say that I did miss the interaction with customers, colleagues, and competitors. 0 FacebookTwitterPinterestEmail
ArticlesC2 Summer 2022 Learn how HPE GreenLake can transform your business: Must-see sessions at HPE Discover by Hewlett Packard Enterprise June 20, 2022 by Hewlett Packard Enterprise June 20, 2022 At HPE Discover 2022, the Edge-to-Cloud Conference, you’ll find the best of edge, cloud, and everything in-between – all in one place! Once again, you can attend the event LIVE in Las Vegas, June 28-30, 2022, or choose to participate virtually. From the latest insights in secure connectivity, to … 0 FacebookTwitterPinterestEmail
ArticlesC2 Summer 2022 What not to miss at Discover 2022: Small and midsized business by Martin Oderinde June 10, 2022 by Martin Oderinde June 10, 2022 Join us at HPE Discover 2022, our premier event, to learn how HPE can help you power your next chapter with affordable and modern IT solutions that work for your SMB. 0 FacebookTwitterPinterestEmail
ArticlesC2 Spring 2022CloudDevOpsHPE GreenLake Infrastructure-as-code on HPE GreenLake using Terraform by Didier Lalli March 27, 2022 by Didier Lalli March 27, 2022 Setting up a API Client access Next, you need to create a new API Client access dedicated to Terraform. You can do this from the HPE GreenLake console under your settings icon, identity & Access, and then the API Clients tab. Create a new API Client (hpedev-hackshack-terraform in the … 0 FacebookTwitterPinterestEmail
ArticlesC2 Winter 2021CloudDataData StorageEdge-to-CloudHPE GreenLake HPE GreenLake edge-to-cloud platform brings the cloud to you by Flynn Maloy December 6, 2021 by Flynn Maloy December 6, 2021 After years of working in cloud environments, we’ve come to expect some basics that we collectively refer to as the “cloud experience.” For example, scalable capacity that’s ready when you need it, and the ability to easily click and spin up new instances. In short, we expect a point-and-click … 0 FacebookTwitterPinterestEmail
C2 Winter 2021Editors' Picks Maximize your cloud experience everywhere by Alexey Gerasimov December 6, 2021 by Alexey Gerasimov December 6, 2021 I often get asked if people really care about Hybrid Cloud. Of course, customers do. Not only do they care, but it’s also the reality. According to the latest State of the Cloud report from Flexera, 80% of customers agree that they will operate in a Hybrid Cloud going … 0 FacebookTwitterPinterestEmail