In this Cloud Wars Horizon Minute, episode 74, Tom Smith explains how HPE (Hewlett Packard Enterprise) is driving strong financial results. This is the result, in large measure, of its successful hybrid cloud strategy, which is based on the company’s “edge-to-cloud” GreenLake platform.
00:18 — Today’s discussion will focus on how HPE is driving some of the best financial results you’ll see.
00:30 — The company significantly exceeded quarterly revenue forecasts and raised its outlook going forward. ARR of $936 million is an increase of 17% vs. the year-earlier period; adjusted for currency, the increase is 25%.
01:02 — Executives cited strong demand, successful supply chain and pricing actions that contributed to results, and confidence that the actions already taken position HPE for success in the quarters to come.
01:25 — CEO Antonio Neri said: Greenlake “has enhanced our financial profile with more resilient recurring revenue. Our portfolio is steadily becoming richer in software and services.”
02:00 — “It is clear that customers view their data-first digital transformation as critical to their success and are prioritizing hybrid cloud solutions to propel them forward.” He added that Greenlake has a central role to play there
02:35 — The company’s CFO said the results show it has executed a successful transition that is substantially complete — a cost optimization and resource allocation program announced during the pandemic of 2020 achieved annual savings of $875 million, well above the $800 million target
02:54 — Also noteworthy: The company announced an alliance in early November with VMware, whereby the partners will bring together HPE GreenLake and VMware Cloud to deliver full integration that enables a simple pay-as-you-go hybrid cloud consumption model. Given each company’s existing footprint in the enterprise, this alliance should help HPE continue its momentum in 2023.
For more exclusive coverage of innovative cloud companies, check out Cloud Wars Horizon here: