“Partners recorded more HPE GreenLake orders in the fourth quarter than before, extending their order growth streak to 22 consecutive quarters,” said HPE CEO Antonio Neri.
Hewlett Packard Enterprise channel partners delivered record results for HPE GreenLake cloud service last quarter with sales up more than 70%, outpacing HPE’s direct sales of pay-per-view platform rapidly growing usage, said HPE CEO Antonio Néri.
“Partners recorded more HPE GreenLake orders in the fourth quarter than ever before, extending their order growth streak to 22 consecutive quarters,” Neri said in a conference call with financial analysts. after HPE reported better-than-expected sales growth of 7% (12% currency-adjusted) to $7.9 billion for its fiscal fourth quarter, ended October 31.
Robust partner growth was accompanied by HPE attracting more new customers to the GreenLake platform in the fourth quarter than in any previous quarter. HPE ended the fiscal year with twice as many new customers with the HPE GreenLake logo than in the previous fiscal year.
[Related: HPE Taking GreenLake To ‘Next Level’ By Integrating It Into Overall Business; EVP Keith White To Take On ‘New Role’]
HPE’s annualized revenue execution rate (ARR), a key measure of GreenLake adoption, increased 17% (25% at constant currency) to $936 million, even amid constraints supply chain that continued to limit some GreenLake facilities.
“We expect an improved supply environment to accelerate our ARR growth,” Tarek Robbiati, HPE executive vice president and chief financial officer, said on the call.
HPE reiterated its estimate of 35-45% compound annual growth for ARR from fiscal year 2022 to 2025.
Total HPE as a service orders increased 33% in the quarter compared to the same period a year earlier. For the full year, HPE orders as a service increased by 68%.
Neri said the record performance of partner GreenLake was even with high comparisons to the prior year period. “This was the quarter where we did the most business with HPE GreenLake, with our partners seeing over 70% growth, reaching really big numbers,” he said in an interview with CRN following the call.
Neri said the strong results are proof that the HPE GreenLake edge-to-cloud platform is resonating with customers due to its strong market differentiation.
“All the hard choices in the transformation we drove from IT to process to go to market are paying off now,” Neri said. CRN. “It’s a confluence of many things coming together. It gives us momentum as we enter 2023, and partners are at the forefront as they drive more business through HPE GreenLake than ever before. You you can see that they are growing faster than our direct business.”
Details of GreenLake’s Successful Distribution Partners
PKA Technologies, one of HPE’s key partners, expects a record year in the new fiscal year with the GreenLake deals, said PKA Vice President of Sales Paul Cohen.
In fact, the tougher macroeconomic environment with the threat of a recession is causing many companies to consider migrating their workloads to the cloud service using HPE Greenlake, Cohen said.
“GreenLake is more attractive during a downturn in the economy because customers can move projects forward without capital expenditures,” he said. “We believe we are going to have a fabulous year with GreenLake in 2023. Our pipeline continues to grow. When it comes to companies spending precious money, they prefer to lock in a rate for three, four or five years. This allows them to budget their Opex expenses. It’s predictable, and they’re not short on cash. They can keep their money to be more competitive. As clients become increasingly uncertain about the economy but must continue to grow their own business, GreenLake is the perfect solution.
The combination of Montvale, NJ’s PKASolveIT managed services business and GreenLake is proving to be an unbeatable combination, Cohen said. “It resonates with customers,” he said.
One of the keys to PKA’s success with GreenLake is the company’s knowledge of financial accounting, which has opened the door to advising clients on IT asset depreciation with the pay-as-you-go model. said Cohen. “Now we’re having financial conversations with customers about how they can further depreciate their IT assets with GreenLake,” he said.
Among PKA GreenLake’s high-profile wins is a pay-as-you-go deal with Trinchero Family Estates in Napa Valley, one of the largest family-owned wineries in the world.
Pat O’Dell, managing director and managing partner of CPP Associates, based in Clinton, New Jersey, said his company also sees GreenLake gaining momentum with a pay-as-you-go model that solves data problems. inflation and supply chain. “HPE is firing on all cylinders with GreenLake,” he said.
CPP recently entered into GreenLake agreements with two large financial institutions that evaluated public cloud and other options but chose GreenLake, O’Dell said. Key to these GreenLake victories was CPP Associates’ Infrastructure Anywhere assessment, which aims to determine where workloads should reside, onsite or offsite.
“These companies also conducted their own internal assessments and found that GreenLake was the most competitive for them,” he said. “They found that GreenLake gave them more security and control than the public cloud. HPE has made GreenLake more competitive and comprehensive with more internal controls and more security from your own internal team.
In addition to CPP’s Infrastructure Anywhere assessments, GreenLake also benefits from HPE’s CloudPhysics tool which provides cost analysis between public cloud and GreenLake and sometimes recommends public cloud, O’Dell said. “It builds credibility.” He said. “The tool sometimes recommends the public cloud.”
O’Dell praised Neri and HPE Executive Vice President Keith White for fully integrating GreenLake into HPE as a centerpiece of the business. “HPE sales teams always talk about GreenLake first and last,” he said. “What Keith and Antonio put together is a terrific offering that is now ingrained in the DNA of the HPE sales force and partner community.”
HPE’s channel engagement remains unmatched, O’Dell said. “What HPE is doing with GreenLake is they focus on the total solution and reward partners like CPP who deliver a total solution from whiteboard to keyboard and everything in between,” he said.
HPE Fourth Quarter Highlights
HPE’s fiscal fourth quarter revenue of $7.87 billion was higher than the fourth sequential quarter guidance and was the second highest quarterly revenue ever for HPE on a continuing operations basis. The Zacks consensus analyst estimate for the quarter was $7.42 billion.
HPE reported non-GAAP earnings of 57 cents per share for the quarter, up 10% from a year earlier. This matched the Zacks consensus of 57 cents.
HPE shares were up 33 cents, or 2%, after hours trading at $15.79.
Highlights for the quarter included an 18% increase in smart device sales (23% after adjusting for currency) to $965 million. HPE Aruba’s annualized revenue run rate increased by 70% over the prior year period.
HPE Compute sales, meanwhile, were up 16% year-on-year (22% when adjusted for currency) to $3.7 billion, revenue close to record. HPE Compute posted an operating profit margin of 14.7%, compared to 9.4% in the prior year quarter.
Additionally, HPE Storage sales increased 4% from the prior year quarter (6% currency-adjusted) to $1.3 billion. The storage activity recorded an operating margin of 15.9% against 13.8% the previous year.
Overall, HPE increased its non-GAAP operating margin to 11.5%, up 180 basis points year-over-year, one of the highest quarterly levels in the industry. HPE history.
For the full year, HPE reported revenue of $28.49 billion, up 3% (5% adjusted for currency effects) from $27.78 billion last year. last year. Non-GAAP earnings reached $2.02, up 3% from a year earlier.
HPE ended the year with significantly higher bookings than at the start of the year.
Neri, for his part, said HPE has seen “sustainable” demand in 2022 and expects that demand to be “steady” through fiscal 2023.
“We enter fiscal 2023 with incredible momentum on all fronts,” he said. “I look forward to advancing our strategic leadership even further over the next year.”
#HPE #Partners #Deliver #Record #Reservations #GreenLake #CRN