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GreenLake revenues shine in HPE’s Q3

Vendor’s latest quarterly numbers include details of the progress of its as-a-service approach

Hewlett Packard Enterprise (HPE) has hailed the performance of its as-a-service strategy, with its latest quarterly numbers indicating that its GreenLake portfolio is being taken up by channel partners and customers.

Back in May, the vendor revealed that it had 80,000 partners globally, with 70% of its revenues coming from the channel, and it has been using its GreenLake subscription model as a major channel play.

Since then, HPE has been adding more options to GreenLake, with unified compute operations and cloud data services both being recent additions. Following its acquisition of Zerto, data recovery services will be the next to add.

HPE has pitched GreenLake as a channel-friendly business that relies on partners for growth and, speaking to analysts in the firm’s Q3 earnings call, CEO Antonio Neri gave an update on progress.

HPE GreenLake has more than 1,100 customers,” he said. “Our annualised revenue run rate this quarter was $705m, up 33% year over year. Driven by strong as-a-service orbits growth, up 46% year over year.

“Organisations across sectors, including retail, healthcare, financial services and the public sector, are turning to HP GreenLake.”

Neri said that although HPE had been investing in the as-a-service approach and had made a slew of announcements at its Discover event in June, the pressure was on to keep the innovation coming.

“The momentum we have in the market compels us to move even further and faster, and our ability to transform with increasing speed is imperative,” he said. “Transformation is my number one priority. At this pivotal moment, our purpose to advance the way people live and work has never been more important. Our vision to become the edge-to-cloud company.”

In terms of the numbers for the three months ended 31 July, HPE delivered a 3% increase in Q3 revenue to $6.9bn. On the Intelligent Edge side of the business, growth was up by 23% and switching climbed by 20%, but supply constraints had an impact in wireless LAN keeping to mid-single digits. Edge-as-a-service saw strong growth and revenues were up by 9% in HPC. Storage was rather more muted, with a year-on-year improvement of just 1%.

Neri also took to social media to underline HPE’s highlights, with the firm’s annualised revenue run rate (ARR) at $705m, up 33% year on year, being one of the main achievements, along with the business gaining decent free cashflow of $1.5bn, up $1.1bn year on year.

“At this pivotal moment, our purpose – to advance the way people live and work – has never been more important,” he wrote. “Our vision to become the edge-to-cloud company is proving its tremendous relevance. And our portfolio is winning in the marketplace.”

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