HPE Bolsters Channel Strategy Rewarding Partner Innovation

Hewlett Packard Enterprise (HPE) has announced a comprehensive channel strategy aimed at empowering partners to enhance their relevance through innovation.
HPE Primera storage solutions
The strategy encompasses multiple facets, including initiatives to foster the evolution of traditional partners into an as-a-Service (aaS) business model, while simultaneously attracting and scaling with new partner archetypes such as Managed Service Providers (MSPs). This transformation is facilitated through the development and provisioning of capabilities management via the HPE GreenLake platform, says Huey Lih, General Manager, Channel & Partner Ecosystem Sales, Asia Pacific at HPE.

AI Plans

To seize data services and storage opportunities, HPE is concentrating on ramping up partner enablement, particularly within the technical community. The company’s focal point involves targeting AI customers by identifying partners equipped with relevant skill sets and crafting specialized High-Performance Computing (HPC)/AI offerings that cater to specific business needs.

In a recent collaboration with NVIDIA, HPE announced a groundbreaking computing solution tailored for generative AI (GenAI). This solution streamlines the customization of foundation models using proprietary data and facilitates the deployment of production applications. By simplifying the complexity associated with developing and deploying GenAI infrastructure, HPE and NVIDIA’s full-stack AI tuning and inferencing solution aim to empower enterprises.

Gen AI will be a $15.4 billion opportunity for the channel ecosystem in 2023 and is expected to grow to $158.6 billion by 2028, Canalys report said. The two largest new revenue opportunities for the channel ecosystem are in offering AI services and AI software development. Other new revenue opportunities include advanced data services that use or enable AI, and the reselling, co-selling and upselling of AI products with services around those products.

Channel Focus

HPE’s Partner Ready Vantage program, designed to streamline and forecast across the HPE GreenLake portfolio, including cloud and as-a-service solutions, is set to enable partners in their transition towards a hybrid cloud business. This move emphasizes the sale of solutions as-a-Service, complemented by managed services atop a comprehensive portfolio spanning networking, compute, storage, private cloud, data services, and AI.

With an eye on growth and expansion, HPE is broadening its scope in private and hybrid cloud services, fortifying storage capabilities, and intensifying its focus on AI competencies to facilitate the creation of new services and solutions.

HPE is a pioneer in hybrid cloud, which represents largest market opportunity, recognizing the strategic importance of this market and our differentiated value proposition led by HPE GreenLake, which is also recognised by the channel.

The company’s success in FY23 showcased substantial milestones, boasting the largest annual gross margins and operating profit in the past five years. An annual recurring revenue of $1.3 billion in Q4 alone marked a staggering 37 percent increase from the prior-year period. HPE’s Intelligent Edge segment emerged as the largest revenue driver, constituting 18 percent of overall revenue and 39 percent of segment operating profit.

Innovation

HPE’s commitment to innovation is underscored by its drive to deliver solutions that cater to the AI era’s demands. By offering an end-to-end portfolio spanning AI model development, training, inferencing, and liquid cooling data center services expertise, HPE aims to meet the diverse needs of customers seeking highly personalized experiences.

In line with this innovation focus, HPE has introduced pioneering supercomputing solutions tailored for GenAI, aimed at accelerating AI model training and tuning. Collaborations with NVIDIA have resulted in turnkey AI-native solutions and managed offerings featuring AI-accelerated infrastructure, catering to the evolving needs of businesses navigating the AI landscape.

With a strategic emphasis on driving breakthroughs in research and supporting sustainable solutions, HPE remains at the forefront of technological innovation, continually striving to meet the evolving demands of a dynamic market.

Baburajan Kizhakedath reporting from Canalys Forums 2023 in Bangkok

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