Hewlett Packard Enterprise (HPE) CEO has revealed that the company’s 10 percent growth in revenue for the third quarter ended July 31, 2024 was driven by demand for its AI systems.
HPE has achieved 39 percent quarter-on-quarter increase in its revenue from AI systems. HPE has sold AI systems worth $1.3 billion during the May-July quarter. HPE has achieved cumulative orders worth $6.2 billion at the end of the quarter. HPE added orders of $1.6 billion for AI systems during the quarter. Backlog for AI systems is $3.4 billion.
HPE also revealed the acquisition of rival Juniper Networks will be completed in late 2024 or early 2024. The acquisition of Juniper Networks will further enhance AI revenues to HPE.
HPE has generated total revenue of $7.7 billion (up 10 percent).
“We delivered a strong third quarter, with impressive revenue growth, especially from our AI system conversion,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “These results reflect our momentum in delivering on our edge-to-cloud strategy across networking, hybrid cloud, and AI.”
Marie Myers, CFO of Hewlett Packard Enterprise, said: “We are well positioned to capture share of the growing AI infrastructure market and expect to see the continuing benefit of our cost management efforts.”
HPE has generated revenue of $4.3 billion (up 35 percent) from server, $1.1 billion (down 23 percent) from Intelligent Edge, $1.3 billion (down 7 percent) from Hybrid Cloud, and $879 million (up 1 percent) from Financial Services.
HPE has generated 44 percent of its server revenue from Americas, 31 percent from Europe, and 25 percent from Asia Pacific that includes India.
HPE has generated 50 percent of its Intelligent Edge revenue from Americas, 35 percent from Europe, and 15 percent from Asia Pacific.
HPE has generated 39 percent of its Hybrid Cloud revenue from Americas, 41 percent from Europe, and 20 percent from Asia Pacific.
HPE has generated 54 percent of its Financial Services revenue from Americas, 30 percent from Europe, and 16 percent from Asia Pacific.
The number of HPE GreenLake customers has reached 37,000 during the quarter against 34,000 in the previous quarter.
HPE estimates revenue of $8.1 billion — $8.4 billion during the current quarter. HPE estimates revenue growth of 1 percent to 3 percent for fiscal 2024. The revenue growth for full fiscal is marginal indicating that AI revenue may not be significant through the year.
Baburajan Kizhakedath
