HPE to focus on pay-per-use model but will not stop Capex plan

Hewlett Packard Enterprise (HPE) announced plans to transition HPE into an as a Service company — by offering its entire products and solutions, through subscription based, pay-per-use and as a Service offerings, by 2022.
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HPE said it will also continue to provide its hardware and software in a capital expenditure and license-based model.

HPE also announced new HPE GreenLake offerings for the mid-market, new services for the edge, and new and expanded partnerships with CyrusOne, Equinix, and Google Cloud.

HPE revealed software delivered via subscription model, including HPE Aruba Central, HPE BlueData, HPE Cloud Volumes, HPE InfoSight, and HPE OneView.

HPE GreenLake has 99 percent renewal rate. HPE GreenLake customers benefit from 30 percent Capex savings due to eliminated need for overprovisioning, and 90 percent reduction in support and professional services costs, and 65 percent reduction in time to deploy IT projects, according to a Forrester report commissioned by HPE.

HPE GreenLake is the fastest-growing business in HPE, with over $2.8 billion in total contract value, and over 600 customers.

HPE is also deploying its channel partner ecosystem to expand the reach of HPE GreenLake. Over 400 partners sell the as a Service portfolio, and the HPE GreenLake channel business has grown over 275 percent.

HPE CEO Antonio Neri said: “HPE’s unique approach to as a Service, which empowers customers with choice, flexibility, and control, is driving HPE GreenLake’s tremendous success.”

HPE is introducing new offerings designed to help mid-market companies. These include new right-sized offerings and services for the mid-market, new partnerships with data center and interconnection providers Equinix and CyrusOne, and tools and investments to simplify and speed the selling process for HPE channel partners.

HPE now offers five new HPE GreenLake offerings that provide mid-market customers with pre-configured as a Service workloads – for compute, database, private cloud, storage, and virtualization.

HPE made HPE GreenLake available via the channel over a year ago, and this business is driving significant customer demand, with HPE signing up 50 new channel partners to sell the service every month.

Meanwhile, ABB and Aruba will partner to deliver a wireless connectivity solution for large industrial customers. Customers will be able to capture data and insights from their equipment via ABB Ability Smart Sensor technology and access it via a web portal, a cloud interface or a mobile phone application.

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