HPE CEO says pivot towards as-a-service is 'paying off' following revenue increase
Company records 11 per cent net revenue rise with as-a-service ARR up 30 per cent
Hewlett Packard Enterprise (HPE) saw its net revenue increase 11 per cent year-on-year to $6.7bn as the company continues to pivot towards as-a-service offerings.
The growth in revenue was driven partly by the company's accelerated move towards as-a-service, with as-a-service annual recurring revenue (ARR) growth standing at 30 per cent year-over-year up to $678 million, while orders for as-a-service grew 41 per cent.
CEO Antonio Neri said that its Edge as-a-service offerings "were up triple digits year-over-year", with Intelligent Edge revenue rising to $799 million, up 20 per cent from the prior year period or 17 per cent when adjusted for currency.
The Aruba Edge Services platform is "now a meaningful contributor to HPE's overall ARR" and "supports well over 100,000 customers, with 150 new customers added everyday connecting over one million active devices", Neri claimed.
He also said the company saw "double digit growth in HPE GreenLake and HPC business segments", with over 900 go-to-market partners now actively selling HPE GreenLake as a part of their own marketplace.
"We are strengthening our core businesses, doubling down in key areas of growth and accelerating our as-a-service pivot, while advancing our cloud-first innovation agenda to become the edge-to-cloud platform-as-a-service choice for our customers and partners," Neri said.
"HPE has been a driving transformation in our businesses to deliver a modern secure cloud expedience everywhere to help our customers with their digital transformations."
HPE's core businesses also saw growth, with compute revenue of $3bn, up 12 per cent from the prior-year period or 10 per cent when adjusted for currency, and storage revenue of $1.1bn which is up 5 per cent year-on-year or 3 per cent when adjusted for currency.
HPC & MCS revenue stood at $685m, up 13 per cent from the prior-year period and 11 per cent when adjusted, as non-GAAP diluted net earnings per share outperformed expectations at $0.46.
The company also announced that Aruba founder Keerti Melkote was retiring from HPE, with Phil Mottram taking over the leadership of our Aruba Intelligent Edge business.