Complete reference and brain dump information about HP HPE2-E69 exam
|Exam Name||:||Selling HPE Hybrid IT, Intelligent Edge, and Services|
|Questions and Answers||:||110 Q & A|
|Updated On||:||April 25, 2019|
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HPE2-E69 exam Dumps Source : Selling HPE Hybrid IT, Intelligent Edge, and Services
Test Code : HPE2-E69
Test Name : Selling HPE Hybrid IT, Intelligent Edge, and Services
Vendor Name : HP
Q&A : 110 Real Questions
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HPE find turned into HPE's latest chance to tell its story. With a spotlight on expert services and hybrid IT, the company continues to position itself well as a strategic associate.
after I see a hardware supplier offering aid in transitioning to a brand new working model, I can't aid but suppose of a piano enterprise attempting to promote an upright piano as a complement to a radio. As an trade shifts, it be tricky for an incumbent to seriously change.
SEE: Why HPE find is the enterprise's remaining probability to tell its story and prove its value (TechRepublic)
At both Dell EMC World and HPE find, the predominant topics revolved around digital transformation and hybrid IT. I've discovered the messaging extraordinary. Incumbent hardware companies have the ear of the CIO. each HPE and Dell EMC are neatly positioned to tell the reviews of how their items and features support supply the foundation of hybrid IT. to be able to more desirable bear in mind HPE's story, I attended HPE find and queried HPE on their hybrid IT offerings. right here's a glance at their up-to-date strategic vision.Hardware at the core
In an previous post, I puzzled the imaginative and prescient of the new HPE. I failed to remember the price the new organization offered to firms with out the colossal capabilities, software, and conclusion-consumer computing. all the way through the fresh HPE Blogger Talks within HPE find, the HPE product groups made the strategic imaginative and prescient of the company a bit bit extra clear.
At HPE discover, HPE focused on making hybrid IT less difficult by the use of a excessive price consulting arm rebranded Pointnext. Their composable infrastructure conception powers their information center and area offerings—both of which remain core to HPE's product focus.
Hardware is a core capability of HPE. analysis items such as the computing device exhibit their leadership within the house. The Synergy enclosure platform, alongside the applied sciences acquired by means of the purchases of SimpliVity and Nimble, reveal how HPE is carrying on with to strengthen the foundation of their hardware providing. briefly, HPE has hardware covered, but it surely still essential to clarify its functions and utility choices.Pointnext consulting
HPE has rebranded HP Technical capabilities (HP TS) to Pointnext. Pointnext is the same capabilities company HPE offered earlier than the acquisition of EDS, and it focuses on assignment-oriented engagements.
HPE Pointnext has had a good deal of adventure with inner most cloud and public cloud integration. before the HP Inc and HPE cut up, I spoke with the team liable for supplying the Helion Cloud answer. much of the work in supplying the OpenStack-primarily based Helion Cloud relied on custom-made work from venture to venture. HPE's place is still similar in that an awful lot of the work concerned in hybrid cloud relies on custom work from consumer to client.
consumers seeking to combine public cloud features with public cloud platforms will need white glove skilled services until specifications and administration options mature. HPE believes Pointnext is placed as well as DXC and Accenture to deliver these tailor-made services.utility method
software is one of the most difficult transitions for hardware companies to make in revamping their items to assist hybrid IT. earlier than the 2017 HPE Discovery event, lots of HPE's hybrid IT strategy concentrated on their composable infrastructure marketing time period. Composable is one other time period for software-described, and HPE's Synergy Chassis is the groundwork of HPE's composable infrastructure know-how. HPE retrofitted OneView to manage Synergy and future composable infrastructure. while Synergy fills a necessity for scalable inner most cloud hardware, HPE nevertheless had a niche to tackle in cloud administration.
HPE plans to fill the cloud administration hole with venture NewStack. similar to The laptop research challenge, NewStack is never a single mission or with no trouble a imaginative and prescient for the long run. NewStack takes HPE's learnings from Synergy and Helion to present a single view into hybrid IT infrastructure. although, HPE did not deliver a roadmap for the free up of NewStack-primarily based items.
HPE wants the shed the picture of an organization that sells packing containers for that of a company that sells solutions. HPE sees hybrid IT as a full stack answer with hardware because the foundation of the on-premises imaginative and prescient. Synergy and OneView enable software-defined management of the on-premises assets, while task NewStack offers the mixing point for the HPE-powered statistics center and public cloud.
those essential of HPE's approach call out that HPE is primarily a hardware dealer. HPE's firm is constructed to sell hardware. youngsters, HPE is out to prove that hardware manufactures optimal take into account how hybrid IT comes together.information center trends newsletter
DevOps, virtualization, the hybrid cloud, storage, and operational effectivity are just probably the most information core issues we'll highlight. Delivered Mondays and Wednesdaysregister today sign up today
Hewlett Packard commercial enterprise (HPE) has partnered with Nutanix to present Nutanix’s hyperconverged infrastructure (HCI) software accessible as a managed deepest cloud carrier and on HPE-branded appliances.
As part of the deal, the two organizations might be competing towards each and every other in hardware earnings, kind of. if you need the consumption model you get through HPE’s GreenLake, where your usage is metered and you pay for under the time you utilize it (comparable to the cloud), then you would get the ProLiant hardware from HPE.
in case you desire an equipment mannequin the place you buy the hardware outright, like in the ordinary experience of server income, you may get the same ProLiant through Nutanix.
because it is, HPE GreenLake offers multiple cloud choices to valued clientele, including virtualization courtesy of VMware and Microsoft. With the Nutanix partnership, HPE is including Nutanix’s free Acropolis hypervisor to its offerings.
“customers get to select a substitute for VMware with this,” stated Pradeep Kumar, senior vp and frequent supervisor of HPE’s Pointnext consultancy. “They like the Acropolis license mannequin, due to the fact it’s license-free. Then they have choice aspects so pricing is competitive. Some like VMware, and that i feel it’s our job to offer them each and they can pick and decide.”
Kumar added that the whole Nutanix stack is 15 to 18% less with Acropolis than a VMware-powered equipment, for the reason that they store on the hypervisor.
The HPE-Nutanix partnership presents a totally managed hybrid cloud infrastructure delivered as a carrier and deployed in consumers’ data facilities or co-place facility. The managed private cloud service gives businesses a hyperconverged ambiance in-condominium without having to manipulate the infrastructure themselves and, more importantly, without the burden of possession. GreenLake operates more like a rent than possession.
HPE is pushing challenging on GreenLake, which actually mimics cloud platform pricing models of paying for what you use as opposed to outright ownership. Kumar noted HPE projects the consumption mannequin will account for 30% of HPE’s business in the next few years.
GreenLake makes some hefty promises. in accordance with Nutanix-commissioned IDC research, shoppers will achieve a 60% discount within the 5-12 months can charge of operations, whereas a HPE-commissioned Forrester file discovered customers benefit from a 30% Capex discounts due to eradicated need for overprovisioning and a ninety% reduction in guide and skilled capabilities expenses.
by means of shifting to an IT as a provider mannequin, HPE claims to supply a 40% boost in productiveness via decreasing the assist load on IT operations workforce and to shorten the time to install IT projects by means of 65%.
both new choices from the partnership – HPE GreenLake’s inner most cloud provider operating Nutanix utility and the HPE-branded appliances integrated with Nutanix application – are anticipated to be obtainable all over the 2019 third quarter, the agencies spoke of.be a part of the community World communities on facebook and LinkedIn to touch upon themes that are appropriate of mind.
Hewlett Packard enterprise HPE currently introduced that it has collaborated with Nutanix NTNX to strengthen an built-in hybrid cloud as-a-provider (aaS) solution. The hybrid cloud infrastructure, managed by means of Hewlett Packard, will drastically reduce shoppers’ complete can charge of possession and accelerate time to cost.
Nutanix’s business Cloud OS software with its developed-in, free AHV hypervisor can be delivered through HPE GreenLake. The solution will also help speed up the digital transformation journey of purchasers of each the companies.
As part of the deal, Nutanix’s channel companions will directly promote Hewlett Packard servers combined with Nutanix’s enterprise Cloud OS utility to permit shoppers to buy an integrated product.
The HPE GreenLake aaS will simplify IT operations techniques and handle considerations over seller lock-in, and may be deployed in valued clientele’ statistics facilities or co-vicinity facility.
The solution is designed to guide loads of use cases, together with mission-crucial workloads and large facts functions; virtualized tier-1 workloads like SAP, Oracle ORCL and Microsoft; and virtualized large data applications like Splunk and Hadoop.
Launched in November 2017, the HPE GreenLake is an on-premise flexible consumption model offered by means of Hewlett Packard’s HPE Pointnext enterprise, which makes it possible for IT agility and simplifies operations.
In further efforts to increase client experience and help their digital transformation, Hewlett Packard business partnered with Alphabet’s GOOGL Google Cloud to present hybrid cloud solutions across public cloud and on-premises environments.
Hewlett Packard has been specializing in restructuring and realigning its corporations to pressure lengthy-time period sustainable increase ever for the reason that its break up from the dad or mum enterprise. The company has been continuously evolving with spin offs, or buying belongings to increase its capabilities in the hybrid IT mannequin.
The enterprise’s approach to focus extra on excessive margin organizations is assisting it mobilize materials to the fast-starting to be areas of the cloud reminiscent of software defined networks and converged and hyper-converged infrastructure. this could additionally support it to more advantageous compete with players like Oracle , Cisco and NetApp.
The HPE GreenLake aaS is expected to be available in the market in the third quarter of 2019.
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There is a new sheriff in town at Hewlett Packard Enterprise – that would be chief executive officer Antonio Neri – and that means a new way of looking at the books and therefore steering the business. No, we didn’t mean that the other way around.
In opening up its books for the first quarter of its fiscal 2018 year, which ended in January, we can see some important things about HPE’s business, and at the same time, we have lost some visibility about core parts of its business.
First of all, the books have been reclassified significantly in the wake of selling off the bulk of its enterprise services and software businesses, for which it has been able to boost its cash pile in the fiscal 2017 year and with which it paid off the taxes on its overseas cash hoard thanks to the Tax Cuts and Jobs Act pushed by the Trump Administration and enacted by the US Congress as the calendar 2017 came to an end. Specifically, in the first quarter of fiscal 2018, HPE booked $919 million in charges for paying taxes on overseas cash, but even still it was able to book a tax benefit of $2.14 billion related to the spinoff of those enterprise services and software units. The net-net is that net income went up by a factor of 5.6X, but this is tax accounting and bookkeeping, so don’t take it too far. HPE’s earnings from continuing operations – perhaps a better measure of its financial health – fell by 42.4 percent to $261 million, against revenues of $7.67 billion, up 11.2 percent. The company is in a pinchers, as it often is – and despite having spun off its PC and printer businesses, which didn’t help bolster profits when all was said and done.
The larger problem, as we have pointed out before, is that it is very difficult to make a buck in the server, storage, and networking business with so many big buyers pushing down prices, enterprises shifting some compute from their own datacenters to public clouds (and therefore some of their budgets from capex to opex), and so many companies competing to sell wares to datacenters.
Under Neri, HPE is carving itself into three core businesses. The first is called Hybrid IT, and it takes the compute, storage, and datacenter networking businesses that are the core of the new HPE and adds to each of these areas the technology services – mostly break fix support and systems software update services – related to each general line. HPE has not furnished a set of books that are backwards compatible, restating its old results for, say, the past two years, but we will be building this data as it becomes available. The second main unit, which coincides with our expansion into edge computing, is called Intelligent Edge, and at the moment this is mostly the Aruba Networks networking gear plus related services. Financial Services is the third leg of the HPE stool, and it is unchanged from the characterization in prior financial reports.
Let’s take a look at the Hybrid IT group, which had sales of $6.33 billion, up 10 percent year on year, and which posted an operating profit of $608 million, down 17.1 percent. So, even adding in very profitable services to the core server sales could not help grow the overall profitability of this line of business. This shows the intense competitive pressure that Dell and the ODMs are putting on HPE, which has been the volume leader in systems since it bought Compaq back in 2001. Within Hybrid IT, compute – meaning servers plus their services – posted sales of $3.49 billion, up 11.1 percent. HPE has been backing away from hyperscale server sales in recent quarters, and it could be that it is trying to buy back some market share by being very aggressive with pricing, thus accounting for the drop in operating profits. The high prices of DRAM and flash memory are not helping here, either, but the year-on-year compares for memory prices already had the spike in them this time last year.
In a conference call with Wall Street analysts going over the figures, Neri said that the core ProLiant business as well as traditional HPC (mainly SGI iron, but also some Apollo gear), hyperconverged storage (mainly based on its own SimpliVity line as well as VMware vSAN and maybe a smattering of Nutanix), and next-generation Synergy composable systems all saw growth. He called out the supercomputer wins at oil and gas giant Eni and the US Department of Defense, which we have already told you about this month. HPE’s sales to Tier 1 cloud builders, hyperscalers, and service providers have been shrinking dramatically in the past two quarters, and seem to have settled down to a new normal that we guess is about a quarter of overall server revenues not including support. Tim Stonesifer, HPE’s chief financial officer, said on the call that excluding Tier 1 customers, server revenues (here including companion support revenues) rose by 14 percent, and if you take out the support the core server business (presumably the number it would have reported under the old way of doing the books) was up by 16 percent year-on year. If you do the math on that, then actual physical server hardware that Stonesifer implied that HPE brought in was $3.6 billion, but this is more than the $3.49 billion HPE reported with support added in. So maybe this means only core ProLiant servers sold to enterprises. It is hard to say. In any event, Stonesifer said that HPC sales were up in the low double digits in fiscal Q1, Synergy sales rose more than 40 percent sequentially and SimpliVity hyperconverged storage tripled year-on-year. (It looks like HPE is putting SimpliVity into the compute bucket, not the storage bucket.)
Neri did a little prognosticating about the server market for Wall Street, and said that revenue growth has been driven by the sale of denser, more expensive systems. Sales of volume, bare-bones systems will decline along with the general downward trend in enterprise server spending (it is hard to say which is causing what, we think) and that this would be offset by sales of heftier machines, packed with memory, flash and maybe accelerators like GPUs. “We see the growth in value normalized with the decline in enterprise, so it is hard to give you a number, but it is going to come down to the mix,” explained Neri. “We believe the value units will continue to grow and the volume side of house will be in decline. And that ultimately is going to be a mass exercise. But, again, let me emphasize where our focus is, and our focus is profitable share growth.”
On the storage front, HPE saw 24.1 percent growth, to $948 million, driven by 3PAR arrays returning to growth after a pause and the acquisition of all-flash array maker Nimble. On an organic basis, not including the Nimble addition, storage sales rose by 11 percent. (Again, these numbers include the hardware, software, and support relating to storage arrays.) Obviously, storage revenues are bolstered significantly by the huge increase in flash memory costs, which have doubled in the past year or so. This cuts both ways, because as flash becomes a more important component of storage, it also reduces the bottom line as a percent of sales. Stonesifer said that HPE’s all-flash arrays save 16 percent growth, and that HPE expected to take back some market share in external disk arrays.
That brings us to datacenter networking. While this business grew by 26.5 percent in the first quarter of fiscal 2018, it only accounted for $62 million. And that is with support contract added in. If HPE’s networking business was proportional to its share of the overall server market and its server revenues, it would be at least a $1.5 billion business. The former Hewlett Packard shelled out $2.7 billion in November 2009 to buy rival switch maker 3Com, and we now know after having the Aruba Networks edge products pulled out of the networking numbers just how little revenue HPE is getting from datacenter networking. 3Com was a big player in China when it was acquired, and had an annual run rate of around $1.3 billion in revenues with about half of that coming from China. The Middle Kingdom has been a disappointment for both server and switch sales in recent years, to say the least, and because of aggressive moves by indigenous companies to protect their home turf.
If you add up the Hybrid IT products – compute, storage, and networking in the datacenter – then revenues rose by 13.8 percent to $4.5 billion. There is another layer to this Hybrid IT group, however. Last year, HPE carved out its digital transformation services business into a unit called Pointnext, which aims to implement hybrid IT in the datacenter and smarts out on the edge on behalf of customers. This Pointnext business has 25,000 employees, more than three dozen ecosystem partners, and does 11,000 projects on behalf of customers per year, including professional services for transforming IT setups and operational services to run on-premises and cloud capacity on their behalf. In the first quarter, this Pointnext business had 1.7 percent revenue growth, to $1.83 billion.
Compute is about 55 percent of the Hybrid IT business, with storage being about 15 percent, datacenter networking being 1 percent, and Pointnext being 29 percent.
The Intelligent Edge business is comprised entirely of Aruba products and support, which accounted for $549 million in product sales, up 9.2 percent, and $71 million in services, up 6 percent. Add it up and Intelligent Edge had $620 million in revenues, up 8.8 percent. The Intelligent Edge business had an operating profit of $18 million, up 12.5 percent year on year.
That leaves Financial Services, the arm of HPE that provides financing for all of its various wares and sometimes that made by partners and even sometimes competitors. In the quarter, Financial Services, which doesn’t really have a product and is only a service, had sales of $888 million, up 7.9 percent. Operating profits for the banking part of HPE fell by 5.3 percent to $72 million.
As for making investments with the overseas cash hoard, HPE is doing exactly what we expect that many – if not most – corporations will do. And that is handing a lot of that cash back as dividends and share repurchases that will eventually be distributed to the company’s top brass. Stonesifer said that in fiscal 2018 and 2019, HPE plans to distribute $1.5 billion in dividends (a 50 percent increase) and do $5.5 billion in share repurchases. The company is undergoing a massive cost-cutting exercise, called HPE Next, which is trying to squeeze out an incremental $1 billion in free cash flow from the company on an annualized basis eventually (about $250 million expected this year), and it also has profits it generates each quarter, so it will not completely deplete its cash hoard by being generous to shareholders and executives through dividends and buybacks.
Hewlett Packard Enterprise (HPE) and Nutanix (NTNX) today announced a global partnership to deliver an integrated hybrid cloud as a Service (aaS) solution to the market. This offering will leverage Nutanix’s Enterprise Cloud OS software including its built-in, free AHV hypervisor, delivered through HPE GreenLake to provide customers with a fully HPE-managed hybrid cloud that dramatically lowers total cost of ownership and accelerates time to value. Additionally, as part of the agreement, Nutanix will enable its channel partners to directly sell HPE servers combined with Nutanix’s Enterprise Cloud OS software so that customers can purchase an integrated appliance.
Businesses today are under constant pressure to innovate and accelerate digital transformation. However, current legacy approaches to hybrid IT present many challenges, including complex systems that require large IT operations staff, increasing software licensing and operating costs, and concerns over vendor lock-in. As a result, businesses are losing flexibility in a world that demands choice and agility.
The HPE-Nutanix partnership addresses these challenges by delivering an attractive alternative that reduces cost and complexity. The combined offering will provide fully managed hybrid cloud infrastructure delivered as a Service and deployed in customers’ data centers or co-location facility.
The combination of HPE GreenLake and Nutanix Enterprise Cloud OS software is ideal for customers who want to use Nutanix, including its AHV hypervisor technology, to support a range of use cases. These include mission-critical workloads and big data applications; virtualized tier-1 workloads such as SAP, Oracle, and Microsoft; as well as support for virtualized big data applications, such as Splunk and Hadoop.
Customers using the HPE GreenLake aaS offering will benefit from:
“HPE created the modern on-premises, as a service consumption market with HPE GreenLake. Hundreds of global customers now leverage HPE GreenLake to get the benefits of a cloud experience combined with the security, governance, and application performance of an on-premises environment, while paying for the service based on actual consumption,” said Antonio Neri, president and CEO, HPE. “Today, HPE is expanding its leadership in this market by providing additional choice to customers seeking a hybrid cloud alternative that promises greater agility at lower costs.”
“Our customers tell us that it’s their applications that matter most. Our partnership with HPE will provide Nutanix customers with another choice to make their infrastructure invisible so they can focus on business-critical apps, not the underlying technology,” said Dheeraj Pandey, founder, CEO and chairman of Nutanix. “We are delighted to partner with HPE for the benefit of enterprises looking for the right hybrid cloud solution for their business.”
HPE GreenLake is the industry-leading aaS solution for on-premises IT. With variable payments based on actual metered usage of the workload or resources, rapid scalability ahead of customer capacity needs, and enterprise-grade management and support, HPE GreenLake delivers a cloud experience to customers’ data center or co-location environment. With HPE’s best-of-breed partner approach and growing partner ecosystem, customers can design IT solutions with their chosen technologies and consume them easily, reduce CapEx due to reduced overprovisioning, increase IT resource utilization, and speed time to value for their critical IT projects. 
In addition, with today’s announcement, Nutanix will enable its channel partners to directly sell HPE servers combined with Nutanix’s Enterprise Cloud OS software as an integrated appliance. Nutanix customers will be able to leverage a fully integrated solution, shipping directly from HPE factories, combining the world’s largest installed base of secure, innovative HPE ProLiant and HPE Apollo server technology from HPE and the pioneering Enterprise Cloud OS software from Nutanix to modernize data center environments and unify the support experience on their preferred hardware and software platforms.
The Nutanix Enterprise Cloud OS software on HPE GreenLake and the integrated appliance utilizing Nutanix software on HPE servers are expected to be available in Calendar Q3 2019.
HPE and Nutanix will showcase their combined offerings at their respective customer conferences this year: Nutanix .Next on May 7-9, 2019 in Anaheim, California; and HPE Discover on June 17-19, 2019 in Las Vegas, Nevada.
Nutanix is a global leader in cloud software and hyperconverged infrastructure solutions, making infrastructure invisible so that IT can focus on the applications and services that power their business. Companies around the world use Nutanix Enterprise Cloud OS software to bring one-click application management and mobility across public, private and distributed edge clouds so they can run any application at any scale with a dramatically lower total cost of ownership. The result is organizations that can rapidly deliver a high-performance IT environment on demand, giving application owners a true cloud-like experience. Learn more at www.Nutanix.com or follow us on Twitter @Nutanix.
HPE is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze, and act upon data seamlessly from edge to cloud. HPE enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future. Learn more at www.hpe.com or follow us on Twitter @HPE.
This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding Nutanix’s and HPE’s business plans and objectives, the benefits and capabilities of Nutanix’s Enterprise Cloud OS software on the HPE GreenLake as a Service solution, the benefits and capabilities of an integrated appliance utilized Nutanix software on HPE servers, and the availability of both the new as a Service solution and the integrated appliance. These forward-looking statements are not historical facts and instead are based on current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of such forward-looking statements depends upon future events and involves risks, uncertainties, and other factors beyond Nutanix’s and HPE’s control that may cause these statements to be inaccurate and cause actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: failure to develop, or unexpected difficulties or delays in developing, new products, services, product features or technology in a timely or cost-effective basis; delays in the availability of the new as a Service solution and/or the integrated appliance; the introduction, or acceleration of adoption of, competing solutions; and other risks detailed in Nutanix’s quarterly report on Form 10-Q for Nutanix’s fiscal quarter ended January 31, 2019, filed with the SEC on March 12, 2019, and in HPE’s quarterly report on Form 10-Q for HPE’s fiscal quarter ended January 31, 2019, filed with the SEC on March 5, 2019. Nutanix’s SEC filings are available on the Investor Relations section of Nutanix’s website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, neither Nutanix nor HPE assumes any obligation to update forward-looking statements to reflect actual results or subsequent events or circumstances.
 The Total Economic Impact of HPE GreenLake Flex Capacity, Forrester, May 2018 Nutanix Delivering Strong Value as a Cost-Effective, Efficient, Scalable Platform for Enterprise Applications, IDC, August 2017
 The Total Economic Impact of HPE GreenLake Flex Capacity, Forrester, May 2018
 Nutanix Delivering Strong Value as a Cost-Effective, Efficient, Scalable Platform for Enterprise Applications, IDC, August 2017
 The Total Economic Impact of HPE GreenLake Flex Capacity, Forrester, May 2018.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190409005359/en/
SOURCE: Hewlett Packard Enterprise
Randy Cairns, HPE+1 650 619 8272Cairns@HPE.com Kate Reed, Nutanix+1 408 309 6886Nutanixkreed@nutanix.com (973) 534-9292
Copyright Business Wire 2019
Hewlett Packard Enterprise CEO Antonio Neri Tuesday said he is bullish on the 2019 outlook with explosive growth in data continuing to drive strong sales of HPE intelligent edge, storage and compute products and HPE's hot selling Greenlake consumption-based platform.
"Why I am confident about 2019 is data continues to explode around us," said Neri in an interview with CRN after the Dow Jones Industrial average plummeted nearly 800 points on Tuesday on fears of an economic slowdown. "That data has to be stored and managed. It is just physics. That is a big opportunity for both us and our partners: how we really accelerate outcomes from that data with the best edge to cloud architectures with connectivity, security, AI and the right cloud computing associated with those workloads."
[Related: HPE Adds New AI, Machine Learning InfoSight Capabilities To Boost Nimble, 3Par Performance]
The only possible wild card that could put a damper on 2019 would be a recession which could cause customers to hold back on IT purchases, said Neri. "I am actually bullish about it unless something really bad happens from a recession perspective where people stop buying things completely," he said. "I don't think this is going to slow down in the near term."
Neri's comments came after the intelligent edge-hybrid IT powerhouse delivered better than expected results for its fourth fiscal quarter ended Oct. 31 with Aruba intelligent edge sales up 17 percent; compute sales up nine percent; storage sales up six percent and HPE Greenlake pay per use consumption orders up 30 percent.
HPE also delivered strong performance for the full 2018 fiscal year – Neri's first fiscal year since he took the helm last Feb. 1- with higher than expected sales growth of seven percent to $30.9 billion. That full year sales growth was led by 13 percent growth in the intelligent edge business; 13 percent growth in the storage business; nine percent growth in value compute offerings including 25 percent growth in high performance compute and 280 percent growth for Synergy composable systems with a more than $1 billion annual run rate; and 54 percent growth for HPE Greenlake.
"We have strong momentum across our differentiated portfolio as we head into an expected healthy IT spending environment in 2019," said Neri.
Neri said HPE's InfoSight artificial intelligence (AI) predictive analytics platform is giving the company a marked competitive advantage in the software defined, autonomous data center battle with an intelligent and autonomous data fabric.
Just last week, HPE announced that InfoSight is being extended across HPE's innovative composable hybrid cloud platform. "Customers see the value of predictive analytics, fix the problems before they happen," said Neri.
That InfoSight innovation is leading to storage share gains, said Neri. "HPE InfoSight has been a phenomenal success," he said. "We couldn't do any of this without our channel partners. Our channel partners see the value of our architectures and the software defined intelligence that we are bringing to it. Customers are seeing that they can deploy this on premises cheaper and they can run it more autonomously. That is the opportunity for us and the partners."
HPE’s software-defined solutions are 20-30 percent less expensive than public cloud offerings particularly in large scale virtual machine environments, said Neri. "If you are talking about thousands of VMs at scale you really get into 20-30 percent (savings) quickly," he said. "That is the reality of it."
For the quarter ended Oct. 31, HPE reported non-GAAP diluted net earnings per share of 45 cents on a four percent increase in sales to $7.9 billion. That was above the Wall Street consensus of 43 cents per share on sales of $7.85 billion.
For the full fiscal 2018 fiscal year, HPE reported non-GAAP diluted net earnings of $1.56 per share– above the previously provided outlook of $1.50 to $1.55 per share.
Even with the strong results, HPE shares were down 25 cents in after hours trading to $14.80. That came after HPE shares closed down 45 cents for Tuesday to $15.05.
Michael Goldstein, CEO of LAN Infotech, a Fort Lauderdale, Fla., solution provider, said HPE is firing on all cylinders with a big innovation and execution advantage with InfoSight and the HPE next generation software-defined infrastructure.
"Our customers are excited about HPE," said Goldstein. "It's about innovation. They are leading the way with innovative, products, services and acquisitions. Customers see that the HPE innovation is reducing overall IT spend, labor and overhead."
A great example, said Goldstein, is HPE's acquisition of BlueData – a software platform that leverages Docker containers to drive down the cost of big data, AI and machine learning applications.
Goldstein said Neri's intelligent edge vision has generated a rising tide of energy and excitement in the company and the partner community. "You can feel it," he said.
Neri, for his part, said the big opportunity for partners is to drive sales of intelligent storage with InfoSight on Nimble and 3Par; take the lead in edge computing with Aruba; continue to drive composable hybrid cloud with Synergy and provide customers with pay per use consumption solutions with Greenlake.
Noting the positive feedback from partners at last week's HPE Discover in Madrid, Neri said: "I am very bullish about what we are going to do in 2019 and beyond. Our partners last week at Discover were ecstatic about the strategy and how we are working with them. I have never seen such positive feedback and momentum from customers and partners."
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