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Hewlett Packard Enterprise Grows Compute Business as Private Cloud Opportunities Advance

By Sean Michael Kerner (Send Email)
Posted May 30, 2018

Hewlett Packard Enterprise (HPE) CEO Antonio Neri is optimistic about the continued growth prospects for his company's products in the private cloud and compute spaces.

HPE reported its second quarter fiscal 2018 financial results on May 22, with revenue coming in at $7.5 billion, for a 9.7 percent year-over-year gain.

Neri said HPE's compute revenues grew by six percent in the second quarter of 2018.

"We saw very strong growth in high-performance compute, composable infrastructure and hyper converged, offset by the continued decline in our customized commodity server sales to Tier 1 vendors, a business we are moving away from," Neri said.

Neri also highlighted a major high-performance compute (HPC) deal with the U.S. Department of Energy that was announced in the second quarter. He added that the deal is the latest example of the strength of HPE’s HPC portfolio and the value it brings to the U.S. government and the nation in international competition over computing power.

Private Cloud

HPE is also seeing positive momentum in the private cloud segment. Neri noted that HPE has multiple private cloud options, including an integration between VMware and the HP Synergy stack. He added that there is also some early progress with Azure stack on HPE servers as well.

"With our offering of HPE OneSphere, we also provide an OpenStack and Docker Kubernetes environment for those customers who wants to accelerate deployment of containers," Neri said. "So in the end, we have one platform called HPE OneView that manages any type of infrastructure, whether it's a traditional Tier 3 approach, converged, hyper converged or composable."

Artificial Intelligence

Artificial Intelligence (AI) is also helping to drive demand for HPE server platforms, including the Superdome Flex as well as HPE Apollo 6500, which is an AI design platform.

Neri explained that how HPE monetizes AI is very simple. HPE provides services upfront, which includes advisory services on how to implement AI in an environment. Following that, HEP provides design and implementation for AI deployments.

"We already have many platforms with AI embedded into it," Neri said.

Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist.

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Tags: private cloud, HPC, AI, HPE

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