/>
X

HPE plans to go all-in on everything as a service with heavy dose of Greenlake

HPE outlined its fiscal 2020 outlook at its analyst meeting and highlighted how its business will shift as it moves to a subscription model.
larry-dignan-eic.jpg
Written by Larry Dignan, Contributing Editor on

Hewlett Packard Enterprise said it will pivot to completely be an as-a-service company across all of its products and that transition will have more than a few financial moving parts.

Tarek Robbiati, CFO of HPE, outlined the company's transition to selling its hardware and software on consumption based contracts. What's interesting is that HPE is making a business model shift that has typically been reserved for software vendors.

For fiscal 2020, HPE is projecting non-GAAP earnings of $1.78 a share to $1.94 a share relative to Wall Street estimates of $1.80 a share. HPE is balancing investing in the business with shareholder returns.

hpe-analyst-day-2019-5.png

CEO Antonio Neri outlined HPE's plan, which involves a heavy dose of HPE Greenlake and a subscription-based model.

Neri said it will outline its new version of HPE Greenlake, which will aim to automate functions and make CIOs more of a service provider. HPE's structure aims to bridge edge computing with hybrid cloud deployments as well as data management software between. "The burden of managing infrastructure will be taken off of CIOs," said Neri.

hpe-analyst-day-2019-3.png
hpe-analyst-day-2019-2.png

"HPE will continue to expand out its cloud portfolio from edge to cloud. In the future, everything will be delivered as a service with a consistent experience," said Neri.

Neri added that HPE will leverage HPE Financial Services to manage infrastructure and free up cash flow for customers for reinvestment. "It's about consuming what customers really need," said Neri.

HPE's value prop will revolve around providing an experience that uses Greenlake to save money for customers moving data between clouds.  HPE's long-term model from fiscal 2019 to fiscal 2022 expects a compound annual growth rate of 1% to 3% with storage, high performance compute and edge computing showing the best results. The company plans to invest further in those markets by improving gross margins and becoming more efficient.  

More HPE:

Related

Malware is targeting crypto wallets, says Microsoft: Here's how to protect yourself better
shutterstock-1134607430.jpg

Malware is targeting crypto wallets, says Microsoft: Here's how to protect yourself better

Bitcoin
Google: These 'curated' open-source packages will improve software supply chain security
software-developer-special-report-coding-programming.jpg

Google: These 'curated' open-source packages will improve software supply chain security

Security
Google: We're giving you more time to move off classic Google Sites
tech-workers-digital-jobs-team-programmer-developer-deisgn-hinterhaus.jpg

Google: We're giving you more time to move off classic Google Sites

Productivity