HPE CEO Meg Whitman today compared the networking company’s revenue performance with rivals Cisco, IBM and Lenovo.
HPE’s Q2 revenue of $12.7 billion (+1.3 percent) was driven by strong performance in servers, storage, networking, converged infrastructure, as well as enterprise services.
HPE generated second quarter revenue of $7 billion (+7 percent) from Enterprise Group, $4.7 billion (–2 percent) from Enterprise Services, $774 million (–13 percent) from Software and $788 million (–2 percent) from Financial Services.
In storage, HPE claims that it is the only major vendor to gain share in external disk over the last two years, while EMC, NetApp, IBM and Dell loss share year-over-year. Revenue in HPE’s 3PAR all-flash business grew nearly triple digits, about two times faster than the market, said HPE CEO Meg Whitman.
In networking, HPE is seeing an acceleration of business, particularly since its acquisition of Aruba and partnership with Unisplendour, a subsidiary of Tsinghua in China.
“Our results are in stark contrast with the results Cisco reported last week. In switching, HPE grew 18 percent versus Cisco that was down 3 percent,” said HPE CEO Meg Whitman.
HPE captured the leading position in Gartner’s most recent Magic Quadrant for Wired and Wireless offsetting Cisco’s long standing run in the top five.
Following the divestment of enterprise services business to CSC, HPE will have $33 billion in annual revenue and will focus on secure next generation software defined infrastructure that leverages servers, storage, networking, converged infrastructure as well as Helion cloud platform and software.
HPE said it posted revenue growth in constant currency in every region and outright growth in the Americas and Asia Pacific Japan.
“Our Americas performance continues to support cautious optimism for the remainder of the year, amongst an uneven macroeconomic environment. In EMEA, we were still significantly impacted by currency. However, we’re seeing encouraging momentum in enterprise hardware. In APJ, China networking drove strong performance,” said Meg Whitman.
Meg Whitman did not mention about the revenue performance of HPE in India.
HPE recently won a contract from Woolworths, Australia’s largest retail company. The HPE solution, based on the ConvergedSystem 900 for SAP HANA provides access to real time data, enabling critical business decisions. It bagged the networking deal competing with all major rivals.
“This win against Lenovo, Fujitsu and Dimension Data with Cisco UCS displays as the current outsource provider with pro and further secures HPE’s relationship with Woolworths,” said Meg Whitman.
Service revenue of HPE grew 7 percent, primarily driven by strong Tier 1 sales in the Americas and core servers in APJ. HPE says it took share in the Americas and EMEA.
Converged storage grew 19 percent. 3PAR all-flash revenue grew near triple-digits and continues to drive mid range share gains. HPE gained market share in the external disk for the tenth consecutive quarter and expect storage to gain shares throughout the remainder of the year on the strength of the 3PAR portfolio and new logo wins as we take advantage of the uncertainties surrounding the Dell-EMC merger.
Networking revenue grew 57 percent. Technology Services revenue of HPE declined 6 percent.
HPE’s Enterprise Services recently bagged a 10-year $0.5 billion contract to provide IT services including infrastructure, mission critical systems, and applications to the U.S. Strategic Command.
Vina Krishnan
editor@telecomlead.com
