With quarterly revenue returning to pre-pandemic levels, Hewlett Packard Enterprise CEO Antonio Neri says he expects HPE to gain share against rivals Cisco Systems and Dell Technologies.
“We think we are gaining share across the entire portfolio,” said Neri in an interview with CRN after HPE posted a 6 percent gain in sales from the preceding quarter to US$7.2 billion. That is essentially flat compared with the year-ago quarter before the onset of the global pandemic.
In the intelligent edge business—which competes with Cisco—HPE reported sales for the quarter ended Oct. 31 of US$786 million, up 15 percent from the preceding quarter and 6 percent from the year-ago period.
“We expect to gain share in switching and wireless LAN,” said Neri. “We had high-single-digit growth year over year in switching, and we had 20 percent quarter-over-quarter growth in wireless LAN. We expect to gain share versus Cisco.”
Cisco’s infrastructure segment, which includes the core switching and routing businesses as well as wireless and data center products, continued its double-digit decline in the most recent quarter, falling 16 percent to US$6.34 billion.
CRN US reached out to Cisco and Dell but had not heard back at press time.
HPE’s intelligent edge momentum is growing, with 65,000 customers now on the Aruba Central platform, said Neri. “Now we’re going to get a turbo acceleration from the Silver Peak acquisition,” he said.
HPE just two months finalized ago the US$925 million acquisition of SD-WAN highflier Silver Peak, which partners said takes direct aim at Cisco.
“Silver Peak brings that incremental growth that we are looking for in SD-WAN,” said Neri. “I’m very bullish about that business. Obviously, we want the partners to come along. More and more partners are selling Aruba.”
With high-performance computing and mission-critical systems growing 25 percent to US$975 million compared with the year-ago quarter, HPE also expects to gain share against Dell in servers, said Neri.
With the strong growth in high-performance computing and mission-critical systems combined with stabilization of the HPE server business, HPE’s server business grew year over year in a market that is declining, said Neri.
“If you look at the combined server view across compute and HPC/MCS businesses—which is how the market tracks server performance—our total net revenue in the server market will be up 3 percent sequentially and 1 percent year over year,” said Neri. “As a result, we believe we gained share in the total server [market] for the second consecutive quarter.”
Dell’s server and networking revenue, meanwhile, dropped 2 percent year over year to US$4.16 billion in the most recent quarter. “We expect to gain share [there],” said Neri.
In the pay-per-use Everything-as-a-Service GreenLake business, HPE reported a 20 percent increase in orders. HPE’s annualized revenue run rate was US$585 million in the quarter, up 30 percent from the year-ago period.
GreenLake channel orders were up 62 percent year over year with the number of active partners selling GreenLake up 68 percent, said Neri.