Google Cloud has agreed to use Hewlett Packard Enterprise’s GreenLake on-premises cloud service for its distributed hybrid cloud in a “very strong endorsement” of HPE’s edge-to-cloud pay-per-use cloud service, said HPE CEO Antonio Neri.
“We were recently selected as the primary provider for Google’s Cloud distributed, hosted solution,” said Neri. “HPE GreenLake will enable Google to deliver an on-premises cloud experience for organizations with strict data residency, security and privacy requirements.”
The agreement effectively combines the Google Cloud stack with GreenLake for a seamless on-premises Google public cloud experience, said Neri. The deal makes GreenLake “the defacto primary managed, hosted cloud” when customers want Google Cloud on-premises,” said Neri.
The fact that Google Cloud is leveraging HPE GreenLake to deliver its own “managed, hosted distributed cloud” is a testament to GreenLake’s hybrid cloud prowess, said Neri, who referenced the blockbuster deal Wednesday in a call with analysts after HPE posted a 107 percent increase in as-a-service orders for its second fiscal quarter, ended April 30.
The Google Cloud-HPE agreement opens the door for HPE partners to sell both Google Cloud plus the on-premises version of GreenLake, said Neri. Partners no longer have to “do all sorts of gymnastics to say, ‘Your stuff is in Google Cloud, now you want something on-prem and I have to put it together for you,’” said Neri. “Now you do it together with HPE GreenLake. If you go to HPE GreenLake you can go to Google Cloud or Google on-prem, which is basically the solution for GreenLake. That is a unification of the experience which, for the partner, is all about removing friction and making more money.”
The Google Cloud deal comes as HPE’s GreenLake momentum continued in HPE’s second quarter, with the company adding an additional 150 new GreenLake customers in the quarter, including BMW Group, which is using the platform to “streamline and unify” data management across its global locations, said Neri.
In addition, Worldline, the fourth-largest digital payment provider, is leveraging GreenLake to implement an upgrade to its payment platform, said Neri.
The number of partners “actively selling” Greenlake increased by more than 50 percent compared with the year ago quarter, said Neri.
In addition, the number of partners selling multiple GreenLake deals increased in the quarter by 2.5 times year over year.
HPE reports slight revenue growth, earnings dip in FYQ2
With supply constraints a factor in the quarter, HPE reported non-GAAP diluted net earnings of 44 cents per share on sales of US$6.71 billion. That compares with non-GAAP diluted net earnings per share of 46 cents on sales of $6.7 billion in the year ago quarter.
HPE order growth was up 20 percent from the year ago quarter, the fourth consecutive quarter of 20 percent or more order growth.
“We are seeing persistent demand from our customers, underscoring both their IT spending prioritization and their attraction to our compelling portfolio,” said Neri.
Neri said he expects HPE to enter Fiscal Year 2023, which starts November 1, with “an elevated backlog, which bodes well for us for future revenue growth” for the company.