Google Cloud has agreed to use Hewlett Packard Enterprise’s GreenLake on-premises cloud service for its shared hybrid cloud with a “very strong endorsement” of HPE’s pay-as-you-go cloud service, Antonio said Neri, CEO of HPE.
“We were recently selected as the primary provider for Google’s distributed, cloud-hosted solution,” Neri said. “HPE GreenLake will enable Google to deliver an on-premises cloud experience to organizations with strict data residency, security, and privacy requirements.
The deal effectively combined the Google Cloud stack with GreenLake for a seamless on-premise experience in Google’s public cloud, Neri said. The deal makes GreenLake “the de facto primarily managed and hosted cloud” when customers want Google Cloud in place, ”Neri said.
[Related: Google Cloud To ‘Attach Partners To 100 Percent’ Of Customer Engagements]
Google Cloud’s use of HPE GreenLake to deliver its own “managed and hosted shared cloud” is a testament to GreenLake’s hybrid cloud efficiency, said Neri, who referred to the blockbuster deal Wednesday in a call to analysts after HPE reported a 107% increase in as-a-service orders for its fiscal second quarter, which ended April 30.
The Google Cloud-HPE deal opens the door for HPE partners to sell both Google Cloud and the on-premises version of GreenLake, Neri said. Partners no longer need to “do all kinds of gymnastics to say, ‘Your business is in the Google Cloud, now you want something in place and I need to set it up for you,'” he said. is Neri. “Now, you do it at HPE GreenLake. If you go with HPE GreenLake, you can go with Google Cloud or Google on-premise, which is a standard solution for GreenLake. It is an amalgamation of experience that, for the partner, is to eliminate friction and earn more money. »
Paul Cohen, vice president of sales at PKA Technologies Inc. said. New York-based, which has multiple deals with GreenLake, whose Google Cloud approval is another big help for HPE GreenLake. .
“Google Cloud’s choice of HPE GreenLake for its own distributed cloud confirms our strategic investment in GreenLake as the hybrid cloud platform of choice,” Cohen said. “This is further proof that GreenLake is the standard for hybrid clouds.»
Partners: The Pay-as-you-go model attracts customers
PKA Technologies has more than 20 “viable” opportunities in GreenLake that it is currently pursuing, Cohen said.
“Customers want to pay for what they use,” Cohen said. “From both a financial modeling and technology perspective, this reflects CFOs and IT management. The idea of paying only for what you use resonates in the industries. That’s what the smart consumer is looking for today. Why? Do you want to pay more than you use? It’s as simple as that.
The key to GreenLake’s value proposition is managing it under the umbrella of PKASolveIT Managed Services, Cohen said. “From a marketing perspective, PKASolveIT pre-sales consulting is driving GreenLake’s strong pipeline,” he said.
Cohen praised HPE for driving the marketing, sales and enabling that builds GreenLake’s momentum. Additionally, he praised HPE for GreenLake’s rapid innovation that meets customers.
The HPE-Google Cloud partnership forms an agreement reached three years ago in which the two companies agreed to work together to “simplify the hybrid cloud.” At the time, HPE and Google Cloud said they would work together to “provide customers with a consistent experience in public clouds and on-premises environments.”
CRN contacted Google Cloud for comment, but did not hear back until press time.
The deal with Google Cloud came as HPE’s GreenLake momentum continued in the second quarter of HPE, the Spring, Texas -based company that added an additional 150 new GreenLake customers in the quarter, including BMW Group, which uses the platform to ” streamline and consolidate ”data management across. its global locations, Neri said.
Additionally, Worldline, the fourth-largest digital payment provider, is using GreenLake to implement the upgrade to its payment platform, Neri said.
The number of partners “actively selling” Greenlake has risen more than 50% from the quarter last year, Neri said.
In addition, the number of partners selling multiple transactions on GreenLake increased in the quarter by 2.5x year-over-year.
CPP Associates, one of HPE’s key business partners, is seeing growing momentum for GreenLake during the supply chain crisis and IT inflation, said Pat O’Dell, managing director and managing partner of Clinton, NJ- based solution provider and HPE partner.
CPP has just closed an agreement with GreenLake with an international bank and is expected to close four more deals with customers in various industries by the end of 2022, O’Dell said.
“I’m not pretending to be smart enough to predict the market, but I can tell you that for CPP Associates, the time has come for the adoption of GreenLake,” he said. “At GreenLake, we become a strategic partner for the customer. This significantly reduces friction in relationships because it makes us a true customer partner. At GreenLake, we work together rather than fighting the supply chain, lead time and growth of costs. »
GreenLake certainly “reduces” supply chain issues and IT inflation, O’Dell said. “Supply chain issues are reduced because there is always a 30% buffer with additional capacity built into GreenLake,” he said.
“GreenLake allows us to avoid challenges in the supply chain that represents 30 [percent] 50% of the IT challenges we face today, ”he said. “It goes out the door when you buy GreenLake. You also get an enhanced level of support that alleviates some issues that customers may have. This higher level of support eliminates another 10 [percent] 30% of IT challenges.
Regarding IT inflation, O’Dell said GreenLake offers an attractive option to combat rising IT costs by providing predictable consumption-based services. This predictability is critical for CFOs and CEOs facing a market where prices are rising due to the supply chain crisis, O’Dell said.
O’Dell praised Neri for fulfilling a promise made three years ago that by 2022, all hpe products and offers will be delivered as one service. “I took my hat off Antonio,” he said. “It is impressive that he made a prediction three years ago that was aggressive but convincing and then carried it out.»
HPE Reports Slight Revenue Growth and Low Revenue in FY202
With supply constraints a factor in the quarter, HPE reported non -GAAP diluted net income of 44 cents per share on sales of $ 6.71 billion. That’s compared to non -GAAP diluted net income per share of 46 cents on sales of $ 6.7 billion in the same quarter last year.
HPE’s order growth rose 20% in the same quarter last year, the fourth consecutive quarter of order growth of 20% or more.
“We see continued demand from our customers, emphasizing their prioritization of IT spending and their appeal to our compelling portfolio,” Neri said.
Neri said he expects HPE to enter fiscal year 2023, which will begin in Nov. 1, with a “strong backlog, which is a good indication for future revenue growth” from the company society.