HPE: Only 5% of our kit is sold as-a-service. So now we're really getting our aaS in gear

Look at these GreenLake bundles. PS: Don't just look

Just a single digit percentage of Hewlett Packard Enterprise’s annual sales come from stuff sold as-a-service – that is, products you pay for depending on how much you use them.

So, in a bid to get in step with the industry, the IT goliath on Monday launched on-premises infrastructure bundles charged based on consumption. Research from IDC indicated that by 2020, 40 per cent of enterprise spending on bit barns will be transacted as-a-service, so HPE is arriving at this party rather later than some of its rivals.

These GreenLake Flex Capacity “packaged solutions” will be sold directly by HPE's sales force and by the legion of channel suits, also known as services-based resellers – which are third-party companies that account for 70 per cent of HPE’s annual revenues.

The bundles includes ProLiant for Microsoft Azure Stack; HPE Synergy 480 compute modules; HPE 3PAR StorServ 8200 and 9450; HPE SimpliVity 380; HPE ProLiant BL460c server blade; and HPE StoreOnce. The configurations are well defined and price banded, so the sales bods flogging the gear should be able to easily convince customers to sign on the dotted line, HPE said.

business meeting, debate over data. Photo by shutterstock

HPE PointNext globo boss grilled by El Reg


Max Ramos, a senior sales manager within HPE's Technology Services in the Americas, said the consumption-based model will help data centre admins “avoid the vicious cycle of over provisioning [and] being out of capacity.”

Channel middlemen who choose to sell these bundles can expect hefty rebates of 17 per cent from HPE, and they are allowed to set the final price and therefore the margin they squeeze from their customers.

HPE has sold Flex Capacity for some years: it has over $2bn of business under contract. However, in December, the tech giant introduced the GreenLake brand, which now sits in the PointNext division. PointNext is HPE’s consultancy-slash-advisory arm for professional services.


And here’s the rub: just 40 per cent of PointNext turnover was, until last year, transacted by channel folk, the same channel folk who account for almost three quarters of HPE's total sales. Many just haven’t got on board with PointNext because they want to sell their own managed services rather than resell someone else’s.

This is despite repeated attempts by HPE to bring these companies into the fold, including the launch of the Partner Ready program in autumn 2016. HPE said today it couldn’t confirm if partners, as it refers to them, now account for more than 40 per cent.

One change introduced under GreenLake Flex is that the channel seller holds the customer contract, not HPE, the enterprise giant told us.

Paul Hunter, HPE’s global channel boss, admitted that only five per cent of its annual revenues were generated by consumption-based services. He urged more channel sellers to get on board.

"We are looking for a scalable consumption offer. We have started with the infrastructure, and then will look to build [it for] specific workloads," he told The Reg. He also acknowledged that public cloud has been driving the market in this direction. ®

Similar topics

Other stories you might like

  • Prisons transcribe private phone calls with inmates using speech-to-text AI

    Plus: A drug designed by machine learning algorithms to treat liver disease reaches human clinical trials and more

    In brief Prisons around the US are installing AI speech-to-text models to automatically transcribe conversations with inmates during their phone calls.

    A series of contracts and emails from eight different states revealed how Verus, an AI application developed by LEO Technologies and based on a speech-to-text system offered by Amazon, was used to eavesdrop on prisoners’ phone calls.

    In a sales pitch, LEO’s CEO James Sexton told officials working for a jail in Cook County, Illinois, that one of its customers in Calhoun County, Alabama, uses the software to protect prisons from getting sued, according to an investigation by the Thomson Reuters Foundation.

    Continue reading
  • Battlefield 2042: Please don't be the death knell of the franchise, please don't be the death knell of the franchise

    Another terrible launch, but DICE is already working on improvements

    The RPG Greetings, traveller, and welcome back to The Register Plays Games, our monthly gaming column. Since the last edition on New World, we hit level cap and the "endgame". Around this time, item duping exploits became rife and every attempt Amazon Games made to fix it just broke something else. The post-level 60 "watermark" system for gear drops is also infuriating and tedious, but not something we were able to address in the column. So bear these things in mind if you were ever tempted. On that note, it's time to look at another newly released shit show – Battlefield 2042.

    I wanted to love Battlefield 2042, I really did. After the bum note of the first-person shooter (FPS) franchise's return to Second World War theatres with Battlefield V (2018), I stupidly assumed the next entry from EA-owned Swedish developer DICE would be a return to form. I was wrong.

    The multiplayer military FPS market is dominated by two forces: Activision's Call of Duty (COD) series and EA's Battlefield. Fans of each franchise are loyal to the point of zealotry with little crossover between player bases. Here's where I stand: COD jumped the shark with Modern Warfare 2 in 2009. It's flip-flopped from WW2 to present-day combat and back again, tried sci-fi, and even the Battle Royale trend with the free-to-play Call of Duty: Warzone (2020), which has been thoroughly ruined by hackers and developer inaction.

    Continue reading
  • American diplomats' iPhones reportedly compromised by NSO Group intrusion software

    Reuters claims nine State Department employees outside the US had their devices hacked

    The Apple iPhones of at least nine US State Department officials were compromised by an unidentified entity using NSO Group's Pegasus spyware, according to a report published Friday by Reuters.

    NSO Group in an email to The Register said it has blocked an unnamed customers' access to its system upon receiving an inquiry about the incident but has yet to confirm whether its software was involved.

    "Once the inquiry was received, and before any investigation under our compliance policy, we have decided to immediately terminate relevant customers’ access to the system, due to the severity of the allegations," an NSO spokesperson told The Register in an email. "To this point, we haven’t received any information nor the phone numbers, nor any indication that NSO’s tools were used in this case."

    Continue reading

Biting the hand that feeds IT © 1998–2021