The Six Five team discusses HPE Q4 Earnings.
If you are interested in watching the full episode you can check it out here.
Disclaimer: The Six Five Webcast is for information and entertainment purposes only. Over the course of this webcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we ask that you do not treat us as such.
Transcript:
Patrick Moorhead: So revenue is down, but as we’ve seen from the shift to GreenLake, ARR was good. We also saw a freaking edge that was up 41% that was crazy. They beat on profits and the AI and supercomputing kicked in and I need to drill down to see if that’s the supercomputing deals that are finally being realized or it’s real AI. Forecast was down and that’s why HPE took the hit. The fundamentals are solid though. There’s nothing that I saw in their performance that was unexpected and I think it’s just a tough market for general compute and aside from Lenovo and Pure, storage is tough as well, but again, I want to put the exclamation point. Edge up 41%. By the way, was below expectations, but 41%. That’s the last time I’ll say this.
Daniel Newman: Yeah. So I continue to watch ARR GreenLake. There’s a pretty significant pivot that’s taking place between the cell of large compute. You saw the HPC numbers, AI numbers, edge numbers continue to grow. The edge to cloud strategy clearly is working well, but that core kind of compute storage business has been slow and I think some of that has to do with the pivot to GreenLake and some of that has to do with just the overall market conditions. When we talked about Dell Lenovo, not a lot of year-on-year growth here in those particular areas. When there are such a big part of the number, those slower growth total dollar numbers that come from ARR just aren’t going to add up quickly enough. Solid quarter. Some work to be done there. I want to see the ARR for GreenLake continue to stay high ’cause that’s really where all the energy is so that’s where the numbers need to show up.
Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
