Making Markets EP19: Quick Take on HPE

In this Making Markets quick take, host Daniel Newman talks about HPE’s biggest challenges in the face of the pandemic, and how the company did still grow in spite of those challenges. We also dive into the business’s subscription model and CEO Antonio Neri’s big as-a-service pivot. The company is starting to see good results generating almost $800 million at a 36% growth rate of annualized revenue, their as-a-service orders on a year over year basis are up over 100%, and they’re targeting a multi-year — between FY21 and FY24 — of 35-45% for their recurring revenue category. Solid quarter for HPE, but of course everyone would like to see it grow faster.

You can grab the video here and subscribe to our YouTube channel if you’ve not yet done so.

You can also listen below or stream the audio on your favorite podcast platform — and if you’ve not yet subscribed, let’s fix that!

Disclaimer: The Making Markets podcast is for information and entertainment purposes only. Over the course of this podcast, 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 do not ask that you treat us as such. 

Transcript:

Daniel Newman: All right, let’s bounce over to HPE. Now we’ve all seen the big IT OEMs struggle to really show growth. That they all had probably some of the hardest headwinds in the pandemic. Because not only did they deal with chip shortages, but they also dealt with offices being closed. And when a big part of your numbers are infrastructure on prem, that has definitely been a bit of a pullback for the company. Now, the company did grow. It grew at a small percent, it was 1% growth, but it did grow. And at this point, that is what I am looking for. But the real story, if I have to get this into my two minute blitzes for these companies is all about the business’s subscription. That’s what I’ve been watching. So a couple years back, CEO Antonio Neri, who’s been on the show by the way, I recommend you check it out. He said, “We’re going to switch everything in the business to, as a service.”

And so he made this big as a service pivot. And so I’ve been watching that closely because the company’s ability to succeed with their GreenLake or software subscription as a service is going to be the difference between whether HPE emerges stronger or continues to have to fight a strong fight against the infrastructure providers. HPE was first into this space. It’s been very transparent and open and we’re starting to see good results. So they’ve now generated almost 800 million at a 36% growth rate of annualized revenue. They’re as a service orders on a year over year basis are up over 100%. And they’re targeting a multi-year between FY 21 and FY 24 of 35 to 45% for their recurring revenue category. This is going to be really important. The company’s going to have to execute this, have to move into the multi-billions because we are seeing more competition rising up from the likes of Lenovo with TruScale, Dell Tech and their APEX service, Cisco Plus.

And then of course, all the cloud providers, AWS, Azure, Google, Oracle are all offering on-prem services. However, having said that, I do believe HPE is doing well. They’re finding really specific workloads with companies like SAP and Splunk that they’ve been able to tap into to gain differentiation, continue to strong growth for their markets, and serving their customers. So solid quarter for HPE. But of course, everyone would like to see it grow faster.

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.

Related Insights
Microsoft Puts 3M EBO Technology to Work. Can 3M Scale It?
July 20, 2026

Microsoft Puts 3M EBO Technology to Work. Can 3M Scale It?

Tom Hollingsworth, Networking Technology Advisor and Event Lead at The Futurum Group, shares his insights on why Microsoft validates 3M EBO technology, while manufacturing scale and alternative sourcing remain unresolved....
QumulusAI Lists on Nasdaq: The Speed Advantage of a Distributed Path to Multi-Gigawatt Scale
July 20, 2026

QumulusAI Lists on Nasdaq: The Speed Advantage of a Distributed Path to Multi-Gigawatt Scale

Brendan Burke, Research Director at Futurum, examines QumulusAI's Nasdaq listing targeting 2.5 gigawatts of GPU capacity by 2027, with distributed inference accelerating infrastructure deployment....
Can Lenovo's World Cup AI Moment Cement Its Enterprise PC Dominance?
July 20, 2026

Can Lenovo’s World Cup AI Moment Cement Its Enterprise PC Dominance?

Lenovo's AI-powered Referee View at FIFA World Cup 2026 showcases enterprise AI capabilities globally, positioning the company as a market leader as 85.4% of enterprises pilot AI PCs in a...
Are Managed Services Failing to Deliver Real Business Outcomes?
July 20, 2026

Are Managed Services Failing to Deliver Real Business Outcomes?

Apps Associates argues that true success requires monitoring critical business processes, not just uptime metrics, fundamentally redefining how organizations evaluate service delivery....
LogicMonitor's New Leadership: Aiming for AI-Driven Observability Success
July 20, 2026

LogicMonitor’s New Leadership: Aiming for AI-Driven Observability Success

LogicMonitor appoints industry veteran Prabhu Nakkeeran as CTO to lead agentic AI integration, addressing critical reliability and hallucination management challenges in enterprise IT operations....

Book a Demo

Welcome

The vision behind everything in Futurum’s Custom Research practice is this: research should show you what is happening, what comes next, and what to do about it. It should be personal to each audience, easy for people to grasp, and structured so LLMs can reason over it accurately. And it should be fast and turnkey; you want answers now, not another project to carry for quarters.

Whether you are defining business, channel, or go-to-market strategy; evaluating vendors or justifying ROI; or commissioning research to fill an emerging market need, we have your back, with a program that answers your questions with the objectivity and credibility to drive real decisions.

To do it, we bring unmatched data to bear: Futurum research, surveys, and market projections; validated market feeds; ETR’s 15 years of insight from 10,000 technology decision-makers; G2’s buyer and user data; and what our analysts hear every day. Add leading primary collection, from AI-moderated voice interviews to surveys and analyst-led interviews, all turnkey, and every project comes out credible, nuanced, and actionable.

And we don’t just drop the results in your lap. For internal work, we provide analyst-led sessions, interactive dashboards, and a range of formats. For market-facing work, Futurum delivers turnkey activation and amplification that actually gets seen, by people and by LLMs, through our media and share of voice. This is research that moves decisions and markets.

We will meet you wherever you are, from a fast-turn brief to a multi-year program, and shape the work to your goals, timeline, and budget. The right program for your moment.

If any of this is useful, I would love to talk.

Benjamin Brown, VP Custom Research, Futurum Research

Benjamin Brown

VP, Custom Research · The Futurum Group

Newsletter Sign-up Form

Get important insights straight to your inbox, receive first looks at eBooks, exclusive event invitations, custom content, and more. We promise not to spam you or sell your name to anyone. You can always unsubscribe at any time.

All fields are required






Thank you, we received your request, a member of our team will be in contact with you.