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HPE Service Providers: Accelerating growth with hybrid IT


Steve Dietch.jpg    Guest author: Steve Dietch, VP of WW Service Provider Business, HPE

Organizations are looking for ways to increase speed, improve agility, and drive cost effectiveness. Customer buying behavior is shifting rapidly as organizations continue to find the most effective way to address these challenges. Customers are now sourcing, managing and consuming IT services across a blend of traditional IT, private, managed and public cloud. By having the “right mix” of IT, they can deploy workloads and source applications from the most appropriate delivery platform based on their unique requirements (e.g. availability, performance, cost, security, compliance, location), resulting in increased flexibility and control.

Why organizations are turning to external service providers

For organizations that want to place workloads or applications off-premises, or desire a third party to host, operate and manage their IT services, they are turning to a broad spectrum of service providers that will deliver consumption-based services with an opex model. The benefits of using external service providers are:

  • Speed of deployment - Customers do not have to assemble, test and deploy complicated systems and solutions on their own.
  • Financial flexibility - OPEX models and scalability eliminate wasted expenditures.
  • Access to latest functionality - Service providers continually evolve with technology, passing along improvements and the latest innovations to the customers.
  • Staff and skillset augmentation - Customers can access external expertise to complement or augment their own IT staff.

Based on market research1, global end user cloud spending on ‘consume’ type services will reach $144 billion in 2017 and will grow 30% over the next 3 years, twice the growth rate as private cloud buildouts. Therefore, service providers play a key role in delivering on the ‘off-premises’ element of the hybrid IT solutions.



How can service providers create differentiated values?

To capitalize on the market opportunity, service providers should focus on three foundational areas where hyperscale providers cannot:

  • Address customer complexity; organizations require more than standardized offerings; go beyond simple infrastructure services, deliver enterprise applications, and offer industry-specific expertise
  • Support geographic requirements; organizations have data privacy, data residency, and performance requirements that can only be addressed by having a physical data center presence in country, local expertise, and intimate customer relationships
  • Service brokering / managed services; organizations need to help in managing an increasing complex IT environment that spans multiple venues; ensuring optimal total cost of ownership, service level agreement performance, and risk minimization


How does HPE help service providers succeed?

The HPE service provider strategy is designed to enable service providers to create differentiated services and business values, increase speed and business agility, and extend sales reach to accelerate revenue. It consists of 3 key pillars:

  1. Provide revenue generating solutions so service provider partners can quickly deploy services to accelerate revenue growth
  2. Offer flexible business models and financial offerings that align cost to revenue, as well as tailored support and services
  3. Drive collaborative sales and marketing to enhance coverage and extend sales reach HPN25035_0002_Layer Comp 3.jpg

 Why is HPE the Right Partner for Service Providers?

  • Hybrid IT focus with enterprise level delivery and support
  • ‘Partner-first’ – HPE does not compete with our service provider partners
  • Revenue generating “SP ready” solutions
  • Innovative financial services
  • Collaborative Go-To-Market

Learn more

You can hear more in this video on the changing market dynamics, how service providers can capture the market opportunity and partner with HPE to accelerate your business outcomes.

For more information, please visit


  1. Cloud Market Model by HPE Market & Competitive Intelligence team, August 2016 with data sources from Synergy Research Group, Gartner and 451 Research



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cloud SaaS hybrid IT