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We know what Dell thinks about product financing. What does HPE think?

Don_Randall

While reading online news, trying to find something interesting to distract from our national political news, I came across this article in CRN, in which Michael Dell was asked how Dell Technologies “stacks up against” HPE GreenLake. It’s great to see that question asked, but to me, the answer was more telling.

Dell’s response, “We’ll let our share speak for itself,” really didn’t answer the question. Kind of like the way a politician answers the question they want to answer, not necessarily the one asked. But I said I didn’t want to get political.

Dell goes on to talk about the successes they’ve seen in financing product purchases. Product financing is a well-known thing, and can take the shape of leasing with flat or changing payments, or even short-term rentals. HPE Financial Services is my point of reference, and excels at finding flexible ways for customers to invest in IT.

But consumption-based IT with HPE GreenLake is different. It’s based on the public cloud model, and our customers love it. The basic idea is to align costs to how the business is doing – as you grow, your IT costs grow because you use more infrastructure to support your workloads. If the business hits a decline, your costs come down with usage. It’s the cloud economic model, and that’s what we do with HPE GreenLake for on-premises IT. We meter actual usage, and the monthly charge is based on what you use – GB of storage, VMs, cores of compute, whatever fits the business. Like the public cloud, there can be a “reserve” and an “on demand” part of the payment – and if you reserve more, you save more. 

What’s better for you? Product financing or consumption-based IT? I can’t answer that for you, but I can say that they are different. When a customer “gets” what HPE GreenLake can do for their economics, the ROI becomes obvious. Just the savings from overprovisioning can be 30% of the capital cost. Because we meter and plan based on actual usage, and always have extra capacity ready for use, customers don’t buy the extra gear that they always feel that they need to. And aligning cash flows to the business does wonders for ROI and cash flow forecasting. Not to mention the other benefits like rapid time to market and simpler IT operations. The reception that we’re getting from our customers tells me that this is a good thing. A great thing.

How would I answer CRN’s question?  

We are happy to let our leadership with HPE GreenLake speak for itself. I’d point to the consistent growth, over 40% for the $3B business that is HPE GreenLake. I’d point to our more than 700 customers, and our 99 percent renewal rate.

I’d add that HPE GreenLake is much broader, and HPE has a bigger strategy than Dell, with plans to make our entire portfolio available as a Service by 2022. (See my post Defining the Next Chapter for the IT Industry: On-Premises IT as a Service).

Finally, and leaving HPE GreenLake aside now, I’d like to respond to a couple of Dell’s remarks regarding market share on the hardware side. Once again, we are happy to have our results speak for themselves. Check out these press releases:


Hewlett Packard Enterprise / New H3C gains market share and delivers double digit growth in second quarter of 2019 IDC worldwide enterprise storage systems tracker

Hewlett Packard Enterprise/ New H3C delivers double digit market share and attains number one position in second quarter of 2019 worldwide server revenue tracker
 

 

Related articles:

As-a-Service IT: 3 Reasons to Choose a Solution that’s Time-Tested, Tried and True

Don’t Fence Me In: Why Breadth of Choice is Essential for Your Pay-as-You-Go IT Solution

How HPE Metering Technology Delivers a Better Way to Consume IT

Defining the Next Chapter for the IT Industry: On-Premises IT as a Service

 

About the Author

Don_Randall

WW HPE Pointnext Marketing. Reach me at @donrrandall on Twitter.