What Drove HPE’s Hardware Revenue Growth in 3Q17
Enterprise Group’s revenue rises 3% in fiscal 3Q17
In fiscal 3Q17, Hewlett Packard Enterprise’s (HPE) Enterprise Group saw its revenue rise 3% YoY (year-over-year) to $6.8 billion. Revenue, excluding that of Tier 1 (telecom and cloud companies), rose 9% YoY in fiscal 3Q17. While server revenue was flat, it rose 12% YoY—again excluding Tier-1 sales.
Revenue from HPE’s High Performance Computing vertical rose 40% YoY and 10% YoY after adjusting for acquisitions. HPE is also gaining traction in the space with its SGI portfolio.
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Storage revenue rises 11% YoY in 3Q17
While Servers revenue accounts for 49% of Enterprise Group’s revenue, Storage revenue makes up 12%. Storage revenue rose 11% YoY, with all-flash array (or AFA) storage revenue rising over 30% in 3Q17, driven by the Nimble Storage acquisition. In early 2017, HPE launched the HPE SimpliVity, a hyper-converged offering, and saw a 200% rise among its customer base in the SME (small and medium enterprise) segment.
HPE’s acquisition of Aruba saw its WLAN (wireless local area network) revenue rise 30% in 3Q17, and the company is gaining market share from tech giants such as Cisco Systems (CSCO) in this vertical. Enterprise Group is HPE’s largest business segment and accounted for over 80% of its revenue in fiscal 3Q17.