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What Drove HPE’s Enterprise Group Revenues in Fiscal 3Q17?

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HPE’s Enterprise Group revenues in fiscal 3Q17

Enterprise Group is Hewlett Packard Enterprise’s (HPE) largest business segment and accounted for over 80% of HPE’s revenues in fiscal 3Q17. Enterprise Group reported revenues of $6.8 billion in fiscal 3Q17—a rise of 3% YoY (year-over-year). Server revenues, which account for almost 50% of Enterprise Group’s total revenues, rose 12% YoY on a constant currency basis.

HPE Synergy is a software-defined solution that enables businesses to manage their infrastructures as code and helps firms deploy IT (information technology) resources efficiently.

HPE Synergy was launched in 2016 and had over 600 customers at the end of fiscal 3Q17. HPE is also gaining traction in high-performance computing, driven by its SGI portfolio.

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All-flash storage revenues rise in fiscal 3Q17

Earlier this year, HPE launched its fully integrated HPE SimpliVity hyper-converged offering and saw its small customer base grow over 200% in fiscal 3Q17. HPE’s all-flash storage revenues rose 30% YoY, driven by its acquisition of Nimble Storage.

During HPE’s fiscal 3Q17 earnings call, CEO (chief executive officer) Meg Whitman stated the following: “With Nimble and our marketing-leading 3PAR portfolio, HPE delivers a full range of superior flash storage solutions for customers across every segment. We are already seeing the benefits of the combination of Nimble and HPE and we couldn’t be more excited about the potential.”

WLAN (wireless local area network) solutions also rose 30% in fiscal 3Q17, driven by Aruba. HPE stated that Aruba continues to gain market share from tech heavyweights such as Cisco Systems (CSCO) in the WLAN space. In fiscal 3Q17, Aruba launched a new core aggregation switch known as Aruba 8400, which supports the requirements of modern networks.

Using this differentiated technology, network operators will be able to simplify operations and will have a more powerful and scalable solution to support a huge amount of data. HPE values the market for this technology at $4 billion and expects to grow revenues over the next few quarters.

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