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HPE continues to evolve technical solutions for a dispersed workforce

HPE’s VDI portfolio is not new but is increasingly valuable to its customers as remote work looks like a more permanent situation than initially anticipated

As of April HPE had rolled out a series of VDI solutions that enable customers to adapt to the growing workforce and garnered a significant number of new customers. This week’s announcement at Workplace Next rides the momentum that highlighted use case-specific VDI offerings, allowing customers to customize their experience based on the type of worker and the size of the remote workforce. With these inputs, HPE can optimize newly designed VDI configurations that are dependent on each type of worker and customize pricing, billing and delivery.

Kaddoura explained that customers “need access to their data centers in a very secure way, and in a highly cost-optimized way as well,” and highlighted GreenLake as the cloud that can be implemented in a customer’s data center, colocation facility or edge. Additionally, she noted that what HPE has done is “brought together the best of our Pointnext Services, our software management layer, as well as HPE’s rich portfolio of hardware to create that cloud experience.”

While the announcement of HPE’s GreenLake virtual desktop cloud services was the banner topic woven throughout the event’s discussions, HPE’s rich ecosystem of partners was highlighted as key to optimizing the rollout of these latest features. For example, in addition to offering VDI from Citrix (Nasdaq: CTXS), HPE can now include VMware (NYSE: VMW) Horizon as well as NVIDIA (Nasdaq: NVDA) virtual GPU (vGPU) technology for more cumbersome workloads. The extension of HPE’s partnership with Wipro was also announced, enabling delivery of hybrid cloud and VDI solutions “as a Service” through HPE GreenLake.

Yadavalli expanded on the partnership between Wipro and HPE explaining how the relationship will allow Wipro to leverage HPE GreenLake across its managed services portfolio, offering a pay-per-use model that is subscription based and easily consumable. The aim, said Yadavalli, is to “bring hyperscaler capabilities to customers on-premises or on hosted infrastructure,” which will enable customers to “fast track their workplace transformation efforts by eliminating the need for upfront capital investments and provisioning costs while enjoying the benefits of on-premises control, security and compliance.”

On Nov. 10 HPE sponsored Workplace Next, a series of discussions on the trends and impacts of the reimagined workforce as a result of the COVID-19 pandemic, featuring a cross-industry panel of experts and executives. During the virtual broadcast, business leaders from various industry roles, including human resources, real estate, healthcare and manufacturing, discussed not only the workplace challenges and trends resulting from the pandemic but also highlighted the opportunities a remote work mandate have unveiled. HPE is a prime example of an enterprise that has addressed the challenges of remote work internally while reorienting its portfolio of solutions to enable as seamless a shift as possible for customers. Additionally, with the discussion of the reimagined workplace as the backdrop, HPE notably leveraged the event to announce expansion of HPE GreenLake VDI cloud services, which included several updates to its workforce strategy for the digital economy.

HPE’s array of hybrid workplace offerings provides silver lining for customers amid the pandemic

HPE bundles its existing portfolio in a GreenLake wrapper

When CEO Antonio Neri initially announced in June 2019 that HPE (NYSE: HPE) will offer everything “as a Service” by 2022, many were skeptical that the plan would resonate with the market as a whole. It was clear that pockets of customers would buy into this offer, particularly in the SMB space, where pricing can have a greater impact. But for major customers, the conversation often boiled down to something as trivial as where to put the expense on the balance sheet for stakeholders. However, considering the changing market dynamics over the last six months due to the pandemic, this aggressive marketing campaign could not have come at a better time. Because HPE has been pushing GreenLake hard since 2019, the vendor is now serendipitously ahead of peers on its “as a Service” offerings.

HPE’s “as a Service” push is directly related to increases in IT sprawl. “Sprawl” is a concept the IT industry has grappled with for decades. Prior to distributed IT environments, the term was used to describe the increase in the variety of workloads in each environment. Now, it is used when describing a single-pane-of-glass management console to ease the burden placed on IT personnel when managing a diverse environment of IT infrastructure. Sprawl is now the upshot of the increasingly diverse application of technology to business, or digital transformation. Diverse applications lead to diverse IT requirements, from the edge to the core to the cloud, making cloud an integral piece of the story and establishing the importance of bundled solutions that provide business outcomes, which is precisely what GreenLake can provide.

GreenLake does come at a premium, as software and services are baked into hardware deals consumed through this model in many cases, but pricing it as a monthly subscription makes these solutions more available and affordable to firms with less capital support. HPE GreenLake clearly resonates with customers, as key competitors Dell Technologies (NYSE: DELL) and Lenovo both formalized their own consumption-based pricing offerings after GreenLake began to gain traction, although Dell Technologies did have informal offerings emerge around the same time as GreenLake initially. With COVID-19, the edge becomes increasingly more important as organizations deploy new workloads in their factories, office spaces and retail locations to ensure public safety while returning to work.

HPE’s workplace portfolio of solutions is attractive for several reasons. HPE’s existing infrastructure portfolio is augmented by HPE Aruba’s connectivity engine and associated services through HPE Pointnext Services, which combines expertise across workplace networking and IoT. The combined offering is then layered with GreenLake and sold as a use-case-based package to end customers, the primary benefits being the efficiencies gained in conjunction with the fact that the solutions are positioned and sold as business outcomes. Essentially, HPE takes care of the grunt work normally weighing down the end user but offers increased manageability and increased control at a reduced effort through GreenLake, leveraging the existing expertise within its organization to reimagine how the world of knowledge-based employees works and what is necessary to make it operate seamlessly in a hybrid model.

IT vendors are poised to solve the challenges that have arisen in the wake of the COVID-19 outbreak, and Hewlett Packard Enterprise (HPE) is a prime example of a vendor that, in response to the pandemic, is addressing previously unforeseen challenges by formalizing offerings pertaining to the workplace. Hybrid working was a pre-existing trend that COVID-19 has accelerated. However, for those individuals working in a knowledge-based field or with school-aged children, how they work and learn has fundamentally and permanently shifted. Further, people with non-knowledge-based jobs, many of whom lost work due to COVID-19, will find in-person work again, and these jobs will also see a fundamental shift in how they are performed to ensure safety and productivity. HPE’s announcements today at Workplace Next highlight how the company’s portfolio can be leveraged to ease customers’ COVID-19 mandated digital transformations.

Remote work requirements will accelerate cloud adoption road maps, fueling public cloud growth

With Amazon Web Services (AWS), Microsoft, Google and Alibaba established as the IaaS cloud market leaders, Technology Business Research, Inc. (TBR) has noted an increase in partner ecosystem activity, particularly among IT services vendors, such as Accenture, Infosys and Cognizant, that are vying for a share of cloud services like migration and implementation.

Consolidation will accelerate as leaders embrace coopetition, evidenced by activity from Microsoft and Oracle that allied to target AWS’ dominance in the IaaS space. This trend will further separate the leaders from the rest of the pack while creating an adjacent opportunity as customers deploy multivendor and hybrid cloud environments — which bodes well for infrastructure specialists such as IBM’s Red Hat and VMware, particularly as the latter maintains its emphasis on being vendor agnostic. Further, TBR expects rising enterprise appetites around technologies like containerized applications will facilitate PaaS market momentum in the near term as customers develop and test the application frameworks internally before making them live on their hybrid architectures.

Public Cloud Market Forecast 2019-2024E

Overall Forecast

Though the COVID-19 outbreak is impacting the public cloud market, benchmarked vendors with the largest market share are positioned to protect their leadership, as a diverse install base buffers spending slowdowns in industries such as hospitality. Other vendors are relying on strategic investments in areas like data integration and multicloud management to carve footholds in PaaS and become more attractive among infrastructure leaders that are increasingly embracing vendor agnosticism to expand their IaaS addressable market.

Public cloud remains the largest and fastest growing segment of the cloud market. The outbreak of COVID-19 has forced enterprise customers to increase their usage of cloud infrastructure and solutions, a trend that will benefit leading cloud providers and lead to further consolidation in areas such as IaaS and PaaS through the current forecast period. The Public Cloud Market Forecast details how hybrid deployments, new use cases for enterprise apps, and trends in emerging technology will make public cloud even more relevant in the future.

Cloud supports enterprise needs related to COVID-19, facilitating public cloud revenue growth

Cloud supports enterprise needs related to COVID-19, facilitating public cloud revenue growth

With Amazon Web Services (AWS), Microsoft, Google and Alibaba established as the IaaS cloud market leaders, Technology Business Research, Inc. (TBR) has noted an increase in partner ecosystem activity, particularly among IT services vendors, such as Accenture, Infosys and Cognizant, that are vying for a share of cloud services like migration and implementation.

Consolidation will accelerate as leaders embrace coopetition, evidenced by activity from Microsoft and Oracle that allied to target AWS’ dominance in the IaaS space. This trend will further separate the leaders from the rest of the pack while creating an adjacent opportunity as customers deploy multivendor and hybrid cloud environments — which bodes well for infrastructure specialists such as IBM’s Red Hat and VMware, particularly as the latter maintains its emphasis on being vendor agnostic. Further, TBR expects rising enterprise appetites around technologies like containerized applications will facilitate PaaS market momentum in the near term as customers develop and test the application frameworks internally before making them live on their hybrid architectures.

Public cloud remains the largest and fastest growing segment of the cloud market. The outbreak of COVID-19 has forced enterprise customers to increase their usage of cloud infrastructure and solutions, a trend that will benefit leading cloud providers and lead to further consolidation in areas such as IaaS and PaaS through the current forecast period. The Public Cloud Market Forecast details how hybrid deployments, new use cases for enterprise apps, and trends in emerging technology will make public cloud even more relevant in the future.

IaaS providers focus on global expansion, while vendors with remote work-enabling SaaS capitalize on demand

1Q20 Public Cloud Benchmark infographic

While Amazon Web Services (AWS) continues to dominate the public cloud IaaS market, its rivals continue to expand in the space and even collaborate to take market share. Microsoft and Oracle added a new data center interconnection in Amsterdam, deepening the ties between the vendors as they enable customers to run Oracle workloads on Azure and integrate workloads between the vendors’ clouds. TBR believes Microsoft and Oracle will continue to improve their competitive position against AWS as more data center interconnections are added. In addition, TBR expects Alibaba will become a growing threat to AWS and other U.S.-based vendors as it builds out data centers in APAC and EMEA.

Public cloud remains the largest and fastest growing segment of the cloud market. Changes in customer acceptance, data integrations and innovation have combined to sustain the rapid growth of public cloud adoption. The Public Cloud Benchmark details how hybrid deployments, new use cases for enterprise apps, and trends in emerging technology will make public cloud even more relevant in the future.