The Six Five team talks about Barclays selecting HPE GreenLake for their private cloud platform.
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Daniel Newman: We haven’t spoken about HP in a bit, but HPE, one of the absolute leaders in consumption-based on-prem or private cloud, made a really big announcement this week when Barclays selected their HPE GreenLake platform for their private cloud. This is a big one, Pat. This is going to be an opportunity for HPE and GreenLake to host more than a hundred thousand workloads for Barclays in their strategic hubs, which encompasses UK, U.S.A., across Asia.
I want to talk about a philosophical bit here because individual customer wins are always interesting, but the real question and the real thought process that goes through my head here is HPE has been a company… Talk about a company that’s been in the penalty box. As the entire market has gone up, HPE has been somewhat stagnant. Now, CEO Antonio Neri, you and I both have good relationships with Antonio. He’s been on our shows. He’s been on different… We’ve had a lot of interactions.
We talked to him around earnings, been on our pods. He was the first of these big IT infrastructure of ours and vendors, sorry, vendors, to basically come out and say, “You know, we’re going to pivot our business. We are going to go ARR. We’re going to go to cloud. We’re going to go to subscription and we’re going to do it by this time. We’re going to deliver success.”
A few weeks back we covered their earnings. We talked about the amount of growth and at that time, Pat, I said, “Watching GreenLake and watching the growth of their subscription business, the ARR in their GreenLake business, is going to be the key metric that’s going to demark whether or not long term the company is a success. How did they get that number up? THey’re going to get big wins. They’re going to need customers that are currently evaluating different architectures for hybrid and multicloud and making decisions about prem-based workloads and say, “Hey, do we want to work with a AWS? Do we want to work with a Oracle CLoud@Customer? Do we want to work with an Azure Stack? Do we want to work with Dell APEX? Do we want to work with Lenovo TruScale?”
There’s a couple of things going on. One is the overall space for hybrid cloud is growing a lot, so that means all of these companies have the opportunity to grow. The second thing that’s going on is they’re competing fiercely to be able to be the value provider, centralized control plane, workload placement. HPE was one of the first and is the earliest and has one of the most complete hybrid cloud consumption platforms to date. Again, I believe Cisco, I believe Dell, I believe Lenovo will all get better. I do believe the offerings from Google, AWS, Oracle, and Microsoft, of course, are going to become more comprehensive.
Neri was early. Neri had the right track, GreenLake [inaudible]. The entire GreenLake platform is far along and companies like Barclays clearly recognize it, Pat, and so this is a good win. It’s one win. They need many more wins, but the overall GreenLake, their whole Edge-to-cloud concept and platform is doing really well. This is an example of Neri executing to the commitment he’s made several years ago and continues to make today.
Patrick Moorhead: Yeah, so I’m going to get a little bit more granular than your awesome macro take, but this really got my attention. We see customer wins come across our email daily or hourly. Customer takeouts here and things like that. I see so many that sometimes I take most of them just with a grain of salt, but I am going to do a lot more research on this one. Here’s what I know, for this is a substantial win. I want to know… They even gave us an element of size, a hundred thousand workloads. Now, I don’t believe that’s a hundred thousand different applications because I think that is just completely too many. I think it’s likely 100,000 containers or 100,000 VMs. it’s global. It’s across the UK, U.S., and across Asia. It will have… It’s unified, meaning it will scale to the public cloud.
They didn’t say that, but I believe that’s what unified would be. Barclays only pays for the resources they consume with the option to reserve workloads and run them on demand. That is the public cloud promise and it’s one of the biggest of flexibility and I think that is cool. Capacity is available on demand, granular consumption-based pricing for compute memory and storage, public cloud. They even talked about different types of applications, so VDI, SQL databases, Windows server, and Linux. That, by the way, is why I believe that it’s a hundred thousand VMs or containers as opposed to a hundred thousand unique application.
I like the way that they ended the disclosure. GreenLake is at $5.7 billion in total contract value, 900 partners, 1250 enterprise customers across 50 countries across all industry sectors. What I like about the number of customers disclosures, it kind of reminds me of what PEER has done for years is they’ve had this multiyear list and number of customers that the only time you do stuff like that, in my opinion, Daniel, is when you have confidence that that number is going to keep growing and that number will likely be larger than your competitors.
It’s going to be interesting to see because Dell has a little bit of a larger footprint than HPE does because they also do PCs. Whether Dell jumps on the number of customers’ bandwagon with their as-a-service capabilities, but net-net, I think incredible win. I’m doing more research on this one. I want more details I want to know what public clouds they’re connecting it to. I want to know how many different applications are in there. Maybe Barclays will share it. I think it’s going to make a great writeup if I get the data, hint, hint, HPE.
Daniel Newman: Well, we’ll send this video over to them, I’m sure, and we’ll let them look, and note the question, HPE.