HPE Reports High Q3 Revenue From AI Systems

Hewlett Packard Enterprise (HPE) has reported a strong third quarter performance for fiscal year 2024. The company generated impressive revenue growth, converting more orders for its AI systems to revenue.

This comes after the company unveiled NVIDIA AI Computing by HPE, a portfolio of co-developed AI solutions and joint go-to-market integrations that enable enterprises to accelerate adoption of generative AI. One of those solutions, HPE Private Cloud AI, which is generally available, is a turnkey solution that makes it easy for enterprises of all sizes to gain an energy-efficient, fast, and flexible option for sustainably developing and deploying generative AI applications.

“We further expanded our NVIDIA partnership by announcing NVIDIA NIM Agent Blueprints to HPE Private Cloud AI for multiple generative AI use cases. Integrating this catalog of pre-trained AI workflows into HPE Private Cloud AI will enable customers to speed time to value and deploy key AI use cases easily,” Antonio Neri, President and CEO at HPE explained.

In the previous quarter, HPE increased its revenue, increased demand with total company orders and a sequential increase in revenue across key business segments. Its non-GAP operating margin sequentially increased through cost discipline with non-GAAP diluted net earnings per share once again exceeding guidance.

“We also have received the first payment of $2.1 billion in proceeds from the sale of part of our equity position in H3C. I am pleased with this quarter’s results and optimistic as we head into the final months of our fiscal year,” Antonio Neri, President and CEO at HPE said.

Neri further said that HPE made significant progress over the last several years delivering on its edge-to-cloud vision. The company has accelerated innovation across all pillars of its strategy: networking, hybrid cloud, and AI — delivered through a unified cloud-native and AI-driven experience as part of HPE GreenLake cloud platform.

“Our AI leadership is built on decades of large-scale infrastructure expertise including technologies like direct liquid cooling that are powering our largest AI systems for model builders, service providers, and supercomputing users. Interest in our HPE AI solutions, particularly from enterprise and sovereign customers, continues to grow. AI systems orders climbed $1.6 billion in the quarter to a cumulative $6.2 billion since Q1 2023 – an increase of approximately $3.5 billion over the last year,” Neri noted.

In hybrid cloud, HPE has redefined the cloud space over the past several years by delivering an experience that is hybrid by design – with HPE GreenLake at the core of its strategy.

“We have transitioned our HPE server and HPE storage products to cloud-native and software-defined solutions, while adding unique software and services to the HPE GreenLake cloud platform. We are pleased with the momentum we’re seeing with customers who are turning to HPE GreenLake. In just the last three months, almost 3,000 new customers began using our HPE GreenLake cloud, and we added almost 10,000 more customers in the last year,” Neri explains.

Looking ahead, HPE’s revenue growth reflects the strength of its portfolio and the growing excitement customers have for its newest innovations, across AI, networking, and hybrid cloud. HPE is playing a crucial role in helping customers adopt this transformative technology across their business.

“As we look to the end of fiscal year 2024, I am confident in our leadership and team members to deliver for our customers, partners and shareholders,” Neri concluded.