HPE announced its second-quarter financial results, with revenue of $7.2 billion, up 3%. The company saw significant growth in AI adoption, with over $900 million in AI systems revenue and a doubling of its AI business from the previous quarter. CEO Antonio Neri highlighted HPE’s leadership in water cooling technology for AI servers and its success with Green IT, as well as strong demand for its GreenLake offerings.
The company reported that liquid cooling capabilities on its AI servers have led to over 300 HPE patents. HPE also experienced strong demand for GreenLake offerings, with AI being the fastest-growing component of annual recurring revenue (ARR) this quarter. Storage and networking also maintained strong growth rates.
Neri discussed enterprise adoption of HPE AI servers, noting accelerated interest from customers. He also addressed supply chain constraints related to GPU demand, which have limited IT leaders’ ability to develop their enterprise AI strategies. The company aims to improve delivery times for AI servers, with the goal of delivering systems within six to 12 weeks.
Looking ahead, Neri sees potential for market recovery in cloud and traditional infrastructure markets. Traditional server orders have grown sequentially and year-over-year, with revenue increasing as customers transition to HPE ProLiant servers Gen 11. HPE’s GreenLake offering has benefitted from AI adoption among enterprise IT customers, with recent additions like GreenLake for file storage targeting AI’s unstructured data requirements.
CFO Marie Myers expects improved supply of GPUs for AI systems and increased demand for traditional servers to drive sequential revenue growth through fiscal 2024. Neri expressed confidence in HPE’s ability to meet supply chain challenges and capitalize on the growth opportunities presented by AI and other market trends.
Overall, HPE’s second-quarter results reflect strong growth in AI adoption, with significant revenue increases and continued success in its Green IT and GreenLake offerings. The company is focused on overcoming supply chain constraints and meeting the evolving needs of enterprise customers in the AI and infrastructure markets.
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https://www.computerweekly.com/news/366587834/HPE-takes-45bn-in-enterprise-IT-AI-server-orders