Hewlett Packard Enterprise (HPE) saw a significant increase in demand for artificial intelligence (AI) systems, with revenue more than doubling to over $900 million in the most recent quarter. CEO Antonio Neri attributed this growth to the improved availability of Nvidia’s H100 GPUs, which have helped drive enterprise interest in AI. This success has led to a 15 percent increase in HPE’s shares, with strong profitability in AI systems contrasting with rival Dell Technologies’ recent struggles. In addition to AI, server revenue sales also increased, leading HPE to raise its full-year sales guidance.
HPE’s focus on AI as a long-term driver of financial results is evident in its commitment to profitable growth through business discipline and attached services. By leveraging generative AI initiatives, the company aims to address shifts in gross margins while driving simplicity and efficiency. The implementation of chatbots and AI models for sales and service representatives further showcases HPE’s dedication to cost management and disciplined execution.
The success of AI systems has also led to increased interest from HPE partners, who see the potential for growth in enterprise AI solutions. By enabling partners with the necessary tools and resources, HPE hopes to drive AI partner scale and capture the significant market opportunity. With a broader AI channel strategy that caters to partners of all skill levels, HPE aims to create opportunities for its entire partner community.
Partners like Blue Mantis and CPP Associates have already expressed enthusiasm for HPE’s AI solutions, with expectations of strong sales growth and record interest from clients. Advizex, another HPE partner, has invested heavily in AI solutions and positioned itself as a leader in hybrid AI, emphasizing the importance of OEM support in closing deals. Overall, the demand for AI solutions, coupled with strong financial performance, indicates a promising future for HPE in the AI market.
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https://www.crn.com/news/ai/2024/hpe-sees-accelerating-demand-for-ai-systems-shares-soar-15-percent
