{"id":4453,"date":"2020-08-27T18:10:20","date_gmt":"2020-08-27T16:10:20","guid":{"rendered":"https:\/\/tekmart.co.za\/t-blog\/?p=4453"},"modified":"2020-08-27T18:10:20","modified_gmt":"2020-08-27T16:10:20","slug":"hpe-sees-it-spending-increase-expect-server-prices-to-rise","status":"publish","type":"post","link":"https:\/\/tekmart.co.za\/t-blog\/hpe-sees-it-spending-increase-expect-server-prices-to-rise\/","title":{"rendered":"HPE sees IT spending increase \u2013 expect server prices to rise"},"content":{"rendered":"Reading Time-approximately:<\/span> 2<\/span> minutes<\/span><\/span>\n

Organisations are buying more tech to keep operations running, but DRAM shortages will lead to server price increases<\/strong><\/h2>\n\n\n\n
\"Cliff<\/figure>\n\n\n\n

By Cliff Saran<\/a><\/p>\n\n\n\n

Published:\u00a026 Aug 2020<\/strong><\/p>\n\n\n\n

HPE has reported net revenue of $6.8bn for the third quarter of 2020, down 6% compared with Q3 2019.<\/p>\n\n\n\n

The company reported a 12% decline in revenue in its intelligent edge business to $684m, while its compute business reported flat revenue of $3.4bn. HPE\u2019s high-performance compute and mission-critical systems (HPC and MCS) business reported revenue of $649m, up 3% year-on-year. Storage revenue was $1.1bn, down 10% on Q3 2019.<\/p>\n\n\n\n

Antonio Neri, president and CEO of HPE, said: \u201cOur Q3 results are marked by strong execution and sequential growth. We significantly improved operational and supply chain execution and advanced our innovation agenda with the introduction of HPE GreenLake cloud services solutions,\u00a0our new HPE Ezmeral software portfolio, and our\u00a0planned acquisition of SD-WAN leader Silver Peak.<\/p>\n\n\n\n

\u201cWe gained momentum in key areas of differentiation and accelerated our as-a-service pivot with strong ARR [annual recurring revenue] growth and a record number of HPE GreenLake services orders. Navigating through the pandemic and planning for a post-Covid world have increased customers\u2019 needs for as-a-service offerings, secure connectivity, remote work capabilities and analytics to unlock insights from data that are aligned to our strategy. We see a tremendous opportunity to help our customers drive digital transformations as they continue to adapt to operate in a new world.\u201d<\/p><\/blockquote>\n\n\n\n

<\/p>\n\n\n\n

During the earnings call, Neri discussed component pricing, the supply of chips and the challenges of installing and testing HPC equipment at customer sites during the lockdown.<\/p>\n\n\n\n

In a transcript of the earnings call, posted on the\u00a0Seeking Alpha financial blogging site, Neri said installation of an HPC system at a customer\u2019s site can take weeks or even months. \u201cWe have installations which are very large,\u201d he said. \u201cIt takes many, many weeks. And, obviously, the global pandemic is not allowing us to have a lot of people on-site for cabling.\u201d<\/p>\n\n\n\n

According to the transcript of the call, HPE\u2019s chief financial officer, Tarek Robbiati, also addressed a question on the price of DRAM (dynamic random access memory) chips, which affects the cost of server hardware. He said that,\u00a0as in 2018, HPE will need to raise prices to maintain the profit margins it makes on its server products.<\/p>\n\n\n\n

During the earnings call, Neri responded to a question about IT spending and his response suggested that businesses are looking to buy more IT to support operations.<\/p>\n\n\n\n

Discussing where he has seen customer demand, Neri said: \u201cWe see steady demand and, obviously, there are areas that are stronger than others. But the general sense is as follows: first of all, they\u2019re looking to strengthen their operations and, therefore, IT plays a huge role with that, and IT resiliency is more important than ever. So, anything that comes with security and enables them to digitise their processes is on the growth side.\u201d<\/p>\n\n\n\n

Neri said HPE customers are also looking to get insight from data. \u201cWe see an acceleration of solutions related to AI [artificial intelligence] and machine learning, and that\u2019s why our big data storage saw another great solid performance,\u201d he added.<\/p>\n\n\n\n

Datacentres of tomorrow: What the future holds<\/strong><\/h2>\n\n\n\n

New technologies are widely-tipping to become a mainstay of datacentres in the future. Learn about new and emerging technologies that look set to shake-up the way datacentres are managed, monitored, powered and cooled as well.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Reading Time-approximately:<\/span> 2<\/span> minutes<\/span><\/span>Organisations are buying more tech to keep operations running, but DRAM shortages will lead to server price increases By Cliff Saran Published:\u00a026 Aug 2020 HPE has reported net revenue of $6.8bn for the third quarter of 2020, down 6% compared with Q3 2019. The company reported a 12% decline in revenue in its intelligent edge business to $684m, while its<\/p>\n

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