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Hewlett Packard Enterprise's (HPE) GreenLake Drives Customer Base
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Hewlett Packard Enterprise (HPE - Free Report) has been making significant strides in the technology sector, largely due to its edge-to-cloud platform, GreenLake. This platform is driving a new wave of growth for the company by meeting the rising demand for high-performance computing (HPC) solutions. A recent example of this success is Toyo Tire Corporation's decision to adopt the GreenLake cloud platform for its seventh-generation HPC system.
Revolutionizing Tire Development With GreenLake
The latest HPC system provided by HPE’s GreenLake is a game-changer for Toyo Tire. It is three times more powerful than the company's previous system, allowing for faster and more precise processing of vast amounts of structural tire data. This enhanced computational power is crucial for Toyo Tire as it accelerates the development of next-generation tires. The ability to perform large-scale design simulations more efficiently reduces the time needed for innovation, particularly in training AI models, which are central to Toyo Tire’s forward-looking strategies.
This collaboration exemplifies how GreenLake is not just a cloud platform but a strategic tool that companies can leverage to stay ahead in their industries. The success of such partnerships has been reflected in HPE’s stock performance, which has returned 10.5% year to date, outpacing its competitors like Cisco (CSCO - Free Report) and Lenovo, which have lost 0.6% and 13%.
Hewlett Packard Enterprise Company Price and Consensus
HPE's GreenLake is gaining traction for several compelling reasons. At its core, GreenLake offers a flexible and scalable solution that allows businesses to manage their IT resources with unprecedented efficiency. This flexibility is crucial in a world where digital transformation is no longer optional but necessary for survival.
Another key factor is GreenLake’s consumption-based pricing model. This model offers predictable economics, which is particularly attractive in today’s cost-conscious business environment. Companies like Toyo Tire can pay only for what they use, achieving significant cost savings while still accessing cutting-edge technology. This combination of flexibility, scalability and cost-efficiency helps GreenLake become the platform of choice for enterprises looking to enhance their digital capabilities.
Continuous deal wins are driving Hewlett Packard Enterprise higher amid the current highly volatile market environment.
GreenLake: A Pillar for Long-Term Growth
HPE’s GreenLake isn’t just a short-term solution, it’s a strategic asset poised to support the company’s long-term growth. As the demand for cloud-based HPC systems continues to rise across various industries, Hewlett Packard Enterprise is well-positioned to capture a significant share of this expanding market. The platform’s ability to adapt to the evolving needs of businesses makes it an attractive option for those looking to accelerate their digital transformation journeys.
The numbers speak for themselves. In the second quarter of fiscal 2024, the number of organizations using GreenLake grew nearly 9% to 34,000. The platform's total contract value now exceeds $15 billion, with an annualized revenue run rate that has increased 39% year over year, reaching more than $1.5 billion. This growth underscores HPE's successful transition to a software and services-centric business model.
Furthermore, GreenLake’s appeal is only set to increase with the rise of artificial intelligence. As more enterprises and even governments seek to enhance their cloud capabilities, GreenLake is emerging as a key enabler, driving not just recurring revenues but also long-term growth for HPE.
Strategic partnerships with tech giants like Microsoft (MSFT - Free Report) and NVIDIA (NVDA - Free Report) further enhance GreenLake’s capabilities. Hewlett Packard Enterprise’s collaboration with Microsoft to extend the Azure AI platform to its infrastructure and with NVIDIA for co-engineered enterprise solutions highlights the platform’s growing ecosystem. These partnerships are crucial as they allow HPE to continuously innovate, offering more robust solutions to its clients.
Conclusion
HPE’s GreenLake platform is more than just a cloud solution, it is a strategic asset driving the company’s growth in a competitive tech landscape. The platform’s success with clients like Toyo Tire highlights its ability to deliver powerful, scalable and cost-effective solutions that meet the complex demands of modern enterprises.
As Hewlett Packard Enterprise continues to innovate and expand its GreenLake ecosystem, it is well-positioned to capture a growing share of the cloud computing market, ensuring long-term growth and stability. Currently, HPE carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Hewlett Packard Enterprise's (HPE) GreenLake Drives Customer Base
Hewlett Packard Enterprise (HPE - Free Report) has been making significant strides in the technology sector, largely due to its edge-to-cloud platform, GreenLake. This platform is driving a new wave of growth for the company by meeting the rising demand for high-performance computing (HPC) solutions. A recent example of this success is Toyo Tire Corporation's decision to adopt the GreenLake cloud platform for its seventh-generation HPC system.
Revolutionizing Tire Development With GreenLake
The latest HPC system provided by HPE’s GreenLake is a game-changer for Toyo Tire. It is three times more powerful than the company's previous system, allowing for faster and more precise processing of vast amounts of structural tire data. This enhanced computational power is crucial for Toyo Tire as it accelerates the development of next-generation tires. The ability to perform large-scale design simulations more efficiently reduces the time needed for innovation, particularly in training AI models, which are central to Toyo Tire’s forward-looking strategies.
This collaboration exemplifies how GreenLake is not just a cloud platform but a strategic tool that companies can leverage to stay ahead in their industries. The success of such partnerships has been reflected in HPE’s stock performance, which has returned 10.5% year to date, outpacing its competitors like Cisco (CSCO - Free Report) and Lenovo, which have lost 0.6% and 13%.
Hewlett Packard Enterprise Company Price and Consensus
Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote
What’s Driving GreenLake’s Adoption?
HPE's GreenLake is gaining traction for several compelling reasons. At its core, GreenLake offers a flexible and scalable solution that allows businesses to manage their IT resources with unprecedented efficiency. This flexibility is crucial in a world where digital transformation is no longer optional but necessary for survival.
Another key factor is GreenLake’s consumption-based pricing model. This model offers predictable economics, which is particularly attractive in today’s cost-conscious business environment. Companies like Toyo Tire can pay only for what they use, achieving significant cost savings while still accessing cutting-edge technology. This combination of flexibility, scalability and cost-efficiency helps GreenLake become the platform of choice for enterprises looking to enhance their digital capabilities.
Continuous deal wins are driving Hewlett Packard Enterprise higher amid the current highly volatile market environment.
GreenLake: A Pillar for Long-Term Growth
HPE’s GreenLake isn’t just a short-term solution, it’s a strategic asset poised to support the company’s long-term growth. As the demand for cloud-based HPC systems continues to rise across various industries, Hewlett Packard Enterprise is well-positioned to capture a significant share of this expanding market. The platform’s ability to adapt to the evolving needs of businesses makes it an attractive option for those looking to accelerate their digital transformation journeys.
The numbers speak for themselves. In the second quarter of fiscal 2024, the number of organizations using GreenLake grew nearly 9% to 34,000. The platform's total contract value now exceeds $15 billion, with an annualized revenue run rate that has increased 39% year over year, reaching more than $1.5 billion. This growth underscores HPE's successful transition to a software and services-centric business model.
Furthermore, GreenLake’s appeal is only set to increase with the rise of artificial intelligence. As more enterprises and even governments seek to enhance their cloud capabilities, GreenLake is emerging as a key enabler, driving not just recurring revenues but also long-term growth for HPE.
Strategic partnerships with tech giants like Microsoft (MSFT - Free Report) and NVIDIA (NVDA - Free Report) further enhance GreenLake’s capabilities. Hewlett Packard Enterprise’s collaboration with Microsoft to extend the Azure AI platform to its infrastructure and with NVIDIA for co-engineered enterprise solutions highlights the platform’s growing ecosystem. These partnerships are crucial as they allow HPE to continuously innovate, offering more robust solutions to its clients.
Conclusion
HPE’s GreenLake platform is more than just a cloud solution, it is a strategic asset driving the company’s growth in a competitive tech landscape. The platform’s success with clients like Toyo Tire highlights its ability to deliver powerful, scalable and cost-effective solutions that meet the complex demands of modern enterprises.
As Hewlett Packard Enterprise continues to innovate and expand its GreenLake ecosystem, it is well-positioned to capture a growing share of the cloud computing market, ensuring long-term growth and stability. Currently, HPE carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.