Per Trefis analysis, Amazon Web Services' (AWS) massive leadership in the public cloud space is likely to make it the preferred choice of customers wanting to adopt a private cloud offering, despite HP Enterprise's greater presence in the on-premise space.What is HPE GreenLake
GreenLake is HPE's version of consumption driven IT infrastructure. Essentially GreenLake is a subscription based IT infrastructure consumption model, as opposed to the typical on-premise (one time payment based) or public cloud (rented storage or compute from third parties such as AWS, Microsoft Azure, Google cloud etc). The obvious benefits for customers is their ability to have systems on premise (thus enhancing security) while paying for them as rented resources rather than shelling out large sums of money upfront. The ability to scale such systems, along with security and management features also expands the pie for HPE.
Given many companies have embraced the public cloud, the need for security dictates the need for on-premise systems, which can also upset IT budgets. HPE's on-premise offerings on a subscription basis allow the company to address this market. Since the number of clouds has also been growing, HPE's on-premise presence also helps the company enable hybrid environments for public cloud ready companies.How does GreenLake differ from AWS
AWS is the most recognized name in the public cloud space. After capturing a large share in the migration to on-premise to public cloud, AWS had tied up with VMware and launched its Outposts offering to extend its leadership in public cloud to the private cloud (on-premise) and hybrid cloud space.Conclusion
While AWS has run into issues such as customers considering AWS as a competitor due to Amazon's presence in AWS' customer segments, many of AWS customers reporting data breaches and AWS reporting the need for incremental salesforce investment (thus leading to margin weakness), AWS has a massive head-start against HPE.
As of the end of Q3 2019, while AWS reported $27 billion in future commitments for AWS, versus GreenLake's total contract value was $2.5 billion. The ~11x differential between the two companies' customer commitments points towards a clear preference for AWS.
c = a / b
Amazon Web Services (future commitments) [a]
HPE GreenLake (total contract value) [b]
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1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
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