Microsoft and HP Enterprise – From foe to friend on cloud

A month after announcing the failure of its own public cloud service imminent, Hewlett Packard Enterprise (HPE) is betting big on Microsoft Azure.

During the recent fourth-quarter earnings call — the last call of the 86-year-old Hewlett-Packard Co. before the company is separated into HP Inc. and HPE — CEO Meg Whitman revealed that HPE will cooperate with Azure as a preferred public cloud provider. The move would give HP’s Helion public cloud customers another option when that service is shuttered on Jan. 31.

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CEO Meg Whitman revealed that HPE will cooperate with Azure as a preferred public cloud provider

Thus, Microsoft and HP Enterprise are about reviving an historic partnership where the fortunes of one are stick with the fortunes of the other. To return the main information, HPE will “serve as a preferred provider of Microsoft infrastructure and services for its hybrid cloud offerings.”

The deal means that HPE will be a reseller of Azure, which is potentially benefited for Microsoft given HPE’s massive enterprise customer base.

The HPE deal is expected to improve Azure extra growth runways over the coming years. From being a top competitor to Microsoft Azure, the cloud platform will now become a key partner.

Take a look back, the two tech giants had a close -knit working relationship when Windows and Windows Server started moving into the enterprise, with HP shipping hardware preloaded with Microsoft software. Now they will see each other with the second alliance to keep both companies’ prospects alive when customers start to focus on cloud computing.

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With this latest partnership, HPE really becomes a reseller of Microsoft Azure

It must be emphasized that the new Azure/HP partnership is much deeper level of cloud cooperation than the ongoing arrangement between HPE and another rival of MicrosoftAmazon cloud, AWS. With this latest partnership, HPE really becomes a reseller of Azure, while in the case of AWS, HP just simply gives support for the cloud instead of directly reselling the cloud service. This means that effectively HPE will not be reselling cloud services by two rival vendors at the same time to avoid potential troubles for the companies.

In fact, Microsoft’s ambition is to attracting enterprise cloud customers who are intend to move to Amazon Web Services. About HP Enterprise (HPE), it would like to breathe new life into its role as a supplier to the enterprise.

The more cloud services the enterprise adopts, the fewer HP-produced servers it wants. Therefore,  HP’s PC and server business has been going out. Revenue shrinks 9% in fiscal 2015. But what if some enterprises expect Microsoft-like cloud architecture for hybrid cloud computing? Microsoft has the architecture and has made it public, but it doesn’t have a big-name supplier. That could be the reason HP comes in.

In fact, among all big cloud vendors in the tech market, Microsoft is reported as one of the most complete, if not the most complete, hybrid cloud strategies. It leads to the success of the cloud platform, with consistently kept triple-digit growth for years now.

While Microsoft’s hybrid cloud strategy has done a good job, and the HPE deal could also prove to be one of the best the company has struck. The deal should help Azure maintain its impressive growth over the coming years.

HPE’s partnership with Microsoft goes much more than Azure. Earlier this month, HPE introduced new consulting services for customers expected to roll out Windows 10-compatible applications. The release also consists of cloud and mobility consulting services, as well as vertical industry application transformation.

Phuong Tram

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