HPE Worldwide Channel Chief Hunter Is Leading Global Pay-Per-Use Partner Transformation

Hewlett Packard Enterprise Worldwide Channel Chief Paul Hunter says the global launch of the new GreenLake Flex Capacity services for partners is a "momentous" occasion given that it marks the first pay-per-use IT services model built by and for partners.

"These consumption services have explicitly been designed with partners and for partners," said Hunter, who worked closely with the worldwide Partner Advisory Board and the HPE Pointnext team to develop the offering.

"This really demonstrates our commitment to partners. This isn't a service that we have designed for ourselves that has been altered for partners. This is a service we have designed for partners for their customers. That is why I am really excited about it."

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The new HPE pay-per-use channel model, which is available globally, provides a robust rebate incentive aimed directly at addressing cash-flow issues that have hampered the ability of many partners to move from a capital expenditure reseller model to a recurring revenue services model.

"This completely changes the cash-flow demands on their P&Ls," said Hunter. "The way we have constructed the capacity services offer is we are helping partners with the cash-flow transition they need to make, and we are helping partners take advantage of the customer dynamic that wants to buy on a monthly basis."

As part of the new offering, HPE is moving from a co-sell model on the Pointnext services to a partner-led model in which HPE partners will hold the paper on the Pointnext services offerings. That's a significant breakthrough from other leasing and financial services offerings that partners have used to battle public cloud offerings.

Steinar Sønsteby, CEO of Atea, a $4.5 billion European infrastructure giant that has been piloting the new pay-per-use channel model, said HPE has taken the lead among traditional vendors in delivering a public cloud experience for customers.

The new model provides a strong public cloud alternative with an on-premises pay-per-use model.

"HPE has developed something here that looks like and feels like public cloud, but with more control over the data and the intellectual property for the customer," said Sønsteby.

Sønsteby, a member of HPE's Worldwide Advisory Board, said Hunter and the HPE team have done a lot of work with partners on the economic model for the channel.

"It took a lot of work to figure out the payment method and risk sharing," he said. "HPE has made some smart decisions here."

Key to the success in bringing the new GreenLake Flex Capacity services to market was HPE's acquisition of Cloud Cruiser -- a maker of software for cloud consumption metering, according to Hunter.

"The Cloud Cruiser asset, which is core to measuring usage, is completely stitched into the offering," he said.

In addition, partners will be able to add their own services directly into the consumption-based workload offers, said Hunter.

"These [infrastructure workload offers] are the building blocks to a services portfolio that partners can utilize to overlay their own value," he said. "We are creating ’one plus one equals three' for the customers. We are providing the building blocks, the partners are building the houses, and the customers are opening the front door."

Hunter says the new GreenLake Flex Capacity services offers are the first of a broader portfolio of consumption-based services that HPE will bring to market for partners.

"What we'll see is market reaction," he said. "Some of these workload consumption offers will grow faster than others. We'll add and complement them as we get feedback."

The new channel consumption model comes with customers demanding pay-per-use offerings as part of a "seismic shift" sparked by the public cloud, said Hunter.

"Customers increasingly are wanting to buy on a consumption basis," he said. "Public cloud has taught them that, and they have gotten used to buying technology services. What we are doing is helping partners to take advantage of it. Rebates will be important but this is a market shift -- a market dynamic -- and we are helping partners take advantage of that market shift and market dynamic in a way that I don't think anyone else is."