HPE Conducting ‘Orderly Exit’ from Operations in Russia
We've also got more news from AWS, Salesforce, Gartner on the public cloud market, and MSP SADA.
![Exit sign Exit sign](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/blt8e95f7fbae40eadc/652428c8d723c3659f16298b/5-Exit-Sign.jpg?width=700&auto=webp&quality=80&disable=upscale)
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Private cloud provider Hewlett Packard Enterprise said on June 1 it is leaving Russia and Belarus entirely.
“It is no longer tenable for us to continue operations in Russia and Belarus, and we are proceeding with an orderly exit of our remaining business in these countries,” HPE wrote in a blog.
The announcement follows the same news from parent company HP on May 31.
HPE — along with dozens of other big-tech firms, many of which exited right away — slowed its business with Russia and Belarus after Vladimir Putin invaded Ukraine earlier this year. HPE suspended its sales and shipments to the two countries in late February. However, it did not stop doing business there completely until now.
HPE says it is “committed to transparent communication with our impacted team members, customers and partners as we wind down business operations in the two countries.”
Fresh off the heels of the Amazon Web Services Public Sector Summit, Jeffrey Kratz, general manager of AWS’ worldwide public sector partner program, tells Channel Futures that managed service providers, resellers and other smaller partners can expect more one-on-one attention from the public cloud provider.
AWS is doing “quite a bit” for partners, “from small ones to the big ones,” he told Channel Futures.
That includes “being proactive with our outreaches and workshops,” conducting a listening tour alongside Ruba Borno, vice president of worldwide channels and alliances, and continuing to “accelerate rapidly the number of services that are out there.”
AWS already has announced the Accelerated Development initiative to speed up the sales cycle. This will help smaller partners, not just the behemoths, Kratz said. Requirements include securing executive buy-in before joining. The effort aims to help partners become go-to-market ready in four to six months, rather than 18-24.
“That’s just way too long,” Kratz said.
The numbers from last year are in, and AWS is still the world’s largest IaaS public cloud services provider, according to new research from Gartner.
AWS racked up $35.4 billion in revenue in 2021, for a nearly 39% market share, according to Gartner.
Microsoft Azure remains at No. 2, with its 21% share and more than $19 billion in IaaS revenue last year.
China’s Alibaba follows at No. 3, with Google Cloud coming in at No. 4. Google Cloud, however, “saw the highest growth rate of the top five IaaS vendors,” wrote Sid Nag, VP analyst at Gartner, in a blog.
“This growth was driven by steadily increased adoption for traditional enterprise workloads as well as Google’s innovation in more cutting-edge capabilities such as artificial intelligence and Kubernetes container technologies, supported by an expansion of their partner ecosystem to reach a wider customer base,” Nag wrote.
Huawei, meanwhile, is the fifth-largest public cloud vendor in the world, with $4.2 billion in revenue.
Channel partners aligned with Salesforce surely are doing the happy dance this week. On June 1, the customer relationship management giant posted higher-than-expected first-quarter results. Salesforce reported $7.4 billion in revenue, a 24% increase from the same period in 2021. Analysts were looking for $7.38 billion.
Overall, the numbers show that Salesforce “is continuing to fire on all cylinders,” wrote Futurum Research analysts Daniel Newman and Todd R. Weiss in a June 2 blog.
To that point, the CRM provider’s subscription and support revenue reached $6.85 billion, up nearly 24% from last year. Meantime, professional services and other, unspecified, revenue hit $555 million. That’s a 30% jump.
“Salesforce has transformed itself from a disruptive SaaS growth company into a successful, substantial hybrid of growth and value in the marketplace,” Newman and Weiss wrote. “This shift is a byproduct of maturing into a category incumbent leader. However, it is still an innovator that is breaking its own revenue records, but it is also a robust recurring revenue machine that is making big bets in its products, services and acquisitions. In the end, we believe that it would be hard to think these bets will not pay off.”
With all the benefits cloud delivers — scalability, sovereignty and overall digital transformation — its dominance comes as no surprise.
“The IaaS market continues to grow unabated as cloud-native becomes the primary architecture for modern workloads,” wrote Gartner’s Nag.
Globally, the appetite for public cloud meant the IaaS market ballooned more than 41% in 2021, Gartner says. In dollar terms, that represents a total of almost $91 billion, up from $64.3 billion in 2020.
There’s more to come.
“The next phase of IaaS growth will be driven by customer experience, digital outcomes and the virtual-first world,” said Nag. “Emerging technologies that can help businesses bring experiences closer to their customers, such as the metaverse, chatbots and digital twins, will require hyperscale infrastructure to meet growing demands for compute and storage power.”
Google Cloud-only MSP SADA Systems says it’s seen 60% growth in the Canadian market since 2020.
The announcement comes after Toronto Mayor John Tory recently visited SADA at its headquarters in Los Angeles.
It also comes amid predictions from research firm IDC that demand for technologies including cloud computing and security in Canada will reach C$132.6 billion by 2025.
SADA has customers across Canada, and employees in Alberta, British Columbia, Manitoba, Ontario, Quebec and New Brunswick.
Google Cloud-only MSP SADA Systems says it’s seen 60% growth in the Canadian market since 2020.
The announcement comes after Toronto Mayor John Tory recently visited SADA at its headquarters in Los Angeles.
It also comes amid predictions from research firm IDC that demand for technologies including cloud computing and security in Canada will reach C$132.6 billion by 2025.
SADA has customers across Canada, and employees in Alberta, British Columbia, Manitoba, Ontario, Quebec and New Brunswick.
There’s a lot of activity in the cloud computing world this week. Have you heard the latest from Hewlett Packard Enterprise (HPE) regarding its operations in Russia? We have that in the slideshow above. Also, we dive a little deeper into Amazon Web Services’ strategy for smaller channel partners working in the public sector. We spoke with the company’s public sector head, who shared more about how AWS is enabling smaller managed service providers and resellers (who often feel overlooked by the world’s largest public cloud provider).
Then there’s Salesforce and its stellar earnings. The company’s channel partners are surely doing the happy dance. Finally, we have the latest from Gartner on global cloud vendor rankings and IaaS adoption, and a ditty from SADA about its own growth.
See our slideshow above for all the insight, starting with HPE’s new approach to operations in Russia.
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