HPE
– Giacomo Lee/SDxCentral

Hewlett Packard Enterprise (HPE) is providing some balm amidst the ongoing memory crisis by guaranteeing price quotes on compute, storage, and infrastructure below $1 million.

Per a CRN interview with HPE SVP Simon Ewington, the move reverses HPE’s decision earlier this year to amend its quoting terms with the right to reprice existing orders for commodity cost increases between quoting and shipment. As covered by this title at HPE’s recent Discovery event, the firm began to course correct by doubling pricing quote validity from 15 days to 30 days.

According to Ewington, the new stance covers the majority of HPE transactions in compute, storage, and GreenLake Flex deals below $1 million net, with no adjustments to quotes between order and shipment.

The move was put down to an aggressive sales strategy from HPE EVP and Chief Sales Officer Phil Mottram, who took over from Heiko Meyer in September.

Ewington said the decision would help cement HPE’s position as a channel market leader, while stressing the ongoing memory crisis isn’t going away anytime soon.

Those comments echo HPE CEO Antonio Neri’s prediction that supply chain issues will linger into 2027, but without detriment to HPE customers thanks to close work with silicon and memory partners to secure supply. Amidst the soaring revenues of its most recent financials, HPE faces a record company backlog of $5.9 billion, primarily made up of “enterprise and sovereign orders,” according to Neri.

As explored in SDxCentral’s Memory & Storage Supplement, the global memory shortage is a direct consequence of AI inference outpacing supply, leading vendors and hyperscalers alike to explore ways of re-architecting storage. This has seen headline-grabbing initiatives like TurboQuant come to the fore, as well as high-bandwidth flash (HBF) releases from SK Hynix and Sandisk.

HPE’s new sales strategy throws down the gauntlet as rivals increase prices. These include Cisco, which revised customer and partner contract terms to accommodate changing component prices while leaving open further increases.

Extreme Networks, meanwhile, implemented a 7% price increase linked to supply-chain and memory-component pressures. According to CEO Ed Meyercord, customer resistance to the move had been negligible.