

The company will continue to invest in R&D for its own IP products in this business unit such as its new file-as-a-service and Alletra MP offerings Alletra is driving a long-term mix shift to higher-margin, software-intensive as-a-service revenue.

Alletra revenue increased more than 100% Y/Y and grew triple digits from 1FQ23 for the 4th consecutive quarter, lifting total AFA growth to 20% Y/Y. Pivotal IP-owned products continue to get traction in the market, shown by the ramp of HPE Alletra offerings. In 2FQ23, storage revenue was $1.0 billion or 15% of total revenue, down 3% from 1FQ23 in actual dollars and up 2% in constant currency, with 7.9% operating profit margin, compared to 11.8% from 2FQ22. Global revenue reaches $7.0 billion, up 4% from the prior-year period and 9% in constant currency.

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