It’s a competitive landscape for cloud computing players, and hybrid cloud solutions aim to fill the gaps in public cloud platforms. In fact, there are evolving market opportunities for longstanding titans such as Hewlett Packard Enterprise Co., as it builds up its flagship GreenLake platform to compete uniquely against the likes of newcomers and traditional players alike.

With an aim to deliver its entire portfolio as-a-service by 2022, HPE is making strides in the data management service market, announcing this week a new edge-to-cloud platform for analytics and data protection.

“HPE is a cloud player, and that’s the story that it is trying to get out there,” said Daniel Newman (pictured), principal analyst and founding partner at Futurum Research. “All the things that make up the cloud, the hardware, it’s the software, it’s the services, the platform, you have to put all these things together. And if HPE wants to be a public cloud experience, it has to have that same subset of services.”

Newman spoke with Dave Vellante, host of theCUBE, SiliconANGLE Media’s livestreaming studio, during the HPE GreenLake Announcement event. They discussed HPE’s move into the cloud markets, the benefits of software as a service and more. (* Disclosure below.)

Economies of scale

The software-as-a-service delivery model is more margin-friendly for HPE, with Newman citing two major improvements SaaS offers. One of the main improvements is the creation of expanded operational margins over time.

“It’s just economies of scale. You can utilize every resource more efficiently,” he said.“ There is some capital expenditure upfront, but that also on the back end creates the depreciation and different bottom-line profit creators.”

The other advantage of SaaS, according to Newman, is the revenue scale it generates.

“Most of it has to do with the fact that recurring revenue is beloved by investors, but it’s also really sticky and creates a ton of stability within the company for the culture of the business to say, hey, we have customers, they’re going to stay with us,” he said.

Newman and Vellante closed the conversation by homing in on the benefits of on-premises and why hybrid cloud is here to stay.

“Hyperscalers are going on-prem or moving to the cloud because it’s always going to be some group of different placements of workloads to ultimately get to that optimized result,” Newman explained. “Ultimately, it’s all about the efficiency of your organization trying to accomplish what your business is.”

Here’s the complete video interview, part of SiliconANGLE’s and theCUBE’s coverage of the HPE GreenLake Announcement event. (* Disclosure: TheCUBE is a paid media partner for the An HPE GreenLake Announcement event. Neither HPE, the sponsor for theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE