The IT solutions landscape is experiencing a major shift, with artificial intelligence-driven managed services taking center stage as solution providers move away from traditional hardware sales.

This transformation is being driven by AI, offering providers the chance to differentiate themselves through advanced technology expertise and the development of innovative service practices. As they adapt to these changes, providers are evolving into new roles, focused on harnessing AI to lead the way in this new era, according to Simon Ewington (pictured, right), worldwide channel and partner ecosystem leader at Hewlett Packard Enterprise Co.

American Digital’s Bob Panos and HPE’s Simon Ewington talks to theCUBE about AI-driven managed services.

“What we’ve been trying to do is to help partners evolve at their own pace. We started doing that with Partner Ready Vantage with the as-a-service journey,” Ewington said. “We helped partners like American Digital to develop their own services practices because that’s where the margin is for many of the partners. And now we’re trying to do the same with AI because a lot of partners don’t really understand how do they start that AI journey.”

Ewington and Bob Panos (left), vice president of sales and service at American Digital Corp, spoke with theCUBE Research’s Dave Vellante and Rebecca Knight at HPE Discover, during an exclusive broadcast on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed the shift from hardware sales to managed services, the importance of differentiation through expertise and flexible service offerings. (* Disclosure below.)

Shifting to AI-driven managed services for better margins

HPE and American Digital are transitioning to as-a-service models, focusing on recurring revenue and using a flywheel approach to drive up partner services, with a multi-layered partnership providing feedback to HPE, according to Panos.

“So HPE, think of that, where a partner of yours is willing to listen at all levels so you can collaborate and give that real time feedback. Well, real time as quickly as you can in this business,” Panos said. “But my point is, yes, they hear us at all levels. They take that feedback and they try to make themselves better. And we see that. That’s why we partner almost exclusively with HPE.”

Expanding TAM is crucial for finding new customers and building relationships. The HPE and American Digital partnership is growing and innovating with a focus on AI, hybrid networking and expanding market access, Panos concluded.

“For us, it’s all about customers, new customers and those customer relationships. My team, that’s the hardest thing they have to do, is to find a new customer,” Panos said. “And if you have another technology area that can allow you to get access to more of those new customers, have a different conversation, a new entry point; because trust me, over 40 years, we’ve kind of gone through the customers that had a propensity to buy HPE. Now you have a whole new market with Juniper.”

Here’s the complete video interview, part of SiliconANGLE’s and theCUBE Research’s coverage of HPE Discover:

(* Disclosure: TheCUBE is a paid media partner for HPE Discover. Neither Hewlett Packard Enterprise Co. and Intel Corp., the primary sponsors of theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE