HPE’s Rahim: Pace of change in the data center is ‘extraordinary’
Following its record-setting third quarter , HPE said it expects cumulative AI network orders for fiscal 2026 to top $3 billion, exceeding its previous forecasts.
Following its record-setting third quarter , HPE said it expects cumulative AI network orders for fiscal 2026 to top $3 billion, exceeding its previous forecasts.
The short version
- The company also raised its fiscal 2027 networking revenue target, projecting growth percentages in the high teens to low 20s.
- Specific to data center networking, HPE is estimating revenue to grow at roughly 50% CAGR through fiscal 2029.
- “The pace of change in the data center is, quite frankly, extraordinary.
What happened
AI has fundamentally reshaped how infrastructure is designed and deployed,” Rami Rahim , executive vice president, president and general manager of HPE Networking, told analysts and others at the annual HPE Networking Investor Day . “And the reason is simple: You can invest billions of dollars into GPUs, but if the network can’t keep up with the traffic and the performance demands, those resources are not fully utilized.
Why it matters
So, as a result, networking has become a much more strategic part of the AI infrastructure stack.” “We are taking standards-based Ethernet to a new layer of the data center stack for the first time, so it’s unlocking a massive TAM [total addressable market].
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