“We’re optimistic about the HPE Juniper opportunity,” said C.R. Howdyshell, CEO of Advizex, a Myriad360 company. “HPE has demonstrated proven data center networking success with large enterprise customers. We see a significant HPE Juniper opportunity in both the neocloud and enterprise markets.”
HPE predicted what amounts to a data center networking boom and, to prove its point, announced a blockbuster $1.2 billion order for its new AMD Helios AI Rack by HPE systems with scale-up networking switching and software.
The deal with privately held data center neocloud provider and HPE partner Vultr is the first HPE AMD Helios system order.
HPE said it sees a “broad and expanding networking opportunity across its portfolio, which serves enterprise and service provider customers, including hyperscalers and neoclouds.”
As a result, HPE raised its projections for its networking segment revenue to grow at a high-teens percent CAGR from FY26 through FY29. It is also disclosing its expectation that the segment will maintain an operating margin target of mid-to-high 20s percent from FY27 through FY29.
What’s more, HPE said it expects to “outgrow the market growth rates” with a plan to “gain share over the next three years in Data Center Networking, Routing, and Campus & Branch.”
The announcements, which came as part of an HPE Networking Investor Day in Sunnyvale, Calif., sent HPE shares up five percent or $3.30 to $64.72 in midmorning trading.
C.R. Howdyshell, CEO of Advizex, a Myriad360 company, which was named HPE Global Networking Partner of the Year 2026, said Advizex and Myriad see a significant HPE-Juniper AI and data center networking opportunity.
“We’re optimistic about the HPE Juniper opportunity,” said Howdyshell. “HPE has demonstrated proven data center networking success with large enterprise customers. We see a significant HPE Juniper opportunity in both the neocloud and enterprise markets. If you want to get new customers, HPE Juniper is a great door opener. Enterprise customers are open to the Juniper Mist networking conversation. The Juniper Mist discussion leads right into the AI networking opportunity.”
Howdyshell said the Myriad-Advizex plan is to double its HPE Networking business over the next 24 to 36 months.
HPE said it is raising its Fiscal Year 2027 networking segment revenue growth outlook to between high teens to low 20s percent. The company expects its networking segment operating margin to be in the mid-to-high 20s percent range
Nalit Patel, CEO of All Solutions, a Livingston, N.J., HPE partner, said the HPE networking opportunity potentially amounts to what could be a $5 million to $20 million quarterly sales opportunity for his company.
That said, Patel cautioned that the biggest hurdles to achieving that sales growth are the networking component and memory supply chain issues and the price increases that are hitting customers.
Patel said after winning deal partners are struggling across all vendor lines to fulfill the orders as prices increase, leading to frustrated customers.
“By the time you are done with design, power, networking the biggest hurdle is the supply chain,” said Patel. “You get it all done with the customer signed up and ready to go with the date decided. Then guess what? It’s like a water pipe broke because the supply chain is so bad you can’t get the order fulfilled.”
Patel said customers are being forced to break up projects into piecemeal deals. “When you do a piece meal deal you don’t get everything you need and it hits customer satisfaction with regard to the cost,” he said.
HPE, for its part, said in order to “support strong demand and mitigate supply constraints” entering FY27, the company “previously announced it doubled its quarter-over-quarter networking supply purchase commitments in the third quarter of FY26.”
Patel said partners are feeling the impact of the supply chain price increases across the board with customers exasperated by the price increases.
“A purchase commitment is one thing, what you need to look at is what percentage of orders are fulfilled,” he said. “We have to deal with what’s happening now. You can’t look at what is going to happen in the second or third inning.”
