‘We have become, as far as I know, the first vendor to reduce storage pricing [amid the memory and component price increases],’ says Simon Ewington, HPE senior vice president of worldwide channel and partner ecosystem. ‘We have reduced it on a select number of storage SKUs really focusing on our high- volume Alletra MP block configurations.’
HPE has cut storage prices on select “high-volume” Alletra MP block storage SKUs and lowered deal escalation pricing from $1 million to $500,000 as it steps up its bid to win more storage and compute business.
In an exclusive interview with CRN, HPE Senior Vice President of Worldwide Channel and Partner Ecosystem Simon Ewington said the changes are part of an all-out effort to win business by leading with partners. “We are really ensuring [with these changes] that we are helping partners be more competitive to win in the market,” he said.
The Alletra MP price cuts were made on July 20, even amid rising memory and component prices that have hit partners and customers hard.
“We have become, as far as I know, the first vendor to reduce storage pricing [amid the memory and component price increases],” said Ewington. “We have reduced it on a select number of storage SKUs really focusing on our high-volume Alletra MP block configurations. … Essentially this is about being more competitive in the low end of the market where the channel plays.”
The extent of the Alletra MP price cuts was not immediately available at press time.
HPE started making pricing actions to get more aggressive with its full portfolio with multiple price cuts in June and with other pricing actions in July. “Partners are starting to really see and feel it,” he said. “The changes we have made are starting to have a real impact on partners and their ability to win.”
Pat O’Dell, the head of HPE’s North America Partner Advisory Council and managing partner at CPP Associates, Clinton, N.J., No. 356 on the 2026 CRN Solution Provider 500, said he has been heartened by the new competitive storage pricing. “HPE has been getting more and more aggressive,” he said. “That’s good for partners.”
The Alletra MP price cuts come in the wake of new storage incentives that amount to a 24 percent potential payback for partners.
The potential payback includes a competitive storage take-out incentive of 15 percent up-front margin and a 9 percent rebate aimed at displacing storage competitors in accounts. “We have seen some great take-up with that,” said Ewington.
In the compute business, the deal escalation pricing reduction is one of a number of moves HPE has made recently to enable partners to be more price-competitive.
HPE has also moved its compute new business opportunity incentive lookback—which rewards partners for upgrading existing HPE accounts—from a five-year lookback to three years, which is now aligned with the three-year period for the new business opportunity for the storage business, said Ewington. “This makes it simpler for partners,” he said. “It also broadens the opportunity for partners.”
The new business opportunity provides up-front margin of 6 percent on compute and 10 percent on storage. That is separate from the storage competitive takeout, which provides 15 percent for taking out a storage competitor.
Storage Competitive Takeout ‘Well Received’ By Partners
The storage competitive takeout has been “very well received” and is scaling much better than expected, said Ewington. “It seems to really have caught the attention of the channel because it is very rich,” he said. “It’s up to 24 percent in enhanced margin, 9 percent rebate and 15 percent up-front margin. It is very attractive.”
In addition, HPE has boosted its compute business with new instant pricing and accelerated lead times for aggressively priced Smart Choice server SKUs, said Ewington.
The biggest game-changer, partners said, is HPE changing its contractual terms to guarantee price quotes on compute, storage and GreenLake Flex deals below $1 million despite rising memory prices and shipment delays plaguing the industry. “That is huge,” said the CEO of a CRN Solution Provider 500 solution provider, who did not want to be identified. “Competitors are going to have to respond. We just met with a customer that was upset about the changes in pricing upon shipment by an HPE competitor.”
HPE Executive Vice President and Chief Sales Officer Phil Mottram, who has been driving a more aggressive HPE sales offensive since taking the top sales job last November, disclosed the guaranteed pricing on HPE compute, storage and GreenLake Flex deals under $1 million in an internal message to the HPE global sales team Tuesday.
In addition, HPE has extended price quote validity from 14 days to 30 days for servers, storage and GreenLake Flex.
The HPE changes come with major competitors maintaining 30- day price quote validity and refusing to guarantee price quotes amid rising memory prices.
In fact, some competitors are changing prices—sometimes as much as doubling initial partner price quotes—upon shipment.
HPE Is Being ‘More Aggressive’
Bob Panos, president of American Digital, Schaumburg, Ill., a top HPE partner, said he is “very excited” about the more aggressive sales charge—including more competitive pricing—under Mottram’s leadership.
“There has been an overall shift in HPE’s demeanor,” said Panos. “HPE is not sitting back on their heels. They are being more proactive. They are going into the market headfirst and being aggressive in a smart way. They are still HPE at the core, but they are being more aggressive in the North America market. We are seeing that in our backyard. We are very excited about the messaging coming out of HPE.”
Panos said he expects the more aggressive stance to pay off in double-digit sales growth for American Digital. “We expect a very strong second half,” he said. “Customers are not slowing down their purchases.”
Ewington said the many recent changes are all aimed at helping partners be more successful at winning business. “This is another example of doing what we can to help partners be successful,” he said.
HPE Vice President of North America Channel and Partner Ecosystem Jeremiah Jenson said HPE is moving aggressively on all fronts to “win new customers and take new share.”
Jenson urged partners to compare the “outcomes” that come from partnering with HPE versus other companies.
“We know we have leading technology and programs, and now we’re standing behind our partners to allow them to go execute and be aggressive with customers with the tools that we have given them, whether that is pricing or program tools or the greatest technology in the industry,” he said. “Now is the time to lean in with HPE because we are putting real meaningful action behind what we are saying. These are not just words. These are commercial terms that are in the market.”
