Cloud repatriation trends speak to enterprise AI consumption preferences
IT heavy-hitters Broadcom and HPE both announced quarterly financial results this week, and both firms reported growth fueled by enterprise investment into AI infrastructure and attendant systems.
Broadcom, fresh off the heels of the VMware Explore event that focused on cloud repatriation in the AI era, saw Q3 revenue up 47% from the year-ago period to more than $13 billion.
CEO Hock Tan said in a statement the results “reflect continued strength in our AI semiconductor solutions and VMware. We expect revenue from AI to be $12 billion for fiscal year 2024 driven by Ethernet networking and custom accelerators for AI data centers.”
Read this story for commentary from a Broadcom exec on the outlook for Ethernet, as opposed to NVIDIA’s InfiniBand, for AI infrastructure networking. Broadcom’s full financial results are available here.
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HPE reported 10% year-over-year quarterly net revenue growth to $7.7 billion propped up by a 39% quarter-over-quarter “driven by AI systems revenue,” the company said in a financial presentation.
HPE looks across its portfolio at AI, including its NVIDIA-enabled HPE Private AI solution, the integration of NVIDIA NIM Agent Blueprints into the HPE Private Cloud AI solution, bringing AI-enabled network detection and response capabilities into Aruba Networking products, and an AI Operations Copilot multi-vendor cloud observability and operations.
HPE CEO Antonio Neri said in a statement that the “strong third quarter…reflect[s] our momentum in delivering on our edge-to-cloud strategy across networking, hybrid cloud, and AI. We have driven meaningful innovation throughout our portfolio, which increases our relevancy with customers and positions us to continue to deliver profitable growth for shareholders.”