Antonio Neri: Sure. Thank you, Simon. Well, first of all, let me start by saying, we have a unique strategy and a very diversified portfolio. Some of our competitors don’t have the breadth and depth of our portfolio. Some of them are just playing compute and storage, some of them play just in storage, some of them only play in networking. And by the way, let’s remind ourselves that one-third of our recurring revenues come from services, which is unique in our space. So we have a unique portfolio, which is incredibly relevant in the mega trends we see in the market. But we have done really well, I will say, Simon, is we brought all that unique portfolio in an integrated solution and experience through HPE GreenLake. And now the HPE GreenLake is a winning strategy for us, because it’s very hard to do.
One thing is to offer just a subscription model on some sort of solution. But when you leverage a true as-a-service model across all line of businesses, let me remind you, architecturally, I drove a vision with the team that everything we do, whether you consume it as a service or you consume it in a traditional way, that entire experience is delivered now to HPE GreenLake. Whether you deploy a compute node somewhere, whether in the cloud or premise or at the edge, you need a subscription to that compute node. Whether it’s the storage business. Now you asked about the storage. This product, HPE Alletra and Tarek mentioned this, is the fastest product in the history of the company, has grown triple digits on a consistent basis. And you will see more announcement about this platform going forward, but it was conceived to be a SaaS-led offer.
And so that’s why it’s fueling also the recurrent revenue as we go forward. And I think the combination of that gives the customers a unique experience instead of buying three different things for people, they can consume it all through one integrated experience. And that’s why we are confident. Now on the compute side, obviously, that compute business go through their own processes and cycles, right, because we have CPUs that come on and off at different time of the year or years. But Tarek said, we have three concurrent platforms going on that gives us a lot of flexibility to attack specific customer segments with different configure and pricing. And generation 11 is unique because we address three specific needs, the hybrid cloud need, the security they need and the workload optimization.
And it comes with unique technologies that actually lift the UP, because now it’s more structural, because we’re adding DDR5 memory, which basically means more content into the server. And that’s why we believe we can manage through this transition. But, I mean, if you look at the performance of that business, it was best in class, 90% year-over-year growth and an amazing 17.6% operating profit. And when you look at some of our competitors, as a combined business, not even come to the same number we delivered just on compute.
Jeff Kvaal: Simon, thanks very much. Let’s move to the next question, please.
Operator: Our next question will come from Amit Daryanani with Evercore. You may now go ahead.
Amit Daryanani: Thanks for the question and congrats on the quarter. I was wondering if you could just talk about what’s the timing for the H3C transaction from here? And then how do you think about the usage of the proceeds that you get from here? Because, I think, if you sell the stake you have, it would be dilutive by about $0.17 to $0.18 of EPS line. So I’m just wondering, how do you think about using the proceeds and offsetting the dilution potentially? Thank you.
