But company will continue with sales of higher-end, non-customisable servers to Tier 2 and 3 customers
Hewlett-Packard Enterprise (HPE) has quietly announced plans to shutter its cloud server business, essentially halting sales of low-end servers to its cloud customers such as Microsoft and Google.
As pointed out by Fortune this week, HPE’s Tier 1 sales of customised cloud servers are counted in their thousands, but shifting such volumes means HPE incentivises customers with big discounts.
These discounts eventually ensured HPE’s profits were slim at best.
It fell to HPE president Antonio Neri to announce the move at a financial analyst presentation in San Francisco (you can view the slide over at The Register).
However, Neri said HPE will continue to sell higher tier, higher margin servers.