With virtualization costs rising, cloud environments sprawling, and fragmented infrastructure, enterprises are under pressure. Managing compute, storage, and networking in isolation has become unsustainable—slowing down innovation, burning through resources, and complicating the path to AI readiness. The result: organizations are rethinking their infrastructure strategies and looking for unified, hybrid models that balance the scale of public cloud with the control of private.
HPE saw this coming. Back in 2019, it introduced disaggregated hyper-converged infrastructure (dHCI) to modernize private cloud. Fast forward to 2024—virtualization costs spiked, and HPE responded with VM Essentials, a lower-cost, more flexible alternative.
HPE Expands Hybrid Cloud and Virtualization Offerings
HPE is rolling out next-generation disaggregated hyperconverged infrastructure (dHCI) innovations designed for both data center and edge environments. Central to the announcement are two key updates: the launch of
HPE Morpheus Enterprise Software for unified hybrid cloud management, and the
integration of HPE VM Essentials and Morpheus Enterprise into its private cloud portfolio. HPE Morpheus Enterprise enables centralized management of virtual machines, containers, and bare metal workloads across on-prem, edge, and public cloud environments. The software supports policy-based governance, chargeback features, and integration with third-party tools and services.
According to HPE, the platform helps customers optimize workload placement across diverse infrastructure based on cost, performance, and data privacy requirements. Its extensible architecture delivers centralized self-service, cost visibility, and automation across the hybrid estate. “There is no one-size-fits-all when it comes to cloud,” said
Rajeev Bhardwaj, VP, Chief Product Officer, Private Cloud and Flex Solutions, HPE. “Customers want the flexibility to position workloads based on price, performance, or privacy—and HPE Morpheus Enterprise gives them exactly that.” The platform delivers centralized self-service management, governance controls, cost visibility, and integration with third-party tools through its extensible architecture.
A Unified, Cost-Efficient Architecture Across Cloud and Edge
By embedding Morpheus capabilities into its Private Cloud Business Edition—powered by HPE Alletra Storage MP for data centers and HPE SimpliVity for edge deployments—HPE offers a full-stack, integrated solution with compute, storage, networking, and management. This architecture improves lifecycle management, enhances flexibility, and allows organizations to choose their preferred hypervisor, including HPE’s own VM Essentials. HPE claims this setup can reduce licensing costs by up to 90% and deliver a 2.5x lower total cost of ownership through disaggregated scaling, built-in automation, and reduced operational overhead.
At the edge, customers can achieve up to 45% savings, thanks to low-footprint deployments, centralized management, and simplified security features like micro-segmentation—now handled at the switch level via HPE Aruba. “We are delivering consistent cloud consumption experiences from the data center to the edge,” Bhardwaj emphasized. HPE is further reinforcing its value by offering full-stack support services, expanded ISV and hardware compatibility (including Dell, NetApp, and Commvault), and introducing a network-based microsegmentation feature built in collaboration with HPE Aruba, ensuring security without taxing the hypervisor.
Ecosystem Expansion and Enterprise-Grade Support
Recognizing the need for heterogeneity, HPE is expanding support across major hardware vendors (including Dell and NetApp), operating systems (Linux, Windows), databases (Oracle, SQL, MongoDB), and backup platforms like Commvault. Additionally, HPE is enabling deep network-level security with micro-segmentation and VPN support via HPE Aruba switches.
To support customers adopting this complex full-stack architecture, HPE is offering end-to-end support—including L1 to L3 services—and is investing in professional services, automation tooling, workload cost analysis, and migration playbooks. These services are designed not just for customers, but also to empower partners to facilitate the transition to next-gen private cloud platforms.
Enhanced SLAs and Guarantees for Electra Storage MP Architecture
HPE is also reshaping storage infrastructure through a disaggregated architecture built on HPE Alletra Storage MP and delivered through the GreenLake Cloud Platform. “We’ve embarked on this journey to simplify storage through a common hardware platform and operating model,” highlighted
Sanjay Jagad, VP of Structured Data for HPE Storage. This architecture enables deployment of multiple storage personas—such as file and object—while reducing overprovisioning, boosting utilization, and cutting energy consumption by 45%. According to Jagad, customers have seen up to 40% cost savings, driven by the ability to scale granularly and consolidate infrastructure. He emphasized that storage purchasing decisions are no longer based purely on cost-per-gigabyte, but are instead guided by “outcome-based criteria” that support sustainability, scalability, and operational efficiency.
To meet these evolving expectations, HPE is expanding its portfolio of service-level agreements and guarantees.
Zero Data Loss and Downtime Guarantee, enabled by high-availability and synchronous replication (active peer persistence).Cyber Resiliency Guarantee, which ensures recoverable immutable snapshots and expert support within 30 minutes of a ransomware incident.Energy Consumption Guarantee, which ensures systems stay within defined power thresholds to support energy efficiency. HPE Expands Data Protection Portfolio with Focus on Cyber Resilience
Cyber resilience continues to be a top priority for enterprises, and HPE is responding with an edge-to-cloud data protection strategy built to handle increasing complexity. “Data protection challenges are only increasing,” said
Stephen Bacon, Vice President of Data Protection at HPE, pointing to threats from “external and internal bad actors” as well as the rise of SaaS, cloud-native apps, and AI workloads.
HPE’s portfolio is designed to protect “any workload, no matter its type, size, or maturity” and meet varying service level demands. Bacon outlined four key focus areas: proactive protection, automation to reduce human error, mitigation of infrastructure failure, and performance that aligns with business needs. Customers are seeing tangible outcomes, including “six-second recovery point objectives,” “less than 10 minutes to recover from a ransomware event,” and “96% capacity savings.”
To future-proof enterprise investments, HPE is making new commitments around cyber resiliency, including zero data loss and downtime guarantees. “We want to help you protect your most valuable asset—data,” said Sanjay Jagad, VP of Structured Data for HPE Storage. He highlighted features such as anomaly detection, AI-driven issue resolution, and access to expert support “within 30 minutes” of a ransomware event. HPE also aims to reduce operational hours by 40% and resolve issues “10 times faster.” One customer using HPE’s Private Cloud Business Edition and integrated backup reportedly cut its data center footprint by 50%, reduced support costs by 66%, and achieved “data reduction of 5:1.” “This is all about ensuring we are delivering operational assurance that’s measurable, enforceable, and built into the architecture,” Jagad said.
HPE is also introducing new StoreOnce 3720 and 3760 backup appliances for branch offices and SMBs. The systems start at 18TB and scale up to 648TB with cloud integration, offering a “67% denser form factor” and “29% more power efficiency.” Bacon noted they retain core features such as “20:1 typical data reduction, encryption, immutability, and fast backup speeds of up to 25TB per hour”—all designed for smooth integration with leading backup software. “No matter what the challenge,” he said, “we’re able to enable our customers to tackle those challenges head-on.”
HPE’s Virtualization and SLA Model Opens New Opportunities for MSPs
HPE’s expanded virtualization ecosystem, anchored by the Morpheus Enterprise Software, is designed to empower managed service providers (MSPs) and cloud service providers (CSPs) with the tools and flexibility to build differentiated, outcome-driven services. “Morpheus Enterprise Management Software has inbuilt capabilities for enabling our service providers to deliver their value-added managed services on top,” said Bhardwaj, highlighting its suitability for multi-tenant environments. Through self-service provisioning, role-based access controls, and integrated compute, storage, and networking virtualization, MSPs can efficiently configure and deliver services across any infrastructure.
Most importantly, the platform’s open, extensible architecture allows MSPs to incorporate their own tools and services. “They can bring their value-added services, they can bring their customized services, integrate them with Morpheus software, and deliver them as a service provider in the market,” Bhardwaj added.
Coupled with HPE’s outcome-based SLAs—covering performance, uptime, and cost predictability—this creates a compelling foundation for service providers. As Jagad noted, “What do service providers really care about? They want to basically build their models around infrastructure solutions that allow them to deliver quality and predictable experiences.” With assurance baked into the offering, HPE is seeing growing interest from MSPs seeking to scale with confidence.
