Fiscal Year 24-25 HPE Market Outlook: What You Need to Know

Each year the HPE Replacement Parts Business holds their annual distributor summit for the Americas region. This year the event was held in sunny Cabo San Lucas, Mexico. Sun and surf aside, the partner summit’s purpose is to share valuable insight into HPE’s supply chain, market issues and product lifecycle roadmaps for their Tier 1 distributors.

 

The Replacement Parts program and their authorized distributors support the HPE channel by providing parts, options, and accessories for current and end-of-life HPE server, storage, and networking products. This allows HPE partners and their end-customers to maintain existing infrastructure and extend product life expectancy without having to go through unnecessary refresh cycles typically instigated by manufacturer end-of-life announcements.

 

Fiscal Year 24-25 HPE Market Outlook: What You Need to Know

HPE capacity planners are forecasting supply chain constraints to continue through FY24 and into 2025 as OEM suppliers reduce production and capacity due to weakening global demand for raw materials. As a result, extended lead times on commodity products such as memory, SSDs, and hard drives are expected to continue while experiencing incremental price increases of as much as 50% throughout FY24.

 

The 10th generation (Gen10/Gen10+) ProLiant server will continue well into FY25. This will be the longest generation ProLiant server in HPE history due largely to the COVID shutdown and the inevitable backlog it created in the global supply chain. Product shortages on Gen10/Gen10+ are not expected to negatively impact the market until spring of 2025 once the product family finally goes end-of-life.
 

HPE Market Summary

• Lead times of 8-12 weeks on HPE commodity products will continue due to weakening global demand.
• Price increases of 50% on all commodity products memory, SSD, hard drives and controllers will occur throughout 2024 and into 2025.
• Gen10/Gen10+ will continue to be available through HPE’s FY2024 with official end-of-life announcements expected sometime mid FY2025.
• SSD’s will stabilize with longer product lifecycles as the solid-state market continue to mature and customers globally adopt standards.

 

If you’re interested in learning more, need some help or just have a few questions about the HPE Replacement Parts program, pleased don’t hesitate to contact our team of experts at hpe@v3distribution.com