Exclusive: HPE Guarantees Deal Quotes Below $1M Amid Rising Memory Prices

HPE has changed its contractual terms to guarantee price quotes on compute, storage and GreenLake Flex deals below $1 million in spite of rising memory prices and shipment delays plaguing the industry. HPE Executive Vice President and Chief Sales Officer Phil Mottram disclosed the move in an internal message to the HPE global sales team. The change aims to give customers and partners greater pricing certainty and eliminates a contract stipulation made in February that allowed for price revisions and adjustments until the date of shipment. HPE Senior Vice President of Worldwide Channel and Partner Ecosystem Simon Ewington said: For compute, storage and GreenLake Flex deals below $1 million net, which is the majority of transactions, the price that we quote is the price customers will pay—no pricing adjustments between order and shipment. The change comes even in the midst of rising memory prices that have some HPE competitors changing prices—sometimes as much as doubling initial partner price quotes—upon shipment. HPE partners said that price stability and predictability is at an all-time low and praised HPE for restoring price certainty on deals under $1 million. The IT industry has been grappling with rising memory prices, shortages and shipment delays since the end of last year. Top vendors, including HPE, shortened price-quote validity windows for channel partners to 14 days and added restrictive language into partner terms. HPE's move extends price quote validity from 14 days to 30 days for servers, storage and GreenLake Flex, and now guarantees no repricing for deals under $1 million.