HP tackles $35bn converged IT market


HP tackles $35bn converged IT market

Ian Grant

Hewlett-Packard is to launch a set of products and services, which it claims will help firms achieve better insight into their business, faster application development and greater flexibility in responding to market changes.

The announcement is the first indication of how HP plans to exploit its $13.9bn acquisition of IT services firm Electronic Data Systems (EDS).

It comes in response to recent product announcements from competitors Cisco and IBM aimed at enterprise customers.

HP has released an updated version of its Neoview Advantage real-time data warehouse and business intelligence platform. "The comparable competitor is Teradata," said Iain Stephen, director of enterprise servers and storage for HP UK and Ireland.

Based on fault-tolerant hardware, Neoview can support thousands of parallel input streams, Stephen said. The latest version is based on HP blade servers, cutting its physical footprint and running costs between 30% and 40% and boosting throughput by up to 40%, he said.

Stephen said HP is offering two ideas to increase firms' "elasticity" or responsiveness to change.

One is the HP Converged Infrastructure architecture, which offers firms better integration and management of server, storage and network assets in virtualised environments, either on an in-house or outsourced basis.

The other is a cloud computing offering, a legacy of the EDS takeover. This allows firms to add processing and storage capacity on an ad hoc basis, and to integrate applications and data from the cloud transparently with in-house systems through an over-arching information management system, Stephen said.

As examples, HP Enterprise Services  recently signed multi-year agreements with automaker Nissan North America , Sony Ericsson Mobile Communications , and Telstra, the Australian telecommunications company.


Investing in innovation 

Researchers for HP found that only 34% of global enterprise IT budgets is dedicated to business innovation.

"IT sprawl has created technology silos in datacentres so that maintenance and operations consume up to two-thirds of the technology budget," said HP's Stephen.

Solving the issue of IT sprawl with converged infrastructure solutions is expected to create a $35bn market opportunity by 2012, he said.


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