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HP and Foxconn build servers for cloud and hyperscale computing

Archana Venkatraman

IT services and cloud provider HP and IT manufacturer Foxconn have entered into a joint venture agreement to produce a new line of servers designed to suit the cloud-based IT delivery model.

The move is seen as HP’s effort to grab the share of the growing cloud server business market and to cater to the increasing demands of high-density servers for hyperscale computing.

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The server line – when combined with HP’s existing ProLiant server portfolio, including Moonshot – will address compute requirements of large service providers by providing low total cost of ownership (TCO), scale, and service and support, according to HP.

The “cloud-optimised and high-density servers” come at a time when research firms such as IDC predict IT service providers will seek more performance gains and cost reductions as they expand cloud architecture implementations.

It also predicted that the hosting-as-a-service model will continue to transition away from traditional models towards cloud-based delivery mechanisms such as infrastructure as a service, spurring hyperscale growth in servers used for hosting (15 to 20% growth between 2013 and 2018).

The changing needs of cloud computing require a new approach to server design that can bring together cloud expertise, quick response and volume manufacturing, according to HP.

“With the relentless demands for compute capabilities, customers and partners are rapidly moving to a new style of IT that requires focused, scalable and high-volume system designs,” said Meg Whitman, president and chief executive officer of HP.

The collaboration with Foxconn will help them “deliver a game-changing offering in infrastructure economics”, Whitman added.

“Cloud computing is radically changing the entire supply chain for the server market as customers place new demands on the breadth of design capability, value-oriented solutions and large-scale and global manufacturing capabilities,” said Terry Gou, founder and chairman of Foxconn. 

“In partnership with HP’s server leadership, we are embracing this opportunity to change the industry, capture growth in this emerging market, and deliver end-to-end value as we expand our global leadership in design and manufacturing.”

The joint venture, in the form of a strategic commercial agreement, has taken effect from 1 May but the details of the pricing and availability of the new servers have not yet been announced.


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