Category Archives: HP

Public cloud generating $22 billion a quarter for IT Companies

metalcloud_lowresPublic cloud computing generated over $22 billion in revenues for IT companies in the second financial quarter of 2015, according to a study by Synergy Research Group.

The revenue breaks down into $10 billion earned by companies supplying public cloud operators with hardware, software and data centre facilities and $12 billion being generated from selling infrastructure, platforms and software as a service.

In addition the public cloud supports ‘huge’ revenue streams from a variety of internet services such as search, social networking, email and e-commerce platforms, says the report. It identifies the supply side companies with the biggest share of revenues as Cisco, HP, Dell, IBM and Equinix. On the cloud services side the market leaders are AWS, Microsoft, Salesforce, Google and IBM.

As the public cloud makes inroads into the total IT market, the hardware and software used to build public clouds now account for 24 per cent of all data centre infrastructure spending. Public cloud operators and associated digital content companies account for 47 per cent of the data centre colocation market.

While the total IT market grew at less than five per cent per year, the growth of cloud revenues outpaced it. Infrastructure and platform as a service revenues (Iaas/Paas) grew by 49 per cent in the past year and software as a service (SaaS) grew by 29 per cent.

“Public cloud is now a market that is characterized by big numbers, high growth rates and a relatively small number of global IT players,” said Synergy Research Group’s chief analyst Jeremy Duke.

However, the report noted that there is still a place for regional small-medium sized public cloud players.

Hewlett-Packard to decimate its workforce as major split announced

HPHewlett-Packard is to cut 10 per cent of its workforce, which could mean up to 30,000 redundancies, as plans to divide the company in two unfold.

The losses will come when Hewlett Packard Enterprise (HPE) splits from the printer and PC business. The jobs cull will cost $2.7bn to carry out but will save the same amount in running costs every year, says HP.

The new structure proposed by chief executive Meg Whitman would steer HP Enterprise’s focus onto enterprises and government agencies while the PC and printing divisions would concentrate primarily on the consumer market.

Details have not been released about where the job cuts will be made, but Whitman told Wall Street analysts that the plan involves changing the nature of the workforce. The proportion of workers in what HPE calls ‘low-cost locations’ is expected to rise from today’s figure of around 42 per cent to to 60 per cent by 2018.

“We’ve done a significant amount of work over the past few years to take costs out and simplify processes,” Meg Whitman told a meeting of shareholders and Wall Street analysts, “these final actions will eliminate the need for any future corporate restructuring.”

Since the height of the dot com boom in 2000 Hewlett Packard’s stock has lost 60 per cent of its value. However, Hewlett-Packard remains one of the world’s largest technology companies, with revenues this year expected to top $50bn.

Earlier this year HP cut 55,000 jobs. These will not be the last of the job cuts, predicted Charles King, analyst at the Silicon Valley IT consulting firm Pund-IT. “The number is sadly larger than some people might have expected, but I think it’s a reflection of how much trouble HP has been having with its services,” said King.

Ctera now integrated with HP’s hybrid cloud manager

Cloud storageCtera Networks says it has integrated its storage and data management systems with HP’s cloud service automation (HP CSA) as it seeks way to simplify the management of enterprise file services across hybrid clouds.

The HP CSA ‘architecture’ now officially recognises and includes Ctera’s Enterprise File Services platform. The logic of the collaboration is that as the HP service helps companies build private and hybrid clouds they will need tighter data management in order to deliver new services to enterprise users, according to the vendors.

Ctera, which specialises in remote site storage, data protection, file synchronisation, file sharing and mobile collaboration services, has moved to make it easier to get those services on HP’s systems. According to Ctera, the new services can now be run on any organization’s HP CSA managed private or virtual private cloud infrastructure.

Enterprises that embrace the cloud need to modernise their file services and IT delivery models, according to Jeff Denworth, Ctera’s marketing SVP. The new addition of Ctera to HP CSA means they can easily manage file services from a single control point and quickly roll out the apps using a self-service portal, Denworth said.

“HP CSA helps IT managers become organisational heroes by accelerating the deployment of private and hybrid clouds and IT services,” said Denworth. The partnership with HP will result in a ‘broad suite’ of file services, increased agility and cheaper hybrid cloud services, according to Denworth.

The partnership should make things simpler for cloud managers, who are being forced to take on several roles, according to Atul Garg, HP’s general manager of cloud automation. “Today’s IT teams are becoming cloud services brokers, managing various products and services across hybrid environments and fundamentally changing how they deliver value to the broader organisation,” said Garg. Now file services can be deployed easily to tens of thousands of users, said Garg.

HP overtakes Cisco in cloud infrastructure equipment leadership battle

ServersHP is now the top selling supplier to the cloud infrastructure equipment market, having sat on the shoulder of market leader Cisco throughout 2013 and 2014, according to a study by the Synergy Research Group.

The research group’s sales figures for the two vendors showed them to be tied in the first quarter of 2015, but by Q2 HP had opened a lead after achieving much stronger sequential revenue growth. The two leading vendors are both achieving ‘stellar revenue growth’ in the burgeoning market, according to Synergy. However, while HP maintained a 13 per cent worldwide market share in Q2, Cisco’s share dropped by half a percentage point. The two front runners are followed by Microsoft, Dell, IBM, EMC, VMware, Lenovo and Oracle.

In the public cloud infrastructure equipment market Cisco still has a ‘commanding lead’, but HP has a clear lead in private cloud. Total cloud infrastructure equipment revenues, including hardware and software, are now running at $16 billion per quarter, having grown 25 per cent year on year.

HP leads the cloud infrastructure competition because of its dominance in the cloud server sector and its strong contention in storage, according to Synergy. Cisco’s challenge is upheld by its domination of networking, with support from its rapid ascension in the server market. Microsoft owes its high ranking to the success of its server operating system and virtualization applications. In the chasing pack, Dell and IBM both maintain strong positions with a respectable presence in a range of cloud technology markets.

Servers, operating systems, storage and networking combined account for 89 per cent of the cloud infrastructure market, according to Synergy’s figures. The balance of the market revenues are made from cloud security, cloud management and virtualization applications.

“The public cloud services market is clearly booming and driving heavy investment in cloud infrastructure, while a rapid transition to cloud is also in full swing in the enterprise IT market,” said Jeremy Duke, Synergy Research Group’s founder and chief analyst. “The good news for all vendors is that this huge market is growing rapidly and in aggregate the two leaders only account for a quarter of it – much the same as they did a year ago.”

Yesterday cloud service provider Ormuco, an HP Helion Network charter member, appointed Norwich based MigSolv as its UK data centre partner, adding another HP installation to the cloud infrastructure.

HP suffers across the board as Enterprise Group flatlines

HP had a tough Q3 2015

HP had a tough Q3 2015

HP reported heavy losses when it revealed its third quarter 2015 financial results this week, with the enterprise IT giant raking in net revenues of $25.3bn, down 8 per cent year on year.

PC revenues were down 13 per cent year on year, printing revenue down 9 per cent and software down 6 per cent. In cloud, it’s as-a-service business was down 4 per cent.

The company’s enterprise services group also took a big tumble, with revenues dropping 11 per cent, infrastructure technology outsourcing declining 11 per cent, and application and business services revenues dropping 7 per cent.

The results were well below analyst expectations.

“HP delivered results in the third quarter that reflect very strong performance in our Enterprise Group and substantial progress in turning around Enterprise Services,” said Meg Whitman, chairman, president and chief executive officer, HP. “I am very pleased that we have continued to deliver the results we said we would, while remaining on track to execute one of the largest and most complex separations ever undertaken.”

In a call with analysts this week Whitman tried to allay any fears of its stated strategic direction – the company is on track to split up later this year – and said it saw growth in key pockets of SaaS solutions, but that this growth was offset by weaker big data and IT management revenues.

“We remained focused on aligning our portfolio to the Hewlett-Packard Enterprise strategy and driving software-led integrated solutions across EG and ES while addressing the challenges around the market shift to SaaS and internal execution challenges,” she said.

“We’ve also refined our go-to-market over a longer period of time. And part of the challenge we had prior to me was the fact that we changed our go-to-market so many times. Every CEO had a different idea about how to go to market. We just locked on one and we’re driving it.”

“There might be things we can do to optimize, but we’ve got a strategy and we’re driving it. And I think that’s given the sales force and customers a lot of confidence. And we’ve all been out with a lot of customers. The first couple years was more internally focused. We’ve been out with customers. I would say our customer and partner confidence is at an all-time high. And the backlog, by the way, going into fourth quarter is the highest backlog I’ve had since I’ve been at the company. So all signs are good, but we remain on constant alert,” she added.

Quanta intros Intel RSA Open Compute proof of concept

Quanta is mashing up Intel's RSA and Open Compute designs

Quanta is mashing up Intel’s RSA and Open Compute designs

Taiwanese datacentre vendor Quanta has introduced an Intel Rack Scale Architecture (Intel RSA) proof of concept rack solution based on Open Compute specifications which the company is pitching at hyperscale datacentre operators and cloud providers.

Intel RSA is the chip vendor’s own modular architecture design that disaggregates compute, storage and networking and weaves them together in a fabric it claims makes resources easier to pool and pod.

Now Quanta has developed a proof of concept for a server that blends Intel’s RSA specs and Open Compute designs.

The hardware vendor, which already offers hardware based on Open Compute designs, claims will significantly reduce datacentre energy consumption and costs, reduce vendor lock-in and ease management and maintenance.

“Datacentres face significant challenges to efficiency, flexibility and agility,” said Mike Yang, general manager of QCT. “Working with Intel on the Intel RSA program, we have developed our product lineup based on Open Compute to give customers the utmost in efficiency and performance, supported by open standards.”

“In addition, we provide manageability from the chassis level and rack level, up to pod level, so customers can easily pool resources across these levels to support dynamic workloads,” Yang said.

ODMs like Quanta have gained strong share in the hyperscale datacentre space because of their cost competitiveness, and at the same time the Open Compute project, an open source hardware project founded by Facebook a few years back, seems to be gaining favour among large cloud providers. Facebook, IBM, HP and Rackspace are among some of the larger providers building out Open Compute-based services at reasonable scale.

HP to buy Stackato to boost hybrid cloud strategy

HP is buying Stackato to boost support for Linux containers

HP is buying Stackato to boost support for Linux containers

HP is to acquire ActiveState’s Stackato business for an undisclosed sum, which the company said would give a boost to its hybrid cloud strategy.

Like HP Helion Development Platform, Stackato’s platform as a service is built on Cloud Foundry and offers robust support for Docker, which is gaining the lion’s share of attention in the Linux container world. It offers deployments on a range of cloud infrastructure including AWS, VMware, OpenStack, HP Cloud and KVM.

HP said the move would strengthen its hybrid cloud strategy, which largely puts application catalogues, workload automation, Cloud Foundry and OpenStack front and centre.

“The Stackato PaaS solution strengthens the HP Helion portfolio and reinforces HP’s commitment to delivering customers open source solutions that help accelerate their transition to hybrid clouds,” said Bill Hilf, Senior Vice President, product and service management, HP Cloud. “The acquisition reinforces HP’s focus on driving Cloud Foundry as the open standard cloud native application platform.”

After the acquisition closes, which is expected to occur sometime in Q4 this year, HP will integrate Stackato into the Helion Development Platform.

The strong support for Linux containers will help HP build on its hybrid cloud strategy. Containers are useful in part because they are extremely portable and can run on pretty much any infrastructure, a useful feature when it comes to lifting and shifting workloads and application components in heterogeneous infrastructure environments. In an interview with BCN earlier this month Xavier Poisson, vice president of HP Helion in EMEA said Linux containers are increasingly at the core of cloud-native app development – so anything that can boost the company’s support of containers could make it more competitive.

HP inks deal with SunEdison to power its cloud with clean energy

HP is the latest cloud player to boost its green credentials

HP is the latest cloud player to boost its green credentials

HP signed a 12-year power purchasing agreement with SunEdison this week that will see it power its cloud datacentres with renewable energy.

The deal will see SunEdison begin construction on a massive wind farm in Texas, which when completed will generate 300 MW of power. The wind farm will be acquired by TerraForm, a global owner and operator of renewable energy plants, in 2016 once it becomes operational.

HP said the 12 MW of wind electricity it agreed to purchase annually is enough to power all of its Texas-based datacentre operations, and will enable the company to reach its 2020 operational greenhouse gas (GHG) emissions reduction goal by the end of this year, five years ahead of schedule.

“This agreement represents the latest step we are taking on HP’s journey to reduce our carbon footprint across our entire value chain, while creating a stronger, more resilient company and a sustainable world,” said Gabi Zedlmayer, vice president and chief progress officer, Corporate Affairs, HP.

“It’s an important milestone in driving HP Living Progress as we work to create a better future for everyone through our actions and innovations,” Zedlmayer said.

Paul Gaynor, executive vice president, Americas and EMEA, SunEdison said: “By powering their data centers with renewable energy, HP is taking an important step toward a clean energy future while lowering their operating costs. At the same time, HP’s commitment allows us to build this project which creates valuable local jobs and ensures Texan electricity customers get cost-effective energy.”

HP is the latest cloud player to bolster its green credentials. Amazon recently announced two clean energy projects in the US within a month of one another, one in Virginia and the other in North Carolina.

Hybrid cloud issues are cultural first, technical second – Ovum

CIOs are still struggling with their hybrid cloud strategies

CIOs are still struggling with their hybrid cloud strategies

This week has seen a number of hybrid cloud deals which would suggest the industry is making significant progress delivering the platforms, services and tools necessary to make hybrid cloud practical. But if anything they also serve as a reminder that IT will forever be multimodal which creates challenges that begin with people, not technology, explains Ovum’s principle analyst of infrastructure solutions Roy Illsley.

There has been no shortage of hybrid cloud deals this week.

Rackspace and Microsoft announced a deal that would see the hosting and cloud provider expand its Fanatical Support to Microsoft Azure-based hybrid cloud platforms.

Google both announced it would support Windows technologies on its cloud platform, and that it would formally sponsor the OpenStack foundation – a move aimed at supporting container portability between multiple cloud platforms.

HP announced it would expand its cloud partner programme to include CenturyLink, which runs much of its cloud platform on HP technology, in a move aimed at bolstering HP’s hybrid cloud business and CenturyLink’s customer reach.

But one of the more interesting hybrid cloud stories this week came from the enterprise side of the industry. Copper and gold producer Freeport-McMoRan announced it is embarking on a massive overhaul of its IT systems. In a bid to become more agile the firm said it would deploy its entire application estate on a combination of private and public cloud platforms – though, and somewhat ironically, the company said the entire project would wrap up in five years (which, being pragmatic about IT overhauls, could mean far later).

“The biggest challenge with hybrid cloud isn’t the technology per se – okay, so you need to be able to have one version of the truth, one place where you can manage most the platforms and applications, one place where to the best of your abilities you can orchestrate resources, and so forth,” Illsley explains.

Of course you need all of those things, he says. There will be some systems that won’t fit into that technology model, that will likely be left out (i.e. mainframes). But there are tools out there to fit current hybrid use cases.

“When most organisations ‘do’ hybrid cloud, they tend to choose where their workloads will sit depending on their performance needs, scaling needs, cost and application architecture – and then the workloads sit there, with very little live migration of VMs or containers. Managing them while they sit there isn’t the major pain point. It’s about the business processes; it’s the organisational and cultural shifts in the IT department that are required in order to manage IT in a multimodal world.”

“What’s happening in hybrid cloud isn’t terribly different from what’s happening with DevOps. You have developers and you have operations, and sandwiching them together in one unit doesn’t change the fact that they look at the world – and the day-to-day issues they need to manage or solve – in their own developer or operations-centric ways. In effect they’re still siloed.”

The way IT is financed can also create headaches for CIOs intent on delivering a hybrid cloud strategy. Typically IT is funded in an ‘everyone pitches into the pot’ sort of way, but one of the things that led to the rise of cloud in the first place is line of businesses allocating their own budgets and going out to procure their own services.

“This can cause both a systems challenge – shadow IT and the security, visibility and management issues that come with that – and a cultural challenge, one where LOB heads see little need to fund a central organisation that is deemed too slow or inflexible to respond to customer needs. So as a result, the central pot doesn’t grow.”

While vendors continue to ease hybrid cloud headaches on the technology front with resource and financial (i.e. chargeback) management tools, app stores or catalogues, and standardised platforms that bridge the on-prem and public cloud divide, it’s less likely the cultural challenges associated with hybrid cloud will find any straightforward solutions in the short term.

“It will be like this for the next ten or fifteen years at least. And the way CIOs work with the rest of the business as well as the IT department will define how successful that hybrid strategy will be, and if you don’t do this well then whatever technologies you put in place will be totally redundant,” Illsley says.

HP, CenturyLink buddy-up on hybrid cloud

CenturyLink and HP are partnering on hybrid cloud

CenturyLink and HP are partnering on hybrid cloud

HP and CenturyLink announced a deal this week that will see HP resell CenturyLink’s cloud services to its partners as part of the HP PartnerOne programme.

As part of the deal HP customers will have access to the full range of CenturyLink services, which are built using HP technology, including managed hosting, colocation, storage, big data and cloud.

“CenturyLink solutions, powered by HP, provide compelling value for organizations seeking hybrid IT solutions,” said James Parker, senior vice president, partner, financial and international, at CenturyLink. “CenturyLink complements the HP portfolio with a breadth of hybrid solutions for enterprises, offering customers the ability to choose the services that make the most sense today, while retaining the flexibility to evolve as business demands shift.”

HP said the move will help CenturyLink expand its reach new customers, with HP exploiting new opportunities to build hybrid cloud solutions for existing customers.

“As businesses map out a path to the cloud, they need flexibility in how they consume and leverage IT services,” said Eric Koach, vice president of sales, Enterprise Group, central region, HP.

“HP cloud, software and infrastructure solutions help CenturyLink and HP enable clients to build, manage and secure a cloud environment aligned with their strategy, across infrastructure, information and critical applications,” Koach said.

Since splitting up HP has bifurcated its partner programmes into the PartnerOne programme for service providers and the Helion PartnerOne programme, the latter of which largely includes services providers building solutions on top of OpenStack or Cloud Foundry.