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HP Networking steps up competition, announces FlexNetwork architecture and new products

On Monday, ahead of today’s Interop conference, HP’s Dave Donatelli and Marius Haas announced a new network architecture and switching products aimed at continuing the growth of HP’s networking business.


During an hour-long presentation to press, Haas and Donatelli drove home a message of simplicity, high-performance, and a reduced total cost of ownership – foreign concepts in the networking market until recently.


For example, the company introduced one new management application (the Intelligent Management Center) that does the work of 30 different Cisco management tools.


According to Haas, the proof that HP is delivering on its message is in the numbers.


HP estimates show that HP Networking gained 2.3% of switch revenue share in 2009 and 2010, while Cisco lost 3.8% (see slide 16 in Marius’s presentation for more detail).


In an interview with Bloomberg BusinessWeek, Donatelli was more direct: “Cisco has a business model problem – they’ve been overcharging.”


No matter how you slice it, HP’s networking business has been firing on all cylinders, so it’s not surprising that CEO Léo Apotheker calls it an “exciting market,” given the size of the opportunity – Gartner reportedly estimates the switching market at $21 billion annually.


You can watch a replay of Haas and Donatelli’s remarks here.



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