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Displaying articles for: March 2011

Léo Apotheker on servers in the age of the cloud: thoughts from the OnDemand conference

HP CEO Léo Apotheker HP Summit 2011

 

Earlier this week, veteran Silicon Valley media entrepreneur Tony Perkins took the stage to interview HP CEO Léo Apotheker at the OnDemand conference, hosted at HP headquarters in Palo Alto.  With over 70 venture-backed CEO’s in the audience, it was a typical Valley scene full of enthusiastic hallway conversations and bright ideas.


After recounting Léo’s career path prior to HP, Perkins focused on the company’s recently announced cloud computing strategy, asking if the market trend towards cloud computing threatens to “cannibalize” HP’s market-leading server business.


This line of thinking assumes that if more enterprise companies purchase IT as a service via the Internet, total demand for servers will stop growing. Servers were a ~$48 billion market in 2010.


Léo responded that for HP the important macro trend is overall demand for servers continues to grow.  Whether a server is in an enterprise client’s data center or the data center of a cloud service provider, it’s still a good market for HP.  “We’re just moving the revenue stream,” he said, adding that HP already counts seven of the world’s ten largest cloud service providers as customers.


What’s more, the proliferation of mobile devices is playing a complementary role.  The more people shift their IT consumption to cloud services accessed on mobile devices, “the more servers you need,” he said.


These very market dynamics were addressed head-on during HP’s March 14 strategy summit, where Léo and his senior leadership team publicly explained how HP’s core businesses provide the foundation to lead the two biggest technology trends of our time: cloud and connectivity.


By combining that core business foundation, the HP CloudSystem already shipping, a new suite of technologies delivered as a service, and connected mobile devices running webOS, HP’s portfolio would encompass the complete scope of what HP Chief Strategy & Technology Officer Shane Robison called the “cloud stack” – an integrated technology architecture for supporting today’s explosion of data and connectivity.


For more on HP’s Strategy Summit, watch Léo’s keynote here or the full event replay here.


For related HP Labs research on exascale datacenter architecture, read “HP nanotechnology research looks to sustain HP server market leadership for the long run.”

Cloud - HP Summit 2011

HP Labs researchers explore ways to unlock insights about home energy use

What simple changes could you make to reduce the energy you use in your home? Are your efforts to turn off the lights when you leave a room making a dent in your electricity bill and carbon footprint? Would it truly be “greener” to replace that old dishwasher with a more efficient model or to do your dishes by hand?

 

At today’s Unlocking Your Energy event in San Francisco, Chandrakant Patel, HP Senior Fellow and director of HP Labs’ Sustainable Ecosystems Research Group, will discuss a pilot research project underway that could one day make it easier to answer these questions.

 

Researchers in HP Labs have designed and deployed a proof of concept for a Home Energy Intelligence Service for remote monitoring and assessment of residential energy consumption patterns. The system combines a simple user interface with cutting-edge data mining and analytics to help identify patterns and provide insights on where energy consumption is taking place and what homeowners can do in response.

 

At the Service Research and Innovation Institute (SRII) Global Conference 2011 this week, the researchers will present a paper describing the project, the challenges they are tackling (like finding ways to use fewer sensors for highly accurate monitoring, and to pull info about different resources like water, gas and electricity into one view), and what they’ve learned from testing out this system in Bay Area homes over the past year.

 

The team’s goal is to turn the discovery of a home’s current usage patterns into a compelling experience that leads to energy savings with an aggressive payback for the investment.

 

You can read more news from the Unlocking Your Energy event here and check out a demo of the home energy management service below.

 

Data Central Exclusive: Rob Enderle analyzes HP’s cloud strategy

 

Following CEO Léo Apotheker’s keynote at last Monday's strategy summit, HP execs Shane Robison and Dave Donatelli gave a more detailed look into the $143 billion* cloud computing market, HP’s plan of attack, and some of the solutions HP already has in place.

 

Of course, you can always watch a replay of Shane and Dave’s presentation here (it begins 1 hour, 22 minutes, and 30 seconds into the program) and review their slides.  But we thought it’d be helpful to add an expert’s take to the conversation, so we asked Rob Enderle (principal analyst with Enderle Group) to share his thoughts on HP’s strategy.

 

As usual, Rob had a both educational and insightful point of view.  His point about how servers, storage, and networking must converge to meet the design requirements of the cloud deserves particular notice (as does his surprising analogy to HP’s successful strategy to dominate the imaging and printing market).

 

Take a moment to read Rob’s analysis below -- published in full -- and let us know any thoughts or counterpoints in the comments or on Twitter (you can find Rob on Twitter @enderle and HP @hpnews). 

 

For more on the HP Summit, check out last week’s post.

 

Rob Enderle, Enderle Group

The biggest and fastest growing opportunity for technology companies is in the concept of flexibly hosting services on the internet.  This concept -- which embraces everything from the web side of iTunes and YouTube (for consumers) to email and storage repositories (for businesses) -- is called “the cloud.”


HP is applying the same strategy that allowed them to dominate the printer market to this data center/cloud opportunity.  That strategy is based on a focused attack by the entire company on the singular idea of a simple, flexible, affordable solution that was easy to use, easy to implement and competitively superior to the alternatives.

 

To accomplish this they had to acquire networking, strengthen software, and bring the server and storage groups onto the same team so that the solution could meet the design requirements.   These efforts are particularly attractive to enterprise companies, which represent the largest class, because of the massive opportunities for cost savings and the huge potential to simplify what currently is an excessively complex data center environment.

 

While this is still a work in progress, HP is further down this integration path than any other vendor in their class.   

 

Notes:

*2013 expected market estimate, HP internal analysis

HP Names Tracy Keogh Executive Vice President of Human Resources

HP today announced it has appointed Tracy Keogh to serve as executive vice president of human resources, effective April 25.


Keogh will report to HP President and Chief Executive Officer Léo Apotheker and lead the key global human resources initiatives and people strategies needed to deliver the most value to the company’s more than 320,000 employees worldwide.


Keogh succeeds Marcela Perez de Alonso, who is retiring from HP.  To learn more about Tracy and read CEO Léo Apotheker’s comments on the appointment, read the full announcement.

HP comment on Oracle support for Itanium Processors

In response to Oracle’s March 22 press release, “Oracle Stops All Software Development For Intel Itanium Processor,” HP today issued the following statement by David Donatelli, HP Executive Vice President and General Manager, HP Enterprise Servers

 

"We are shocked that Oracle would put enterprises and governments at risk while costing them hundreds of millions of dollars in lost productivity." 

 

UPDATE 11:55am PT

HP just issued a more in-depth press release on this issue today, "HP Supports Customers Despite Oracle's Anti-customer Actions".  In it, Donatelli expanded his statement to add, "Oracle continues to show a pattern of anti-customer behavior as they move to shore up their failing Sun server business.  HP believes in fair and honest competition. Competition is good for customers, innovation and the marketplace."

 

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; the competitive pressures faced by HP’s businesses; the development and transition of new products and services (and the enhancement of existing products and services) to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2011 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010. HP assumes no obligation and does not intend to update these forward-looking statements.

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