Tag: HP

HP split set for November 1

Whitman's-SamplerThe maker of expensive printer ink, HP will be splitting itself in two on November 1.

HP queen bee, Meg Whitman said that everything will be good to go for the separation of HP and Hewlett-Packard Enterprise would be effective on November 1.

Whitman made the announcement during the company’s technology event, HP Discover 2015, in Las Vegas.

The world’s No. 2 personal computer maker wants to split into two listed companies, separating its computer and printer businesses from its faster-growing corporate hardware and services operations.

Whitman believes that breaking HP into two companies, with about $57 billion in annual revenue each, will create two more nimble outfits which can respond to the constantly shifting technology marketplace.

Whitman will be left in charge of Hewlett-Packard Enterprise, which will include the $27 billion division that sells industrial-grade computing and networking gear and the $23 billion Enterprise Services business, which runs the tech and IT operations for other companies under contract.

Her slimmed-down company will walk away from the separation with the majority of the parent’s cash — about $13.3 billion — which will allow it to quickly pivot into deal-making mode. It’ll also allow both new companies to re-engage with Silicon Valley and the wider tech industry, she claims.

Data centre evolves from snooze to news warns Gartner

darwinBeancounters at Gartner said that thedData centre industry is about to see some rapid change after 15 years of more or less being a snooze.

In its 2015 Magic Quadrant for Data Center Networking report Big G said that emerging innovations like software-defined networking (SDN) and disaggregation switching, and  data centre networking was shaking up the industry.

Unlike in the past, vendor differentiation is shifting toward software — including management, automation and orchestration — compared with hardware.

Gartner Research Director Andrew Lerner, who co-wrote the report said most of the suppliers were the same names as they everywere.  But positions have have changed within the industry.  Arista Networks becoming a Leader and Dell is being more progressive.

The report found that the adoption of and interest in white-box switches over the past year have increased significantly within hyperscale data centres.

Dell twigged to the fact that a white-box or branded white-box was the key and  then Juniper followed, then HP.

There is now a demand for a denser, more highly virtualised data centre to improve agility within networks. Organizations want less proprietary, closed systems than have typically filled the space.

The market leader is still Cisco and has the largest  installed base of any vendor in the quadrant, Cisco is by far the global leader in port shipments and revenue.

Gartner’s report slams Cisco for overlapping, conflicting architectures as well as one of the priciest solutions on the market.

Cisco’s flagship Application Centric Infrastructure (ACI) is “less open” than some SDN products, said Lerner, but “if you’re looking for an open solution, they do have a broad portfolio.”

Arista is the fastest-growing vendor in the space and is one of only two companies – including Cisco – that Gartner refers to as Leaders.

Arista has taken a open and agnostic approach that’s cost-effective, so it’s a very compelling story for company’s the report said.”

HP is not doing that badly either. The No. 2 player in the market has a strong global reach, a broad portfolio and open SDN. HP was rated the most open vendor, according to Gartner research surveys.

What is keeping the computer giant from being a leader in the market is its failure to execute sales from a channel perspective.

“From a portfolio perspective, they can go toe-to-toe with anybody. … They have the HP brand and the global distribution channel, so on paper, they should be a fierce competitor,” said Lerner. “The reality is, we don’t see the HP distribution channel putting the HP data center networking portfolio in front of customers with the same degree of fervor as, say, a Cisco or even an Arista.”

Dell was the most innovative vendor in the marketplace over the past year, with more than 24,000 networking customers, jumping from a niche player in 2014 to a visionary this year.

Dell was the first mainstream vendor to support a disaggregation switching solution that allowed organizations to run third-party networking software on Dell hardware.

VMware was the only vendor that made the quadrant that doesn’t provide hardware in the data centre. The company’s flagship NSX SDN overlay product garners a high degree of interest and has a proven track record of reliability with customers.

VMware’s suffers from an immature channel and sales coverage  which is triggering its growth.

 

Computer Sciences Corp to break up

330Technology consulting services provider Computer Sciences is planning to separate its government business from its commercial information technology division.

Word on the street is that an announcement could come next week, when CSC releases its fiscal 2015 earnings on May 19.

CSC has been trying, without much luck, to sell itself. The company has a market capitalisation of close to $9.5 billion.

The company is  cost cutting like a mad thing as the US government cut back on its services. However, its government business is seen as attractive to potential buyers because of the high barriers to entry for competitors.

While CSC is still open to acquisitions, it now sees a split in which shareholders would also get stock in a new company as the most attractive and tax-efficient transaction to pursue.

Buyout interest had come from Cap Gemin, HP and Canadian consulting firm CGI as well as the usual sharks from private equity firms. However CSC wanted more money than they wanted to pay.

Hedge fund Jana Partners disclosed a 5.9 percent stake in CSC in February, and said it would continue talks with the company about strategic alternatives and the composition of its board.

 

HP gathers legal Lynch Mob

The lynch-mob-21war of words between HP and the former owner of Autonomy, Michael Lynch has ended up in a court battle in the UK.

The maker of expensive printer ink has lodged a claim in London against Lynch and a former colleague for damages of about $5.1 billion over their management of Autonomy, the company it bought in 2011.

Lynch will counter sue, seeking $149 million for loss and damage caused by HP’s accusations.
Autonomy was supposed to be the $11.1 billion centrepiece of a move to becoming a more SAP style software organisation. But a year later HP wrote off three-quarters of the British company’s value, accusing Lynch and his colleagues of financial mismanagement.

HP filed a claim against Lynch, the co-founder of Autonomy, and Autonomy’s former finance director Sushovan Hussain in the Chancery Division of London’s High Court on Monday, alleging they engaged in fraudulent activities while executives at Autonomy.

“The lawsuit seeks damages from them of approximately $5.1 billion,” the spokeswoman added.
Lynch, speaking on behalf of Autonomy’s former management, has consistently denied any impropriety, saying the loss in value of the company was down to HP’s mismanagement.

HP’s case might have been weakened by the fact that Britain’s Serious Fraud Office (SFO) said there was not enough evidence to secure a conviction of Autonomy’s former executives.

Former HP boss “90 percent sure” of presidential bid

carlyfiorinaFormer HP boss the winsome (and lose some) Carly Fiorina said the chances she would run for the US presidency in 2016 were “higher than 90 percent” and that she would announce her plans in late April to early May.

Fiorina said she could not yet announce the bid because she was working to establish her team and put together what she described as “the right support” and financial resources.

Fiorina was seen as a divisive figure at HP. Her wielding of the corporate axe made staff scared of losing their jobs. It is also not clear if HP ever did that well from her massive buy out of Compaq which left HP as the world’s largest hardware maker just in time for the economic rut which gutted PC sales.

In 2005, Fiorina was forced to resign as chief executive officer and chair of HP following “differences with the board of directors about how to execute HP’s strategy.”She has frequently been ranked as one of the worst tech CEOs of all time, although we would suspect that at least one of those who followed her into the HP chair were a lot more apocalyptic [surely Apothelkayptic. Ed].

Potential Republican presidential candidates including former Florida Governor Jeb Bush, Wisconsin Governor Scott Walker, Florida Senator Marco Rubio, former Arkansas Governor Mike Huckabee and New Jersey Governor Chris Christie.

Texas Senator Ted Cruz became the first major figure from either political party to formally announce his 2016 presidential bid.

Among Democrats, Hillary Clinton is expected to be the front-runner for the nomination, although she has yet to formally announce her plans.

 

HP goes Bang. And Olufsen

HPHewlett Packard has decided to strike a deal with Bang & Olufsen to bring its sound systems to its PCs, to its tablets, and to its accessories.

Under the deal, HP said it will custom tune every notebook, desktop and tablet it sells for “precise sound”. Bang & Olufsen kit won’t be in all of the machines it sells, however.

The company said it will create what it describes as a “dedicated audio island” which isolates the sound system from other signals on motherboards. The headphone jack also has a limited amount of metal parts to cut down ground noise.

HP will provide an audio control pane to let people either choose from optimised presets or manually tune the sound.

The first systems with the B&O tech will be available in spring on its Spectre, Omen, Envy and other PCs. The B&O Play brand will be incorporated into HP Pavilion PCs, tablets and some audio accessories.

Dell hits the high spot

Dell logoEven though terminal clients are in an inexorable decline, thin clients performed quite well in 2014, with growth up 4.6 percent compared to the year before.

And there may be brighter news ahead for thin clients, according to a report from market research company IDC – enterprises are expected to resume projects in 2015 that were delayed by the worldwide slump.

The biggest beneficiary of client devices was Dell, which in the fourth quarter of last year had a 27.2 percent share.

HP took second place, with 25.5 percent of the market, followed by Centerm (10.8%), Igel (5.2%) and NComputing (5.1%).

The total number of units shipped in the quarter amounted to 1,418,402 units, a decline of 12.5 percent from the same period in 2013 – and the decline was due to terminal clients being rather old hat.

Dell did well because it won some key sales in the financial sector, IDC said.

NComputing saw its position in the pecking order drop to the number five positionm for the quarter.

Back up kit worth over a billion

emcboxThe market for customised backup appliances reached $1 billion worldwide in the fourth quarter of last year.

This market represents standalone disk products that use software, disk arrays, server engines, and more specifically data coming from backup software.

IDC said that the market for this kind of kit rose by four percent in 2014 and generated revenues of $3.26 billion.

Annual capacity in 2014 rose by 42.8 percent compared to 2013 to a staggering 2.68 exabytes.

Liz Conner, a research manager at IDC, said reasons for the rise in revenues included better software, data tiering, file sharing, data analytics and more investment in integrated systems.

In the fourth quarter, top of the storage pile was EMC with 63.8 percent market share, dwarfing the other players Symantec (11.5%), IBM (6.7%), HP (4%) and Quantum (2.3%).

 

Apple buys into white box servers

novità-apple-2013Cupertino based Apple Inc has decided to ditch HP and Dell to supply its servers and instead is looking to Taiwanese firms to supply its data centre needs.

That’s according to Taiwan wire Digitimes which said some of the local white box server manufacturers have already received orders from Apple for boxes.

One of the major manufacturers of servers is Quanta, which used to specialise almost wholly in making notebooks for big vendors but has diversified its business over the last two years.

It offers servers at a price that undercuts Dell and HP and will customise the machines for customers which already include giants like Microsoft, Google, Facebook and Amazon.

Apple said recently it will open data centres in Ireland and in Denmark and it’s also spending billions on building up data centres in the USA.

The company is also cuddling up to IBM and wants to release tablet machines that will appeal to enterprises rather than the home users it has depended on in the past.

HP resolves Autonomy case with shareholders

INDUSTRY HP 1Maker of expensive printer ink HP has finally won court approval of its settlement with shareholders over its botched Autonomy deal.

US District Judge Charles Breyer in San Francisco granted preliminary approval to the accord Friday, saying that unlike the last proposal it doesn’t provide officers and directors with broad protection against possible lawsuits that have nothing to do with the Autonomy acquisition.

The settlement releases HP from investor claims related to Autonomy in exchange for a set of corporate governance reforms and no money damages.

Executives at HP and Autonomy have been spatting over who’s responsible for the $8.8 billion writedown related to the $10 billion 2011 takeover of the UK software company. HP blamed much of the writedown on inaccurate financial statements, said it was the victim of fraud by Autonomy’s managers. Former Autonomy executives say HP missed it all up.

They argued, HP should be forced to litigate the shareholder suit, because then it would have to reveal documents that the Autonomy bosses believe will exonerate them of any wrongdoing. That doesn’t seem likely to happen.

The governance reforms apply to both entities to be formed when HP splits into two companies.

The reforms include the creation of a senior executive-led risk management committee, modifications to board-level oversight of mergers and acquisitions and a new due diligence policy for mergers.

Notebook sales fell in February

notebooksA report said there were large falls in shipments of notebooks in January and February.

Digitise Research said that shipments for the five multinational brands and the top three manufacturers – original design manufacturers – fell by 13 percent and 18 percent in February.

One major reason, the analysts say is because there are high levels of stocks of models intended for home use left over from last year. Fluctuations in exchange rates also caused a decline in sale.

However, it appears that Hewlett Packard managed to buck the trend and in February its notebook shipments rose by 30 percent. It had managed to make adjustments to its overstock and also made significant sales of units for the educational market to India.

Lenovo fell behind HP in the top five, but it was Acer and Asustek which really took a hit, with falls in shipments of as much as 40 percent, Digitimes Research said.

The ODMs, who make notebooks to be rebranded by others, also saw their shipments fall during the period.

 

HP creates cloud server line

Every silver has a cloudy liningThe maker of expensive printer ink, HP said that it is creating a server family for cloud providers.

The project is being done as a joint venture with Foxconn, a partnership announced last year to create cloud-optimised servers. HP has been building servers from Foxconn for a year, but is now giving a name to its server line: Cloudline.

According to HP, its systems are based on standards-based principles and use rack scale computing.

With rack scale systems, functions that were previous located in the server, such as cooling and power, may be part of the rack. The systems will likely be deployed in multi-vendor environments, although users want uniformity in controls.

HP will use the Intelligent Platform Management Interface (IPMI), an open management platform, and other systems that help provide a uniform way of managing hardware.

The hyperscale x86 server market has been growing fast, and this has led to increasing numbers of original design manufacturers (ODM), such as Taiwan’s Quanta entering the game.

HP is announcing these OpenStack systems at the Open Compute Summit and will begin taking orders on some of the systems at the end of this month. The systems use Intel Xeon E5 v3 processors and come in five configurations, including a two-socket (2P) server sled configuration and 1U configurations. No word on pricing yet.

Hyper scale data centres give storage boost

emcboxIDC said that the storage market ended well. In the last quarter, worldwide enterprise storage systems revenue grew 7.2 percent year on year to amount to close to $10.6 billion.

And capacity shipments rose by 43.7 percent compared to the same quarter the previous year to represent 99.2 exabytes.

Eric Sheppard, a research director at IDC, said spending on enterprise storage grew in most markets worldwide with factors including demand for midrange systems using flash memory and systems designed for hyper scale data centres.

EMC was the top dog in fourth quarter, with a 22.2 percent market share. That company was followed by HP (13.8%), Dell (9%), IBM (9%) and Netapp (7.2%).

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Server market grew in Q4 2014

HP-MicroServerFigures supplied by market analyst company Gartner showed that the worldwide server market grew 4.8 percent in shipments for the fourth quarter of 2014.

And revenues grew 2.2 percent in that quarter, compared to the fourth quarter of 2013.

Jeffrey Hewitt a VP at Gartner, described server market for the whole of 2014 as showing strong growth. Growth for the whole year was 2.2 percent.

“Hyper scale data centre deployments as well as service provider installations drove the X86 market upwards,” he said. “Enterprises had less unit growth impact because of the ongoing presence of physical server consolidation through X86 server virtualisation. This overall market growth developed despite declines in both mainframe and Unix platforms.”

HP was the leader server vendor in the quarter in terms of revenues, but only grew 1.5 percent in the whole year. Its market share is 27.9 percent worldwide. IBM showed a decline of 50.6 percent, and Lenovo had extraordinary growth of 743.4 percent. This is because IBM sold its X86 server business to Lenovo in the fourth quarter.

Dell is the second biggest vendor with 17.3 percent in terms of revenues, IBM third, Lenovo fourth and Cisco fifth. “Others” had a market share of 28.6 percent.
HP also led the pack in terms of shipments, pushing out 642,007 units in the fourth quarter.