Infrastructure // PC & Servers
10:16 AM

IBM Tops Oracle, HP In Data Center Win

Indian engineering giant Escorts Group opts for Power systems over PA-RISC, Exadata, as part of a technology refresh.

100 Years Of IBM: 25 Historic Milestones
Slideshow: 100 Years Of IBM: 25 Historic Milestones
(click image for larger view and for slideshow)
IBM will deliver Power 750 Express and Power 740 Express systems to the Escorts Group, which is based in India and manufactures railway, automotive, construction, and other lines of heavy equipment. Escorts chose the IBM Power technology over HP's Itanium-based PA-RISC systems and Oracle's Exadata Database Machine, which is based on technology Oracle inherited through its $7.4 billion acquisition of Sun Microsystems last year.

Financial terms of the deal were not disclosed.

HP is struggling with uncertainty in the corner office. The company on Thursday ousted CEO Leo Apotheker after less than a year on the job and replaced him with former Ebay chief Meg Whitman. There's also doubts about HP's long-term commitment to the Itanium platform. The deal isn't a total loss for Oracle, however. Escorts will use the new infrastructure to expand its deployment of Oracle ERP software.

[ IBM has won other deals in India recently. Read IBM Wins 'Strategic' PepsiCo India Deal ]

IT officials at Escorts said the installations are part of a larger, strategic technology refresh that will gird future expansion.

"Escorts Group has embarked on a journey of IT transformation to achieve operational and manufacturing excellence," said Escorts CIO Vipin Kumar, in a statement. "To achieve this we are not only going beyond prevailing norms, we are in fact setting our own standards and relentlessly pursuing them to achieve our desired benchmarks of excellence."

Escorts is expanding amid strong demand for its machinery. Sales were up 32.5% year over year in the most recent quarter, while net profits jumped 77%. It's the kind of growth that IBM is counting on to justify its heavy investment in India. Big Blue is no longer looking at the subcontinent simply as a source of low-cost labor, but also as a huge market for IT products and services in its own right.

"IBM has extensive global experience in helping clients implement solutions that save money, create operational efficiencies, and improve competitiveness," said Viswanath Ramaswamy, IBM's Power Systems manager for India. "The solution we designed for Escorts provides a strong platform for further development and growth."

IBM's revenue from growth markets, including India, Brazil, Russia, and China, jumped 23% in the most recent quarter.

Attend Enterprise 2.0 Santa Clara, Nov. 14-17, 2011, and learn how to drive business value with collaboration, with an emphasis on how real customers are using social software to enable more productive workforces and to be more responsive and engaged with customers and business partners. Register today and save 30% off conference passes, or get a free expo pass with priority code CPHCES02. Find out more and register.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Server Market Splitsville
Server Market Splitsville
Just because the server market's in the doldrums doesn't mean innovation has ceased. Far from it -- server technology is enjoying the biggest renaissance since the dawn of x86 systems. But the primary driver is now service providers, not enterprises.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of July 17, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.