Is 'New Style Of IT' Good For HP Customers? - InformationWeek

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Is 'New Style Of IT' Good For HP Customers?
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BruceHarpham
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BruceHarpham,
User Rank: Apprentice
11/5/2014 | 12:07:53 PM
Perception of hardware value
It's interesting to see that hardware is perceived as less valuable. In a sense, I can understand that trend. However, I think ignoring hardware can lead to a kind of magical thinking ("the cloud will deliver the data" vs "Data Center XYZ in Ohio will provide the data").
ChrisMurphy
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ChrisMurphy,
User Rank: Author
10/9/2014 | 9:56:20 PM
Re: What am I missing?
Your point about commodization of hardware is right on. Facebook and other Open Compute believers talk about 'vanity-free' servers, meaning they don't have any branding on them. 
Laurianne McLaughlin
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Laurianne McLaughlin,
User Rank: Apprentice
10/9/2014 | 4:37:35 PM
Hardware loyalty
Is there any kind of hardware loyalty these days -- outside of smartphones?
TerryB
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TerryB,
User Rank: Ninja
10/9/2014 | 12:59:34 PM
What am I missing?
A "software centric world". So what does the software run on, a real cloud? All cloud means is hardware is somewhere else, maybe many places for resilency. But it uses hardware. And people consuming "cloud software" still need a hardware device. Regardless of hype, businesses are not running from their iPhone consuming cloud software.

In my opinion, this about the commoditization of hardware. There are no margins in that anymore. IBM recognized that a decade ago when they sold their PC business to Lenovo. But they still make servers, they are bright enough to know that is never going away. And I don't mean hardware for servers like HP, they also have some of the finest o/s in world running on them. HP never had that, they have to compete on bare metal alone.

Somebody has to be willing to make and sell hardware even with thin margins. It's like HP doesn't think they can rule that market, so they separate the part where they are dealing in services so they don't drag that down also. That business is a sort of "hedge fund" for them, even though they have a long way to go to compete in that market with the IBM's of the world.
Gigi3
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Gigi3,
User Rank: Ninja
10/9/2014 | 1:40:57 AM
Re: The Split
"I'm amazed that a company that can cut itself in half and still be in the Fortune 50 is also a company that is perceived to be struggling. It's a sign of how fast the technology industry is changing. But it also seems like HP is trying to adapt to a software-centric world."

Drew, interesting and that's the way corporate world grows. "Split and grow" is the motto now. I read that Semantics also have similar plans for a splitting.
Gigi3
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Gigi3,
User Rank: Ninja
10/9/2014 | 1:38:28 AM
HP Split Good or Bad?
"HP has an opportunity, because enterprise IT teams face a lot of pain ahead as they try to shift to a software-driven data center that can quickly react to fast-changing business needs. Such an agile data center is a dream today for most companies."

Chris, so you mean that this spit will help HP for a better growth? Quiet sometimes back they had done a split based on hardware and software business. Is it success or flop?
zaious
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zaious,
User Rank: Ninja
10/9/2014 | 1:31:46 AM
Re: The Split
@Drew: Your perspective is interesting. It is split, but still pretty big compared to many. However, they need to move with caution. I do not know why, but it kind of reminds me of Nokia. Once it was so big and looked in good shape for time being. But, it fell. HP has not taken very good decisions in last couple of years, may be this will be a good one. I will wait to see the events unfold in future.
Drew Conry-Murray
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Drew Conry-Murray,
User Rank: Ninja
10/8/2014 | 2:10:47 PM
The Split
I'm amazed that a company that can cut itself in half and still be in the Fortune 50 is also a company that is perceived to be struggling. It's a sign of how fast the technology industry is changing. But it also seems like HP is trying to adapt to a software-centric world. Besides Helion/OpenStack, the company's new SDN app store is a clear indicator that it's taking software seriously. That said, Helion and SDN apps are big gambles, and we still have to wait to see if they pay off.


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