May 2003

HP restructured its enterprise server business

HP made announcements on the one-year anniversary of its merger with Compaq which touted its emerging Adaptive Enterprise strategy, technology and plans which permit customers to respond quickly to spikes in demand for processing power across operating environments including HP-UX, Linux and Windows. The HP Virtual Server Environment is a new Unix server application that allows companies to monitor and balance their server resources based on a set of priorities for their business needs. Adaptive Enterprise appears to be pitched at the highest level of HP customer, based on a presentation given to attendees at the most recent Interex e3000 Solutions Symposiums. A roomful of the more typical HP 3000 customer appeared befuddled in San Jose when HP gave a presentation on Adaptive at the last Solutions Symposium. The strategy, which lets IT managers redirect computing power across several platforms on the fly, looked better positioned for companies the size of Continental Airlines, one of the early adopters of the strategy. In contrast, IBM’s OnDemand initiative has relevance to its iSeries customer base.

HP’s announcements also included a restructure of its Enterprise Systems Group to more closely align that business with HP’s services offerings. For example, HP will offer companies a $25,000 two-week assessment of their agility, an engagement where HP determines a company’s flexibility and finds where adopting more flexibility would have the greatest financial return on investment. ESG offers the HP-UX platforms that HP has pushed hard as a migration destination for 3000 sites leaving MPE. HP’s presentations at San Jose also indicated the company wants customers to contract with HP directly for their migration services needs. HP combined server and storage groups under Senior Vice President Scott Stallard, while creating a new unit aimed at more tightly linking sales and services and another unit focused on operations.


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