Meg Whitman, CEO of HP.Credit Kyle Green / Idaho Statesman, via Associated PressHewlett-Packard announced Thursday that it would sell a new line of switches that are manufactured by a Taiwanese company and rely on networks, open source software based on Linux on the other company.HP, once a center of high technology production, will not make the new computer on the network, but acts as a market, providing both system and online support worldwide for the product.
It is the announcement derive more from HP by CEO Meg Whitman announced last October that the company was split into two different companies. One will focus on businesses, and other consumer products.The network type movement, firmly in the business of technology, shows the exchange rate at HP and other technology giants more to do to survive in a market transformation.
In its last fiscal year, HP took in $ 2.6 billion of its network business property, equipment,, cheap open source networks formally began in 2009. In the long term could threaten HP's existing businesses, especially if open source products make expected gains in power and capacity. HP is not the only manufacturer of networking threatened by the changing market.Cisco Systems remains by far the largest maker of networking equipment, with $ 47 billion in annual revenue, and depends heavily on proprietary products. Gear networks has been considered an important part of future HP, however.
We see a change, said Mark Carroll, CTO of HP's networking business. "The traditional market, the only supplier in the market, through many vendors." Featuring an open source product consists largely mass market chip, the thinking goes, HP will be able to remove Cisco. Mr. Carroll has called the embrace of open source development of HP's strategy of your company. Note that the markets are growing and going there, he said.Sold complex and proprietary, data storage, networking and software for decades, customers are now systems that can be arranged in different ways, with open software servers combinations asking -source can play with in-house. New methods promise advantages in terms of speed, cost and innovation.
Moreover, new entrants are affecting the company. Now companies rely on Informatica Amazon rental business for many needs. Facebook announced last week a switch to open source intended to undermine prices and innovation in the field of speed. Mr. Carroll said HP looks absolutely breaker Facebook playing in the same space as networking open source HP.
The actual manufacturer HP boxes, Accton Technology, backed by HP for 20 years. The open source software will be provided by Cumulus Networks, which announced last year that provide Dell with the software for network box inexpensive. The Cumulus relationship with HP is not exclusive, and HP could add more suppliers in the future.
HP wants the software and service margins and to get rid of being in the hardware business, said JR Rios, CEO and founder of Cumulus. Other network providers will get on board with this.The initial target customers for the product, available in March, are telecommunications companies and financial. Both use a lot of cloud computing, mobility, social networking and resource-big data in their data centers.
Every major technology company is going through this: We built a big business in the old world. Now, how can we use that money to be relevant in the new? "He said Jeremy Burton, president of products and marketing at EMC, the world's largest manufacturer of equipment for data storage. In April, HP announced a joint venture with Foxconn, another Taiwanese contract manufacturer for production servers low-cost cloud computing. IBM, unhappy with profit margins of low-end servers, has sold his business Lenovo China.
Dell has become a private company, to reshape itself into a world of business technology of cloud computing and open source software. EMC has purchased a number of software companies, computer networks, Mr. Burton said, and is giving away more software that allows you to put on property income, hoping to sell other companies products based free stuff.It a great trip for all of us, certainly, Burton said. Some do.
