HP pushes "traveler plan" server business changes

"The new CEO, Whitman, attaches great importance to the server market. This is evident from her understanding of HP's future strategy. Next, we will devote a lot of energy to the infrastructure." On the afternoon of March 16, HP Vice President Chuck Smith was In an interview with reporters, he expressed high expectations for the future of the server business.

As a server market powerhouse, Hewlett-Packard was plagued by a series of unrest incidents such as the Itanium incident and the replacement of the CEO last year. In the Whitman New Deal, in 2012 HP is trying to restore the decline.

The three major plans, the Voyager, Odyssey, and Moonshot, are three sounding names that are HP's transition roadmap for its server business.

The HP ProLiant Gen8 server, which was officially launched by HP on March 16th, cost US$300 million and applied for more than 900 patents. It is the product of its server transformation initiative “Traveller Plan”. "This is a big investment in HP's project investment in recent years," HP insiders said.

"It must change." Chuck Smith said that the traveler plans to launch is very urgent. “Data center operation and maintenance has always been a headache problem.” Chuck Smith said: “The core of the Traveler plan is to improve the level of server work through all-round automation of tasks, reduce the cost and mistakes of manual operations, and reduce downtime to improve server operating efficiency. For example, In a typical data center of about 1,000 square meters, the average cost of labor for server maintenance in the three years is 24 million US dollars. Traveler plans to release this part of the cost."

"Over the past five years, customers have chosen a server platform, which has evolved from the original Unix platform to many x86-based platforms nowadays. It adapts to different customer platform needs and ensures that key business computing is better supported and maintained. Redefining future critical business computing is the second stage." The Odyssey Plan's focus, said Chuck Smith.

The three major plans for the HP server began with the moon landing program launched in November last year. “The moon landing plan focuses on changing the server construction method for extremely low energy consumption calculations, mainly based on the cloud service and network market. In 2015, this market will account for about 50% of the server market,” said Chuck Smith.

An industry analyst who declined to be named said that the Moon, Odyssey, and Traveler programs actually target the low-end, high-end, and midrange server markets respectively.

The mission of the server "The current Hewlett-Packard company's new strategy mainly includes four parts: infrastructure, software, services and solutions. Among them, with infrastructure facilities as the core business, software development as the core business, service value-added as the core business, through The solution is to solve customer problems.” Xiao Jiansheng, vice president of HP and general manager of industry-standard server products at China, knew the new CEO Whitman’s new deal.

"HP DNA is an infrastructure area. Servers, storage, workstations, etc. are HP's main lines," Whitman said in a public speech in February this year.

HP's New Deal background is one of the company's series of turmoil in 2011, on the other hand, it is derived from not-so-pretty financial reports in recent years. Revenue for the full fiscal year 2011 was US$127.2 billion, an increase of only 1% year-on-year. In terms of the ESSN (enterprise server, storage and network) division, revenue fell by 4%. Among them, the key business system department (BCS high-end server), revenue declined by 23%, the largest decline, the CFO Cathie Lesjak is indeed rumored to be affected by Oracle Itanium.

"The Odyssey plan can reverse the impact of the Itanium incident on HP, allowing HP to bypass Oracle's restrictions and find a new path for development in the high-end server sector." The analyst, who declined to be named, told reporters.

In fact, the biggest increment of server in the future is still the x86 architecture server. Zeng Junqing, Research Director of Gartner Asia Pacific Data Center, told reporters, "The Unix server market will have a smooth development in the future and the total market volume will remain flat; the x86 server market will continue to expand. HP's three major plans are in line with the server market trend."

According to the Gartner report, in 2011, the Asia Pacific server market shipments and revenue increased by 21.3% and 17.7% respectively from 2010, and continued to show double-digit growth. The x86 server has continued to grow since the first quarter of last year and is currently the most important growth engine for the server market in the Asia Pacific region.

"The x86 server is exactly what HP is good at," Zeng said. It was also the focus of HP's "three plans." HP's currently under-prioritized business-critical servers are driven primarily by Unix, but x86 servers are showing strong competition in the business-critical server market.

"Hewlett-Packard used to have a strong competitive edge in the server market and must continue to give play to its advantages. The New Deal emphasizes that infrastructure facilities are the core business of the future." said Zhang Yingjuan, a senior researcher at the Industrial Research Institute of the Industrial Securities Institute. "Cloud computing must generate a lot of Server needs, everyone wants to break into this market."

In 2011, the global server market revenue increased by 7.9%, and shipments increased by 7%. HP and IBM respectively led the two indicators of shipments and revenue. However, in 2011, the corporate server, storage, and networking departments that often served as the highlights of HP's financial reports did not produce satisfactory responses. As the "seed player" in the core business infrastructure of HP's New Deal, the server is shouldering heavy responsibility this year.

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