HPE: Smaller Is Better
Nov09

HPE: Smaller Is Better

Hewlett Packard Enterprise (HPE) has been pushing a smaller-is-better strategy for the last few years, spinning off PCs and printers, services and software, and now it looks like it’s applied that strategy to its mission-critical server line. Superdome Flex, the follow-up to Superdome X, the server family that started the company’s RISC-averse transition from Itanium to Xeon, opens up a $6-8 billion market that HPE wasn’t able to address effectively, HPE’s Randy Meyer, VP & GM, Mission Critical Systems, told IT Trends & Analysis. When it comes to the mission-critical x86 server market, driven by database, Oracle and SAP HANA applications moving from Unix to Linux, there were only a couple of choices, he said. While the up-to-16-socket Superdome X does the job well, the problem was at the bottom with 4-socket entry-level systems, especially for customers who knew they were going to eventually need more sockets. “In the Superdome X form factor, you paid a lot for the infrastructure.” With Flex, HPE went modular, making it much easier — and affordable — for customers to grow from 4 sockets all the way up to 32. “All of a sudden you have customers saying this is really cool.” Meyer believes this will open up a “huge chunk” of the market, and the ability to scale up and down will appeal to large customers, as well as the previously untapped midmarket. Following a couple of slow quarters, server revenues climbed 6.3% year over year to $15.7 billion in the second quarter of 2017, while midrange server revenue shot up 19.6% to $1.5 billion, and demand for high-end systems tumbled 18.9% to $1.3 billion, according to IDC. HPE held on to top spot (21.3% of the market), but revenues slid 8.4% YoY to $3.3 billion, while second-place Dell (17.7%) posted 7% YoY revenue growth. x86 server demand increased 10.4% to $14.3 billion, while non-x86 servers declined 21.5% to $1.5 billion. “Demand for two-socket form factors continues to control a majority of unit shipments now and going forward as they are the sweet spot for density-optimized servers which are used in datacenters,” said IDC’s Lloyd Cohen, director of Worldwide Market Analysis, Computing Platforms. Gartner’s server numbers were lower: 2.8% YoY revenue growth to $13.9 billion, and a 9.4% marketshare decline for HPE. RISC/Itanium Unix servers plummeted 21.4% in shipments and 24.9% in vendor revenue, which at least did better than the ‘other’ CPU category, which is primarily mainframes, down a whopping 29.5% in revenue (and that’s after an infrequent IBM z Series refresh). HPE reported significantly better results for high-performance computing. For its latest quarter the company said revenue from the HPC...

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Lenovo and SAP Expand/Extend Partnership

Every partnership carries some history, and the one between Lenovo and SAP is both rich and complex. The relationship actually began some years before Lenovo acquired IBM’s System x Intel-based server group in October 2014. Prior to that, IBM System x solutions had played a significant role in the evolution of SAP HANA. That was, in part, because of the company’s industry-leading eX memory technologies/capabilities, a factor that led System x to a leadership position in SAP HANA solution sales. Since then, Lenovo has extended the innovative qualities of System x offerings with its own X6 mission critical solutions, its preferred platform for SAP HANA and other big data and analytics technologies. The fact that SAP has decided to base its own SAP HANA Enterprise Cloud service on Lenovo systems attests to the proven value and performance of these solutions, as does Lenovo’s robust sales of SAP HANA-focused solutions. To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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SpaceCurve – New Dimensions for Big Data

In December 2014, SpaceCurve will announce a spatial data platform that is designed for big data systems and spatial data, enabling real-time ingest, index, query and correlation of spatial, sensor, “Internet of things”, mobile device, social media and other streaming and historical data sources for real-time analytics and business insights. SpaceCurve has completed beta testing, the solution is generally available and they have five customers. Traditional data architectures weren’t designed to handle spatial data at the speed and scale required to gain insight that can answer complex spatial questions in real-time. SpaceCurve has been architected for large volume (imagery data, for example) fast-moving data (from sensors) and the complex fusion of several types of data (weather, chemical, terrain, for example.) To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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Unisys: Who Do You Want To Be When You Grow Up? Part 1 of 2
Oct15

Unisys: Who Do You Want To Be When You Grow Up? Part 1 of 2

DALLAS: It’s one of the IT industry’s best-kept secrets, but Unisys is hosting its second annual (although the company, in one form or another, is more than a century old) user — and partner — event, Universe 2014.  With less than 400 customers, partners and staff, it’s also one of the most intimate industry events I’ve ever attended. It was also strange that two of the other companies hosting events in this hotel were Ericsson and Honeywell. The last time I talked to Unisys, both companies were still selling computers, and that was a long, long time ago. Unisys is a strange duck, neither fish nor fowl. At one time a member of the group known as  “IBM and the  Seven Dwarfs” in the 1960s, it became one of the BUNCH — Burroughs, UNIVAC, NCR, Control Data Corporation, and Honeywell — in the ‘70s after RCA and General Electric stopped making computers. IBM outsold all of the others combined, but Unisys moved up to second when Burroughs purchased Sperry (Univac’s new owner) in 1986. In the following 28 years the company tumbled from $10.5 billion in revenues and 120,000 employees to $806 million for its last quarter, ($3.5 billion 2013 revenues) with a net loss of $12.1 million, and just over 23,000 staff. Minus one. Less than a week before this conference it announced that CEO and Chairman Ed Coleman was being let go, effective the December 1.  After years of lower sales and recent weaker-than-expected profits, lead independent director Paul Weaver said in a statement that it was time to search for a new leader Year over year, Q2 revenue dropped 10% in North America, and 3% for the rest of the world. Services revenue was down 4%, but the backlog was $4.7 billion, down 2% from December. Technology revenue was down 20% YoY, driven primarily by lower sales of ClearPath enterprise servers and software. Unisys sells primarily to large enterprises and governments, and generates most of its revenues from services, including building and integrating hardware and software systems, providing ongoing hosting and management of data, Business Processing Outsourcing, outsourced help desks and End User Services, Secure Cloud, planning operational processes and changes, and providing security services. The company’s current product lineup includes: –Stealth secures data-in-motion and controls the information sharing within or across networks by employing an innovative data cloaking technique; Stealth for Mobile enables authenticated and secure access to application processing environments in the data center from mobile applications; and Stealth for Amazon Web Services is designed to leverage the cost-savings benefits of using the public cloud, but have been reluctant to do so due to security...

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Amidst Trials And Tribulations: HP’s Road To Re-Discover-y
Jun08

Amidst Trials And Tribulations: HP’s Road To Re-Discover-y

LAS VEGAS: Along with 12,000 or so of its customers, partners and staff – with or without the 11,000-16,000 employees who were added to the soon-to-be-ex-HPer list two weeks ago – I’m back in Sin City for HP Discover 2014. With most of the action taking place on Tuesday and Wednesday, I thought I’d take a look at some of the recent developments at the world’s largest IT vendor, including its latest financial results, new job cuts and growing datacenter aspirations. Best known for PCs and printers, and stuck in commodity hell like its much smaller IBM-wannabe competitor Dell, HP has been struggling to become more of an enterprise products and services powerhouse. Cisco CEO John Chambers painted a bleak picture for HP (and IBM) at last month’s Cisco Live. “You’re going to see a brutal, brutal consolidation of the IT industry,” he warned, hinting at a “musical chairs-like movement” over the next few years. He further predicted that many of the current players in “high tech” won’t exist 10 years from now. Citing Gartner research and recent earnings reports, Chambers pointed fingers at IBM and Hewlett-Packard, saying the beleaguered tech giants haven’t produced revenue for some time. Following on the heels of Chambers’ comments, HP’s latest financial results, flat sales for Q2, and an additional 11,000-16,000 job cuts, didn’t make things easier for CEO Meg Whitman. This will bring the total number of employees leaving under the previously announced 2012 restructuring program to as many as 50,000, she said during the following analysts’ call. “No company likes to reduce their workforce but the reality is that HP must be maniacally focused on continuous improvement in our cost structure.” The extra staff cuts will result in gross savings of a $1 billion. That is incremental to the $3.5 billion to $4 billion that we announced for the 34,000, she said. Whitman also commented on the overall shape of the company, how its doing halfway through her five-year reorganization makeover, and living in a market that’s shifting at “warp speed”. “This is the fastest market shift I’ve seen in my career. And by the way you know I grew up mostly in the consumer space which tends to move faster than the enterprise space. I would actually say, I am feeling more confident because we have seen a stabilization of revenue, the very high single digit declines are over. We’ve had three quarters of pretty good stabilization. And I really like our product roadmap.” However Technology Business Research believes more far-reaching changes are required. HP Software’s bread-and-butter, ITSM, is moving to a services-led model, a transition which was initiated by...

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