Feeds

HP's big splash on EDS all about shrinkage

Hurd 'The Butcher' gets out his knife

Internet Security Threat Report 2014

The Extra Dash of Smarts

The $12bn marketing gamble only pays off if people really start consolidating on a massive scale, and they will.

There's no doubt that a certain class of applications will move to the utility computing model. These are the boring applications that you're already pulling off Unix boxes or lots of x86 systems and slotting on a couple of four-core Xeon machines. The process of moving all that code to utility services will take a very, very long time. You have to convince customers it's a safe and economical venture.

Most companies will try and reorganize their own operations before reaching that utility computing end point. So, that's customer X looking to get rid of gear and then gradually moving applications into the fabled cloud over many years.

Along the entire utility computing journey, HP can now offer some theoretically stellar consolidation services because, damn it, it's the expert at this stuff.

That's a pretty savvy play since the server makers are already losing out on hardware sales today thanks to better machines and virtualization code. HP can at least make as much money as possible off the shrinkage.

This may all seem basic enough, but I think there's some richness and complexity to HP's story.

Sun, for example, talks a lot about the boring applications which are consolidating and the interesting applications - high performance computing stuff, massive databases, SaaS pieces - that demand as much horsepower as possible. Thing is, Sun only really cares about catering to the latter crowd. It wants to sell more and more boxes all the time. The consolidators are no good to it.

Dell would like very much to have some of the consolidation action, but its services business is small tamales compared to HP's or IBM's. When Exxon or Pixar or GM want to shrink the hell out of their data centers are they going to turn to Dell or to HP, which revamped itself and then freaking EDS?

And versus IBM, well, HP's acquisition of EDS may help it put a fresh face on super-hyper-global-mega services.

See, Hurd The Butcher has turned cost-cutting into a religion. He's - dare I say it - put the, er, sexy back into consolidation. (Ouch - Ed.) Or at least he's going to once he's done revamping EDS.

But seriously, you can see where this is heading. Hurd will offer the Fortune 2000 a little piece of himself - a chunk of that magic that's done so very much for HP's share price and bottom line.

All Hurd has to do to pull all this off is ensure that the EDS swallowing is a success. That means no prolonged charges hitting HP's earnings. It means no technology integration disasters. And it means streamlining EDS's internal IT operations as quickly as possible.

Should all go according to plan, mark my words: Hurd The Butcher will come to consolidate you. ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.