Feeds

HP sweet talks the hand that feeds IT

Now is the time to spend (on us)

HP ProLiant Gen8: Integrated lifecycle automation

These days, no IT vendor seems to be capable of doing a plain, old-fashioned product launch. And now, with Hewlett-Packard owning Electronic Data Systems and giving IBM a run for the product and services money in the data centers of the world, it seems like everything has to have a services angle.

Hardware gets cheaper and cheaper every year thanks to Moore's Law, but HP, IBM, and hundreds of other key suppliers of IT are thankful that people are not transistors. People get more expensive every year (until you outsource them, but the process soon resumes), and they think up clever ways of solving IT problems that companies will pay hard-earned cash for.

So it is with HP's Technology Solutions Group behemoth, which is taking a multi-prong approach in trying to convince IT shops that now is the time to do an IT makeover. You should start building now, HP is saying, for the economic recovery that will inevitably come.

HP's top brass are assuming the worst for 2009. They say that the rest of the year will be as tough as the fiscal first quarter ended in January - hence the cost cutting and wage cuts on top of EDS-inspired layoffs at HP. But the company's sales pitch to customers today is that this is the perfect time to do IT projects.

"It is very, very challenging for customers," admits Deborah Nelson, senior vice president for marketing at HP's Technology Solutions Group, which is responsible for peddling servers, storage, software, and services. (Basically, everything HP does except PCs and printers and a smattering of financing). "CIOs are being asked to conserve cash, manage costs, and still deliver better technology."

But the stakes, it seems, are much higher. Citing statistics from the Corporate Executive Board, a hybrid market researcher and think tank based in the suburbs of Washington, D.C., Nelson says that during the last recession (which ran from 2001 through 2003 for all intents and purposes), 40 per cent of companies ranked in leadership positions by the CEB before the recession had lost that position by the time the recession was over.

"So making the right decisions, and getting the technology right, is really crucial right now," she says. "The thing to understand is that customers do not have to spend more money to drive changes."

And among the companies polled by the CEB, the average spending on innovation - new applications to chase new business - is twice as high among the best-in-class companies compared to the rest of the pack. Typically, that translates to spending two-third of an IT budget on maintaining the applications and systems they currently have and one-third on new code and innovation. And some companies are catching on to this idea or are learning from the last downturn.

Reducing security risks from open source software

Next page: Survey says...

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.