HP Cloud Services Encourages Government and Enterprise Markets

Event Summary

January 25, 2011 – HP launched new products and services to help businesses and governments leverage private, public and hybrid cloud services while meeting required security, performance, and availability: Service Automation simplifies application deployment and management; Cloud Maps speed infrastructure design; Discovery Workshops, educate personnel; Financial Services ease capital costs. In Europe, new services are hosted from UK infrastructure and strengthen HP’s local market position.

Quick Take

Analytical Summary

• Current Perspective: Positive on HP’s launch of UK Cloud Computing Services, because HP is in market building mode. HP is not the first to market, but its stature in traditional outsourcing lends authority and scale to the cloud, for which some customers have been waiting. Components of the launch include HP Financial Services and Cloud Discovery Workshops to encourage enterprise and government customers to take first steps towards cloud computing. These steps will draw in newcomers to cloud services and HP’s guidance in early choices will give them more confidence.

• Vendor Importance: Moderate to HP, because this is still a small, immature market that will represent a tiny fraction of HP’s income for some time, particularly as it focuses only on the UK market within Europe. Even so, it places HP at the forefront of a developing sector that is capturing excited interest from the industry, growing demand from customers and will supersede some traditional hosting services. HP is placing itself well to enjoy a leading role and an eminent brand relatively early on in this expanding market.

• Market Impact: Moderate on the cloud computing market, because HP is initially overlooking SMEs, one of the natural constituencies of cloud computing and a group vital to achieving the critical mass of customers needed to maximise market economies of scale. HP is only addressing large accounts, governments included. At present, many are bereft of cash to invest in new technology and nervous about the long term implications of public/private debt exercises, where capital costs are translated to OpEx costs. Countering this concern is a common pressure to save costs now, while making use of existing investments. If economies improve soon HP will, at least, have cloud leads in big accounts.

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