Global leader in personal computers and servers, Hewlett-Packard decides to jump into the cloud services this time with their cloud apps to be aired soon. As per the internal executive’s statement, H-P is about to air its cloud services, which are expected to be similar to the cloud platform offered by renowned online retailer Amazon.com Inc.’s (AMZN) Web Services. This seems like HP intent to shifting their focus on high margin cloud computing sector.
H-P assured that it will not be competing over prices, but plans to provide structured and unstructured databases and data analytics as a service curtsy Autonomy Corp, which they have acquired in August 2011 for a handsome consideration of $10.3 billion. With Autonomy, H-P became a strong contender in the $55.0 billion business analytics software and services market.
They are expected to face tuff competition from Amazon who is also stepping into the unstructured “ NO SQL” database as a service, while IBM going to offer various analytics services in the cloud. Following Microsoft windows Azure and Google Apps, H-P will be offering its services for the programming language such as Ruby, Java and PhP. This shift from low margin PC business to high margin cloud, H-P is also eyeing to provide services for cloud data storage, for which they have already acquired 3Par , Inc at $3.25 billion. H-P’s cloud infrastructure is popular among its customers. But its software- as-a-service offering may take some time to ramp, as it will be first used by the existing customers.
Source : zacks.com