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HPE Will 'Continue to Work With Telefónica' on Unica

Mitch Wagner

Hewlett Packard Enterprise says it "will continue to work with Telefónica" on a broad NFV deployment, according to an HP spokesman, following the disclosure last week that the Spanish operator is seeking to replace the IT vendor as its primary virtualization partner.

Telefónica SA (NYSE: TEF) appointed Hewlett-Packard as the lead vendor partner for its ambitious, multi-vendor Unica virtualization project, announced at Mobile World Congress in March 2015. But less than a year after the relationship was announced, Telefónica has re-opened its lead systems integration and technology supplier bidding process, with industry sources suggesting that the operator is dissatisfied with Hewlett Packard Enterprise 's efforts as a multi-vendor integration partner. (See Telefónica Ditches HPE as Virtualization Lead and Who Might Replace HPE at Telefónica?)

Telefónica's door is still open to HPE, though, as the vendor is allowed to bid in the new process.

Find out more about Network Functions Virtualization on Light Reading's NFV Channel.

In an email statement sent to Light Reading on Tuesday by Howard Clabo, the vendor senior VP of global communications at HPE, says it will continue to work with Telefónica. The full statement reads:

    UNICA represents a first for Hewlett Packard Enterprise, Telefónica and the industry as we pioneer building a truly multi-vendor, open carrier network. HPE was selected as the technology provider and systems integrator of UNICA earlier this year. Consistent with Telefónica's intent for UNICA to be truly multi-vendor, it has opened up an RFQ update with a priority on multi-vendor participation. HPE will work closely with other NFV ecosystem vendors that might be brought into the project and will continue to work with Telefonica on our planned UNICA solution deliverable.

The vendor declined to respond to specific questions from Light Reading, saying the details of its agreement with Telefónica prevents it from commenting further.

Subsequent to Light Reading breaking the news of the HPE-Telefónica relationship hitting the skids, Raymond James analyst Brian Alexander warned that the problem "could be impactful" to HPE and could make the company's revenue targets "difficult to achieve," according to a report on Barron's Tech Trader Daily.

HPE closed at $15.20, down 0.2%, on Tuesday.

— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to [email protected]

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1/7/2016 | 10:56:32 AM
Re: Bad sign.....
@Mitch, I would imagine that it's a fairly large blow to their ego and reputation as well at this point. 
Mitch Wagner
Mitch Wagner
1/4/2016 | 10:57:32 AM
Re: Bad sign.....
the bulk - Oh, absolutely yes. HPE is whistling past the graveyard here. 

Or if not the graveyard, the hospital. This is a severe blow to HPE's telecom initiative. 
12/31/2015 | 10:54:29 PM
Bad sign.....
I have to think that the opening of bidding for other vendors so soon after the relationship started is a bad sign for HPE. 
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