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Cloud Watch: HP to Cut 9,000

Craig Matsumoto
6/1/2010

Let's not kid ourselves -- cloud news is dominated by one company today...

  • HP Inc. (NYSE: HPQ) will cut 9,000 jobs and take a $1 billion restructuring charge as it revamps its data centers between now and 2013, the company announced this morning. That refers to its outward-facing data centers; in other words, this is a consequence of the massive purchase of Electronic Data Systems (EDS) in 2008. (See HP's $13.9B Power Play.)

    Computerworld points out that the $1.6 billion acquisition of Opsware in 2007 plays a role, too; Opsware was all about data center automation. HP also owns thin-client technology from Neoware, acquired at about the same time.

    The 9,000 jobs will be trimmed during the course of three years, and 6,000 of those will be replaced by "sales and delivery" positions, according to HP's SEC filing.

    About half of the $1 billion charge will be taken in HP's third quarter, which ends in July. The rest will be spread between now and 2013.

    HP stock was up 32 cents (0.7%) at $46.33 in early afternoon trading.

  • Voltaire Inc. (Nasdaq: VOLT) has announced a partnership with Platform Computing , teaming Voltaire's unified data-center fabric software with Platform's LSF workload management software. LSF assigns tasks to computing elements more efficiently, as shown in this nifty picture. Wonder what they'd do with this.

  • A new Burton Group report lists five reasons why cloud computing uptake isn't what people expected. As noted in a Techworld blog, the reasons go well beyond security, into areas vendors don't always like to talk about -- fear of being locked into one service provider, for example.

  • Along similar lines, financial institutions like the cloud but not the public cloud, as Information Week's Charles Babcock found. His blog outlines a panel discussion where he tried -- not so successfully -- to dispel suspicions about privacy and cross-contamination. Your bank won't be running on Amazon.com Inc. (Nasdaq: AMZN) servers any time soon.

    Other recent missives from the cloud:

    — Craig Matsumoto, West Coast Editor, Light Reading

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    paolo.franzoi
    paolo.franzoi
    12/5/2012 | 4:34:04 PM
    re: Cloud Watch: HP to Cut 9,000


     


    A zillion years ago, I used to work for Racal-Datacom (aka Racal-Milgo) in the Enterprise business.  We used to talk about the Network 500, which in those days were Banks, Airlines, Financial Services, and Insurance companies.  These are businesses that ARE their network. Their ability to adopt public data networks over shared infrastructures are quite limited.  Not zero, but even using Frame Relay for branch office connectivity took years (5 - 10).


    I used to use this question to help people understand.  How much per minute do you think it costs Bank of America to lose their line to the Federal Reserve?


    From a cloud standpoint, try this alternate question.  How much do you think an hour of downtime to its reservation and scheduling system would cost United Airlines?


    Do you think that the costs savings are really of any value here?


    seven


     

    Pete Baldwin
    Pete Baldwin
    12/5/2012 | 4:34:04 PM
    re: Cloud Watch: HP to Cut 9,000


    I thought the banking panel, and the reticence toward public clouds, was interesting.  The HP thing had to lead this roundup, obviously, but the discussion of why enterprises and financials don't like the cloud is important. 


    Vendors love to talk about the security question first, since they think they have that one licked, but all the touchy-feely business process issues are just as big an impediment. Not much an equipment vendor or service provider can do about that.

    ^Eagle^
    ^Eagle^
    12/5/2012 | 4:33:57 PM
    re: Cloud Watch: HP to Cut 9,000


    Brook,


    Well said.  Long long time ago, in a universe far away, I used to rep gear like Racal.  One of my clients in San Antonio was USAA.  When they explained to me how much money they lost per minute of network down time, back even 20 years ago, the number was staggering. They always were great customers because of this.  Bought the best of everything, cared more about uptime and throughput and delay and redundancy than they did about price.  Once I understood the reality of their business world and the scale of the monetary value of the transactions they processed, I got it.


    Lol, we might actually know some people in common from all those years way back.


    sailboat

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