Design Firm Acquisition Is Key to New Services
HP's new package is based largely on the $200 million acquisition data
center designer EYP Mission Critical Facilities earlier this year.
Since last winter, Hewlett-Packard has been building its own in-house, all-purpose build-a-data center capability.
EYP Mission Critical Facilities, based in Los Angeles, was a well-established, privately held company providing data center consulting services.
HP also acquired outsourcing giant EDS, the purchase of which set back HP's cash savings about $14 billion, in 2008. That acquisition boosted HP's stake in the consolidated services market against world leader IBM.
Both EYP and EDS have helped boost HP's goal of trying to become a full-service, "one-stop shop" data center builder for any business -- Web-based or otherwise.
EDS, with 139,000 employees, was the world pure-play leader in outsourced IT services, with a current market cap of around $10.5 billion. HP dabbled a little in outsourced services in the past, but now it's really on the map in that market.
"The key to both transactions was that each of the new additions brings industry credibility that could not be obtained in any other way," Validus DC Systems Chief Operating Officer Ron Croce, a longtime industry observer, told eWEEK. Validus is a startup specializing in DC power distribution.
"Both of those companies [EDS and EYP] are well respected in their sectors. HP has great credibility on its own but it didn't have the expertise in these areas that these two established companies bring to the table. If you're a CIO looking to invest a lot of money in a new-generation data center, you tend to look to the best in the field to help you," Croce said.
A lot of new data center construction is in the offing, Croce said.
"Data centers generally run in 10-year cycles. A lot of them were built in the late '90s for the Internet boom, and now those are way outdated-especially when it comes to conserving power," Croce said.
"It's very expensive to renovate the old ones ... much of the time, it's better and more cost-effective just to build new ones, using the new, power-efficient systems."