Design Firm Acquisition Is Key to New Services

 
 
By Chris Preimesberger  |  Posted 2008-11-03 Email Print this article Print
 
 
 
 
 
 
 


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 A lot of them were built in the late '90s for the Internet boom, and now those are way outdated-especially when it comes to conserving power," Croce said.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."




 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 
 

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