Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Networking

    HP Scrambles for Footing with AlphaServers

    Written by

    Jeff Burt
    Published August 16, 2004
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Hewlett-Packard Co., while moving swiftly forward with many of its business lines since its historic acquisition of Compaq Computer Corp. two years ago, is scrambling to gain footing with one unit that ships a legacy Compaq product, Alpha-based servers.

      While overall revenues for the Palo Alto, Calif., company grew 9 percent in its third fiscal quarter ended July 31, sales for its Business Critical Systems unit, which includes Alpha- and PA-RISC-based servers, declined 8 percent, said HP Chairman and CEO Carly Fiorina, who announced the financial results in a conference call with analysts and the media last Thursday.

      The news shook the senior ranks at HP, which views such high-margin servers as entry points for a host of related peripheral products and services. Issuing its earnings report a week earlier than expected, the company announced a third-quarter net of $586 million, or 19 cents per share, missing analysts estimates of 31 cents per share.

      /zimages/1/28571.gifClick here for more on HPs Q3 performance.

      “Although we are satisfied with our performance in Personal Systems, Imaging and Printing, Software and Services, these solid results were overshadowed by unacceptable performance in Enterprise Servers and Storage. Here, execution issues cost us and we are therefore making immediate management changes,” Fiorina said in a conference call. “With these changes, we expect our server and storage business to return to profitability in the fourth quarter.”

      Several hours later, Fiorina announced an overhaul of the management of the companys Customer Solutions Group, a unified sales force responsible for all accounts. As part of the reorganization, longtime Compaq executive Peter Blackmore was ousted as executive vice president of CSG and replaced by another former Compaq exec, Michael Winkler, who retains his duties as HPs chief marketing officer. Jack Novia, who was senior vice president and general manager of the Technology Solutions Group, replaced Jim Milton as senior vice president and managing director for the Americas region of CSG.

      But these moves are only the latest to try to revive HPs enterprise server business. In May, HP folded its enterprise systems and storage under the same umbrella as its services and software, calling it the Technology Solutions Group and putting veteran Ann Livermore in charge.

      Under the direction of Livermore, the new divisions executive vice president, HP is working to turn the tide by bolstering initiatives to transition from Alpha and PA-RISC and standardize its high-end systems on Intel Corp.s 64-bit Itanium architecture and find synergies among its wide range of products.

      “Were already seeing several benefits in our strategy to bring to customers solutions that are more integrated, such as servers with storage attached or servers with customer support attached,” Livermore said.

      Next Page: HP World unveilings.

      Page 2

      The company will unveil the latest fruits of this work at this weeks HP World user conference in Chicago. HP Services Chief Technology Officer Tony Redmond, for instance, will discuss how HP is field-testing a security scanning technology developed by HP Labs. The technology will operate across an enterprises IT infrastructure, looking for security vulnerabilities and downloading appropriate remediation patches.

      HP will also offer more details on its road map for nudging users of its Alpha servers and HP9000-series servers, which are powered by the companys PA-RISC architecture, toward Integrity systems. HP plans to release its last Alpha chip this week and the last PA-RISC chip next year.

      As a result, it is pumping out tools and services designed not only to help customers migrate to its Itanium-based Integrity servers but also to entice Unix customers from other companies—in particular, IBM and Sun Microsystems Inc.

      “Weve developed some tools that enable us to do a Solaris migration to Linux or HP-UX in an expedited manner. We also have tools in the mainframe-attack program because IBM is readying a forklift upgrade [with its Power5 systems],” Livermore said in an interview with eWEEK.

      /zimages/1/28571.gifRead eWEEKs interview with HPs Ann Livermore.

      Competitors see HPs Itanium move as a chance to scoop up HP customers. Sun this week will announce it is expanding its HP Away program, which lures AlphaServer customers to Suns SPARC/ Solaris architecture. The Santa Clara, Calif., company will extend HP Away to include the Latin American and Asian regions and will target HP-UX customers, officials said.

      Ron Hinsley, vice president of IT for Aquila Inc., said that after evaluating Unix-based systems from IBM and Sun, his company moved much of its back-office operation from an IBM mainframe to two PA-RISC-based systems from HP. Hinsley said that he felt comfortable with HPs support and services and that he also liked that should Aquila move toward Linux down the road, running an HP system would make for an easy transition.

      “I was pretty much looking for what was successful right now,” said Hinsley in Kansas City, Mo. “Ive been around long enough that I knew [that Itanium systems] would work. I really have to be concerned with whats out there now.”

      Meanwhile, HP continues to unveil technology and services designed to align Alpha and PA-RISC systems more closely with the Itanium.

      At HP World, the company will announce that, with an enhancement due in October, its HP-UX 11i Version 2 operating system will run on both the Itanium and PA-RISC platforms. Having a common operating system will enable PA-RISC users to introduce Itanium systems into their data centers more easily.

      /zimages/1/28571.gifCheck out eWEEK.coms Infrastructure Center at http://infrastructure.eweek.com for the latest news, views and analysis on servers, switches and networking protocols for the enterprise and small businesses.

      Jeff Burt
      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×