HP Servers targets $14 billion business

Infotech Lead America: HP will combine Business Critical Systems (BCS) and HP ISS groups to create — HP Servers — a $14 billion organization.

Headed by Mark Potter, senior vice president and general manager, HP Servers will have HP Moonshot, HP ProLiant servers, HP BladeSystem and HP Integrity platform.

The new organization being created as a part of a major restructuring exercise to bring more revenue and focus across geographies will extend HP’s server leadership across enterprises, small and medium businesses, and government agencies.

Potter, who is currently leading HP Industry Standard Servers (ISS), is expected to increase the speed of transformation of the server industry and drive profitable growth. HP faces tough competition from Oracle and IBM in the server market.

Server market share report for Q4 2012

IBM leads the global server market based on revenue share in Q3 2012, according to Gartner, while IDC said HP is the number one player based on shipments.

IBM has 28.7 percent factory revenue share. IBM posted 7.6 percent decline in factory revenue losing 1.1 points of share in Q4 on soft demand for System z ahead of a recently announced product transition. HP has 27.3 percent factory revenue share following an 11.9 percent year-over-year revenue decline.

As part of the restructuring, HP also created another new organization — HP Converged Systems — to focus on accelerating of Converged Infrastructure. This new unit brings together dedicated resources to deliver purpose-built technology for social, cloud, mobile and big data solutions.

Headed by Tom Joyce, senior vice president and general manager, Converged Systems, HP, the HP Converged Systems business unit will have appliance systems for Apache Hadoop, HP Vertica, SAP HANA and HP CloudSystem.

Dave Donatelli, executive vice president and general manager, HP Enterprise Group, said: “HP was the first to announce Converged Infrastructure, which each major technology company has since followed. Today’s organizational updates are the next logical step as we accelerate the delivery of game-changing converged systems technology.”

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