HP and Foxconn Announce a Joint Venture[/b]
HP and Foxconn announced that the two parties have established a joint venture for the development of servers designed for cloud computing services.
According to the two companies, they signed an agreement to set up a non-equity joint venture on May 1, 2014. Ownership splits and capitalization schedules for the new entity were not released. The two companies said that the new mode of server which is optimized for cloud computing will help cloud computing service providers cut costs. These new cloud computing servers will be manufactured, promoted, and sold by Foxconn; and HP will provide related support. The initial servers will bear the brand of HP and the first batch products are expected to go on sale later this year.
HP and Foxconn have announced a joint venture agreement to create a new line of cloud-optimized servers specifically targeting service providers. The non-equity joint venture, in the form of a strategic commercial agreement, will take effect on May 1. The new product line will specifically address compute requirements of the world’s largest service providers by delivering low total cost of ownership (TCO), scale, and service and support. The line will complement HP’s existing ProLiant server portfolio, including Moonshot. With the relentless demands for compute capabilities, customers and partners are rapidly moving to a new style of IT that requires focused, scalable and high-volume system designs, said Meg Whitman, President and CEO, HP. This partnership reflects business model innovation in our server business, where the high-volume design and manufacturing expertise of Foxconn, combined with the compute and service leadership of HP, will enable us to deliver a game-changing offering in infrastructure economics. According to IDC, with cloud computing gaining adoption, services providers are increasingly looking for compute infrastructure that offer both performance gains and cost reductions as they expand their cloud architecture implementations. IDC expects strong growth in servers used for hosting which it has projected to grow at a CAGR of 20 percent from 2013 to 2018.
Cloud computing is radically changing the entire supply chain for the server market as customers place new demands on the breadth of design capability, value-oriented solutions and large-scale and global manufacturing capabilities, said Terry Gou, Founder and Chairman, Foxconn. In partnership with HP, we are embracing this new opportunity to change the industry, capture growth in the service provider market, and deliver end-to-end value. It's not clear to what degree the HP alliance with Foxconn is part of Whitman's plan, since cloud-optimized servers may have more specialized requirements than the ones in IBM's now-sold unit.
For its part, Foxconn may be targeting competitors in its home base of Taiwan, such as Quanta, which has been making servers for Facebook and Amazon, among others. Foxconn founder and Chairman Terry Gou told news media that customers are placing new demands on the breadth of design capability, value-oriented solutions and large-scale and global manufacturing capabilities, because of the radical changes on the entire supply chain being driven by cloud computing.
HP and Foxconn announced that the two parties have established a joint venture for the development of servers designed for cloud computing services.
According to the two companies, they signed an agreement to set up a non-equity joint venture on May 1, 2014. Ownership splits and capitalization schedules for the new entity were not released. The two companies said that the new mode of server which is optimized for cloud computing will help cloud computing service providers cut costs. These new cloud computing servers will be manufactured, promoted, and sold by Foxconn; and HP will provide related support. The initial servers will bear the brand of HP and the first batch products are expected to go on sale later this year.
HP and Foxconn have announced a joint venture agreement to create a new line of cloud-optimized servers specifically targeting service providers. The non-equity joint venture, in the form of a strategic commercial agreement, will take effect on May 1. The new product line will specifically address compute requirements of the world’s largest service providers by delivering low total cost of ownership (TCO), scale, and service and support. The line will complement HP’s existing ProLiant server portfolio, including Moonshot. With the relentless demands for compute capabilities, customers and partners are rapidly moving to a new style of IT that requires focused, scalable and high-volume system designs, said Meg Whitman, President and CEO, HP. This partnership reflects business model innovation in our server business, where the high-volume design and manufacturing expertise of Foxconn, combined with the compute and service leadership of HP, will enable us to deliver a game-changing offering in infrastructure economics. According to IDC, with cloud computing gaining adoption, services providers are increasingly looking for compute infrastructure that offer both performance gains and cost reductions as they expand their cloud architecture implementations. IDC expects strong growth in servers used for hosting which it has projected to grow at a CAGR of 20 percent from 2013 to 2018.
Cloud computing is radically changing the entire supply chain for the server market as customers place new demands on the breadth of design capability, value-oriented solutions and large-scale and global manufacturing capabilities, said Terry Gou, Founder and Chairman, Foxconn. In partnership with HP, we are embracing this new opportunity to change the industry, capture growth in the service provider market, and deliver end-to-end value. It's not clear to what degree the HP alliance with Foxconn is part of Whitman's plan, since cloud-optimized servers may have more specialized requirements than the ones in IBM's now-sold unit.
For its part, Foxconn may be targeting competitors in its home base of Taiwan, such as Quanta, which has been making servers for Facebook and Amazon, among others. Foxconn founder and Chairman Terry Gou told news media that customers are placing new demands on the breadth of design capability, value-oriented solutions and large-scale and global manufacturing capabilities, because of the radical changes on the entire supply chain being driven by cloud computing.