If you don’t see how the IT world is changing, just follow the recent tectonic shifts: while some tectonic plates merge (see Dell & EMC), others split (see HP split). The big players are assessing their play in this new world of IT where people and companies consume services rather than products, and where businesses run entire operations without owning “stuff” (think about the biggest taxi company not owning a single vehicle…). In this world, the game shifts from selling boxes and licenses to cloud-based services and open-source software and standards. And that’s a shift the big guys are now facing.
In its recent evaluation of the company’s future, HP (soon to be HP Enterprise) realized it cannot compete in the public cloud global arena, and decided to shut down its HP Helion Public Cloud offering on January 31, 2016. This arena is heavily dominated by Amazon, followed by Google and Microsoft, it requires a lot of upfront investment to gain significant global coverage, and it has a fierce war on price and performance.
Instead, HP will focus on hybrid cloud, helping their traditional enterprise customers combine their on-premise data center with different public cloud vendors. This way HP actually plans to partner with the big public cloud vendors. In its recent blog post, Bill Hilf, SVP and GM, HP Cloud, stated that:
To support this new model, we will continue to aggressively grow our partner ecosystem and integrate different public cloud environments.
HP’s strategic choice to focus on hybrid cloud should come as no surprise. With the agenda of bringing hybrid cloud to enterprises HP acquired Stackato 3 months ago from ActiveState. Also, late last year HP acquired open-source software Eucalyptus to “accelerate hybrid cloud adoption in the enterprise“, which paved HP’s way to offering compatibility with Amazon’s AWS cloud. On the Microsoft front HP has been working to support Azure cloud and Office 365 SaaS offering. This may compete with Microsoft’s own hybrid cloud offering announced earlier this year. And Amazon is debating its position on hybrid cloud as well. so these partnerships will be interesting. If formed well, they could lead HP to a true multi-cloud offering.
The big players are all eyeing how to bring hybrid model for the enterprises, where the big money lies, and where complex environments, systems and constraints mandate such hybrid models and enterprise-grade tooling. We’ll also be seeing more use of open-source, such as HP’s adoption of Eucalyptus, CloudFoundry (for PaaS), and OpenStack. In fact, today started the OpenStack Summit in Tokyo, it’d be interesting to hear what HP executives elaborate on the recent and expected moves for Helion.
You can read more on HP’s recent moves around cloud, containers, open-source, HP company split and more on this post.