HP, Foxconn in a JV pact to create a new cloud based servers biz

Written by FE Online | Bangalore | Updated: May 1 2014, 23:48pm hrs
HandshakeUnder the joint venture, Foxconn will utilize its core ability to deliver superior value throughout the supply chain. Thinkstock
Tech giant Hewlett Packard (HP) and Foxconn today announced a joint venture agreement to create a new line of cloud-optimized servers specifically targeting service providers.

The non-equity joint venture, which is a strategic commercial pact comes into effect from May 1, however details on pricing and availability are expected to be announced at a later date.

This announcement comes at a time when the cloud computing needs are changing with a new approach towards server design that allows cloud solutions expertise, prompt customer response and volume manufacturing all come together.

This has led HP and Foxconn come together through a joint venture to address a new business area of cloud optimized servers focused on service providers.

Under the joint venture, Foxconn will utilize its core ability to deliver superior value throughout the supply chain, while HP through its strong hold in compute, service and support, will deliver new computing platforms by bringing high-density, easy-to-manage, cost-competitive solutions to market.

The new product line will specifically address compute requirements of the worlds largest service providers by delivering low total cost of ownership (TCO), scale, and service and support. The line will complement HPs 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, added Whitman.

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 HPs server leadership, we are embracing this new opportunity to change the industry, capture growth in this emerging market, and deliver end-to-end value as we expand our global leadership in design and manufacturing,added Gou.

According to IDC, service providers will continue to break new ground in search of both performance gains and cost reductions as they expand their cloud architecture implementations.

Additionally, the hosting-as-a-service model will continue to transition away from traditional models toward cloud-based delivery mechanisms like infrastructure as a service, spurring hyperscale growth in servers used for hosting (15 to 20 percent CAGR from 2013 to 2018).