13 Comments

Summary:

Hewlett-Packard said today that it would cut 9,000 jobs and take a $1 billion restructuring charge spread out through Oct. 2013 as it seeks to automate its data centers so it can deliver enterprise business services, which I read as HP’s transition to delivering cloud computing.

Hewlett-Packard said today that it would cut 9,000 jobs and take a $1 billion restructuring charge, spread out through the end of its 2013 fiscal year, as the company seeks to automate its data centers so it can deliver enterprise business services. HP undertook a big data center consolidation push back in 2006 when it cut the number of data centers to six from 85, but this effort will be tied to automating its external-facing data centers, and appears to be an effort to deliver on HP’s vision of cloud computing. From the SEC filing noting the charge:

As part of this multi-year transformation plan, HP intends to (i) invest in fully automated, standardized, state-of-the-art commercial data centers, (ii) invest to facilitate the migration of client applications to modernized infrastructure platforms, and (iii) consolidate the enterprise services business’s commercial data centers, management platforms, networks, tools and applications.

This reads like HP’s gearing up to offer infrastructure or a platform as a service both for itself and for clients. However, the filing isn’t all bad news. While systems administrators and data center personnel may find themselves on the outs, HP expects to replace 6,000 of the positions eliminated with folks in sales, or what it calls “delivery resources.” And HP expects annualized net savings, after reinvestment in salespeople and other efforts, to be between $500 million and $700 million by its 2013 fiscal year, which ends Oct. 31.

Related GigaOM Pro research (sub req’d): Report: Evolution of The Private Cloud

  1. [...] on my blog that “(you) forgot to let HP know that they’ll be out of a job soon.” Well, turns out they are. HP to slash 9,000 jobs and take a $1 billion dollar hit to do [...]

    Share
  2. loss of 9000 jobs = high tech innovation? cloud computing is a fancy name for job killer.

    Share
  3. @ My Locator: All technology advances tend to eliminate old jobs and create new ones.

    Share
    1. Advances may eliminate some old jobs and create some new ones, but the new ones they create tend to be at a lower skillset level (and hence a lower pay level) than the jobs which were eliminated.

      Share
  4. [...] to a Hewlett-Packard SEC filing (and as reported by GigaOm’s Stacey Higginbotham), HP has decided to eat its own dog food, further consolidating and automating its data center in [...]

    Share
  5. [...] HP is announcing a massive investment and re-launch of their Enterprise strategy. In the announcement HP will invest $1 billion tin the next generation of its Enterprise Services business. [...]

    Share
  6. I didn’t know servers in the cloud ran themselves. That’s amazing!

    Share
  7. [...] loss of 9,000 jobs and a $1 billion charge are being described as the cost of HP’s transition to cloud (see all Techmeme coverage). Alas, I fear this is just the downpayment as cloud computing begins an [...]

    Share

Comments have been disabled for this post