It has only been a few days since HP decided to curtail its reselling agreement with Violin Memory to concentrate on its own 3PAR product. Big-mouthed bankers also had plenty to say on the move as it pertained to a rumoured IPO by Violin. But El Reg has since heard a bit of inside information from various players close to the …
One HP division slashing at the legs of another HP division... internal competition like that is what keeps them nimble, dominating the market, and steadily increasing their stock price.
Internal competition is what drives a company into the ground, much like Apple did with its Macintosh vs everyone else nonsense.
It was only when they scrapped that stuff and focussed on a consistent approach to their technologies that they grew.
Is this news ? I thought it was common knowledge BCS were selling this but only in very specific niche environments, typically where it wouldn't be easy to go with traditional storage. It being only sold as part of a BCS led sale, so in reality there would be very little internal overlap.
HP is trying to sell Violin into my firm right now, a straight storage play, no BCS system required by us. Violin have aleady punted us a solution -- and predictably they ain't impressed with this intervention by their "partner". Whatever happens we'll pay less for a kick-ass solution, so long may the spat continue.
I agree. There was scepticism to begin with that the server guys were the only people selling a storage product, but the specificity of the target market (and the fact that barely any were sold) meant that it was a complete non-issue. Gary poached a couple of the good techies, but they've started to come back now.
I heard one big issue in the r'ship was that Violin encouraged HP to buy a load of the 3000 stock to help their numbers for the IPO, and then announced the 6000!
Bait & Switch
I heard Violin wanted HP and partners to provide the inroads, but were more than happy to try a direct sell if they thought the deal wasn't going their way. Sounds a bit like what some of the other Vendors used to do with with their own channel partners:-)
Re: Bait & Switch
Makes sense, that is generally how these rebrand or resell relationships work. Both sides ask the other to bring them into their accounts. They both decide they would rather not and the area of partnership becomes very small.
Been hearing this out in the Channel now for a while. The only "major" deal one of their key UK channel partners has closed is indeed a deal that was gifted to the partner purely as fulfillment and paper pushing.
The internal Battle of BCS vs ESSN inside HP is also very similar to another internal political battle... of the "new" 3PAR boys vs the "old" StorageWorks/EVA boys, which is also rife at this time.
Being very familiar with the situation ;-), I can tell you there is no "political battle" and any dust that was kicked up by the acquisition was settled well over a year ago.
Yes, in the sense that 3PAR has already won that battle (basically the day HP decided to pay $3.5 billion for a $200 million storage company) and EVA has been put out to pasture with the rest of DEC. XP/Hitachi rebrand is over as well. HP is only keeping XP around to give them more time to try to convince existing customers of the value of 3PAR. If I were at HDS, which I am not, I would be going into every XP account and trying to flip them to VSP knowing that HP is trying to flip them as well. It is fine if that is what HP wants to do, they should just be honest about it instead of telling people that XP will be around because they need the mainframe connectivity.... for both of those mainframe shops that use HP storage.
Actually it was $2.4 Billion and the XP situstion is no where near as cynical as you suggest, XP is still high margin business, especially around services, 3PAR provides higher margin on tin but requires fewer services. From a HP perspective XP is just another tool in the kit bag. Do you believe HDS haven't always done this anyway? The difference is HP now have more than a me too solution in 3PAR, as such HDS are having a hard time flipping customers.
Utter FUD - even recently HP was selling more Hitachi gear than HDS was. HDS are doing some very crazy things and still losing more than their fair share to HP!
EVA is clearly less of a focus for HP than it was but existing EVA customers can still invest in that platform or migrate VERY easily to 3PAR.
One correction: Gary Veale was not 'hated at all levels of HP'. While he was at HP, he worked very hard to make the storage business a success. When he left, many people, including myself, wished him well.
HP had a walk-on part in the Violin story, which they and others seem intent on bigging up.
Meanwhile, other anonymous commentators are way off the mark in crucial aspects... so much so that they can only be driven by agenda, rumour and wishful thinking, rather than facts or actual knowledge.
Re: Sour grapes?
Says the AC :-) not sure there's any sour grapes involved at least from HP's side, with 3PAR they have an inhouse product with a more complete feature set so why not leverage that going forward. For joint Customers they'll receive the HP minimum 5 year support guarantee and Violin will continue to profit from upgrades and have the Customer details so can attempt to flip them at any point.