As many as 20 cloud titans that order servers by the container load are fixed in HP's server team's sights – as a joint venture between contract manufacturer Foxconn and the PC giant begins. The duo's alliance was forged last week: the aim is to give HP a better shot at competing against Taiwanese assembly lines that churn out …
Having delivered servers to the big CSPs, I can tell you this is a very tough market. The CSPs are technically very savvy, and buy in huge volumes, so their cost leverage is strong.
The question here is what HP brings to the table. It isn't support, since the CSPs use limited repai philosophies, and can handle technical issues themselves. It isn't volume buying power, since the CSPs are doing just fine going direct to the ODMs. It isn't technology savvy, since the Googles of the world are so far ahead of "mainstream" design philosophies that they would be teaching HP the business.
This play doesn't make great sense as stated...going after the 20 titans. It makes much more sense for enterprise private clouds and boutique second-tier CSPs or SaaS providers who don't have the skills or leverage to go to the ODMs direct.
Re: Tough competition
Agree, there isn't much they can offer to the Googles, etc. It seems like x86 servers is now a pure commodity market. If you are not the least costly, it isn't going to work out.
"HP-Foxconn " is right
ALL of their kit is made by Foxconn/Hon Hai.
Marks & Spencers trying to enter the fashion trade, by the time HP gets a new model out, it will be old news to the likes of Google, facebook, etc, like M&S they really should stick with what they know, their roots are in the old school and those roots go too deep.
Seems to me that by the point Google or Facebook have finished choosing the details of what they want, from the shape of the rack to the custom CPU, they might as well bypass HP altogether…
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