HP stumbled mightily in 2011, and it had nothing to do with product or people. Even sales remained strong, though the PC business is changing. HP’s mighty stumble was a crisis of confidence due to a chain of shenanigans at the very top. This culminated with the short reign of LÃ©o Apotheker, leaving HP to reassure the market of its strategy.
Today is the (a?) day of reckoning in the 3Par saga, with Dell widely expected to make a counter-offer higher than HP’s bid. But this mega deal, like the Data Domain war before it, sends a strong signal to the enterprise IT world: It’s open season on data storage companies! But the rising superpowers are also likely looking at networking as an area of expansion. The game is afoot!
After years spent focusing on personal technology, businesses are increasingly turning back to the enterprise. The corporate IT market is much more dynamic and competitive, with a few very large “superpower” companies discovering their power to drive purchasing decisions. If a supplier can create an integrated “stack” of hardware and software, they can push product purchases that might otherwise be overlooked or postponed. This is the main reason that enterprise IT acquisitions work so well: Where a small company must fight to sell their product, a large one can hitch it to a much more strategic sale and have it pulled along.
Shakespeare said it best in Hamlet: “For ’tis the sport to have the enginer / Hoist with his owne petard.” Thus it is with Mark Hurd, hoisted by his own petard; ousted by his own rules. Shocked by his abrupt resignation, many speculated that some juicy scandal was hidden underneath. But the news since Friday has left observers scratching their heads: could the CEO of one of the largest companies in the world really have been brought down for lying about his dinner companions?
This week’s Tech Field Day roundtable discussion is an audio chat on the subject of stack wars – the creation of all-in-one “stacks” of IT equipment by the major vendors. These stacks have been quite a hot topic of discussion both inside Gestalt IT and in the community as a whole.
I haven’t got any idea what Brocade is going to do next. Why would I buy their products when I can’t see the future?
Just as public cloud computing is beginning to catch on, the enterprise data center world has been shaken up by the biggest IT product vendors. Rather than sit back and watch their wares commoditized, companies like Cisco, EMC, HP, and now HDS are stepping up to the plate with integrated “stacks” that include server, storage, networking, and management software. The next-layer players, VMware and Microsoft in particular, are joining hands, too, eager to support these stacks. To paraphrase the wise Jedi master, Yoda, “cloudy, the future is.” So, the stack wars have begun!
Silicon Angle claims that Cisco is dumping HP as a partner and it makes sense. After all, HP and Cisco have been trading blows for the last two years and progressively escalating the war. Once the Acadia / VCE project was announced, it was clear where Cisco is planning to go.