HP Enterprise Boss Rallies Partners To Capitalize On IBM, Dell Uncertainty

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Hewlett-Packard Enterprise Group Executive Vice President Dave Donatelli Monday rallied the company's partners to capitalize on the indecision surrounding the potential sale of IBM's x86 server business and Dell's proposed $24.4 billion leveraged buyout.

"Everybody who works at HP will tell you that certainty is very important in the enterprise," said Donatelli in a solution provider webcast that came just two days before aggressive new HP PartnerOne program changes go into effect in the sales trenches. "We have certainly learned that ourselves. Anytime you have lack of clarity and you have concern about what the future is, it is a great business opportunity. Our strategy is very clear."

With HP's new Moonshot server, software-defined networking product set and 3Par storage solutions heralding a new IT architecture inflection point, Donatelli said the time is right for partners to bring next-generation solutions to customers.


[Related: 10 Hot Money-Making Plays For HP Partners]

"We have a very clear product road map," said Donatelli. "And we think the potential impact here is that we can go get customers who are concerned about the future of their platforms and then sell them our next-generation products."

Neither IBM, in regards to the potential sale of the IBM x86 server business to Lenovo, nor Dell, regarding the leveraged buyout, would comment on the HP partner call for partners to capitalize on the uncertainty.

CRN has reported that IBM's negotiations to sell its x86 server business to Lenovo are "moving quickly" and that the deal could come at any time. IBM is reportedly seeking $5 billion to $6 billion for its x86 server business.

"On the rumored [x86 server business] sale [to Lenovo] at IBM, I think you have players deciding are they going to opt in and play or are they going to opt out?" said Donatelli "You have other players saying 'My business model is very challenged by this change; how do I deal with that business model change?' -- which is what I think is what is happening in the case of Dell."

Dell just last week approved a program authorizing $91 million to be used as cash bonus reward to aid in the retention of Dell employees in the midst of the leveraged buyout.

Donatelli's comments came as HP Monday announced an enterprise group restructuring aimed at accelerating the pace of HP innovation in the server marketplace.

HP on Monday not only created a new business unit to focus exclusively on the big data converged infrastructure opportunity but also merged its two separate server businesses into a $14 billion HP server business group.

Donatelli said the changes are aimed at driving explosive new business opportunities for HP partners playing in the next-generation data center market. He said HP customers are clamoring for next-generation solutions like HP's Moonshot servers, which HP itself is using to run a major part of HP.com.

In HP's case, Donatelli said, the Moonshot server has resulted in 90 percent savings in both data center footprint and power costs for HP, which is running a part of its HP.com website on Moonshot. He said the breakthrough technology amounts to HP running HP.com on the energy equivalent of 12 60-watt light bulbs.

NEXT: HP Partners Say They Are Committed To Selling End To End HP Solutions

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