IBM and HP fight over EMC's scraps in Q1
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Internal disk eats away at DAS IBM and HP are neck-and-neck for the second place position in the external disk storage market but remain well behind EMC for top billing, according to the latest report by research house IDC.â¦
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Speculation surrounding the sale of part of the IT company IBM today intensified as the Lenovo Group, China&#39;s leading PC brand, said negotiations with another manufacturer were at an &quot;advanced stage&quot;.
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(InfoWorld) - Despite the turnaround Mark Hurd has engineered at Hewlett-Packard, the president, chairman, andÂ CEO of the technology giant remains unsatisfied. Hurd said at a Morgan Stanley Technology Conference on Monday in San Francisco that the company still has to reduce its cost structure in order to be more profitable and grow. By many measures, HP is successful. It edged past rival IBMÂ in 2006 revenue ($91.7 billion to IBM's $91.42 billion), improved its net income by 158 percent over 2005 to $6.2 billion, and is the industry leader in personal computer and blade server sales. "But on an absolute basis, we're not doing well," Hurd said. Although HP has been on a two-year campaign of cost reduction, including employee layoffs, those savings are still not completely reflected in HP's profit and loss statement, he said. "I don't think that we've gotten very good traction with the investment base understanding that these are efforts that require time," Hurd said. "It will take us all of the next two years to be able to take advantage of that." In an interview before a room full of Morgan Stanley investors, Hurd said the total available worldwide market for the computers, servers, printers, and information technology services HP offers is $1.2 trillion, but that HP still doesn't cover that market effectively. He said the company needs to add to its sales force and develop more partnerships with other companies to better reach customers. Hurd acknowledged, as he did in the company's earnings conference call Feb. 20, that HP's storage business was weak. It grew only 6 percent in HP's fiscal first quarter, which he attributed to the fact that much of its product line is tape storage, a declining business. However, sales of its EVA line of disk storage products grew 18 percent in the quarter. As for server sales, while they grew 10 percent overall, sales of blade servers jumped 45 percent in the quarter, and the Integrity line of high-end servers grew by 75 percent. To further control costs, HP last month offered employees an early retirement opportunity and said it would change from a pension plan to a 401(k) plan, although employees currently in a pension plan will still receive their pensions. While that is expected to trim payroll costs, Hurd said other costs, such as services delivery, real estate, and procurement, still have to be tightened. Hurd was one of scores of technology company executives speaking at the technology conference that runs through Wednesday.
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(InfoWorld) - Hewlett-Packard (HP) is strengthening ties to Microsoft to provide a broadened portfolio of business software products to the enterprise market, delivering a competitive blow to rival IBM. Announced Wednesday, HP and Microsoft's joint $300-million, three-year investment to sell five different types of enterprise technology includes: -- Messaging and unified communications, including e-mail, instant messaging and video conferencing; -- Collaboration and content management, software that allows geographically-dispersed employees to collaborate on text, database, video and other files; -- Business intelligence, the analysis of data to help drive business decisions; -- Business process integration, which refers to the different processes enterprises use to run their businesses; -- and core infrastructure, the management of an enterprise's computer systems. The collaboration will generate 30 new products and services in the next year to 20,000 shared customers of the two companies. "Our customers, when they are looking for these solutions, are eager for what it brings to them, but they also want it at a very attractive cost," said Ann Livermore, executive vice president of the Technology Solutions Group at HP, during a news conference. Although HP, a maker of computers, servers and storage products, and Microsoft, a maker of operating systems and application software, have partnered for more than 20 years, the scale of this announcement makes it unique, said Livermore. "It pools Microsoft's whole portfolio to the enterprise and our whole portfolio...and that puts us in just a tremendous position." "Customers want to hear: how can IT advance the business? How can IT drive value in the business? That's the nature of these five solutions that we have," said Kevin Turner, chief operating officer of Microsoft. The combined market for business intelligence, collaboration, content management and infrastructure software is estimated at $49 billion in 2007 and the market for communications hardware and services is estimated approximately $60 billion, said John Gantz, chief research officer with IDC. The HP-Microsoft deal gives both companies leverage over their joint rival, IBM, which also sells hardware and software to enterprises, said Rob Enderle, principal analyst with Enderle Group, a technology consulting firm. Although IBM hardware also runs Microsoft software, Microsoft is getting closer to HP, he said. "Microsoft now views IBM as much more of a competitor going forward than a partner and it looks like they are shifting their attention away from IBM services and toward HP's," said Enderle. HP is expected to surpass IBM in revenue this year. HP had $91.7 billion in its fiscal year, ended Oct. 31, while IBM is expected to end its year on Dec. 31 with $90.72 billion, according to a consensus from analysts polled by Thomson Financial. "With HP now moving ahead of IBM, I think Microsoft feels comfortable partnering with HP more aggressively," Enderle said. Current enterprise-level collaborations include HP support of Microsoft's new Office 2007 suite of business software and Exchange Server 2007 for data centers. HP provides technical briefings and proof-of-concept testing to customers and partners that are considering deploying Windows-based technology in their enterprises. HP is also a Microsoft Gold Certified Partner for Learning Solutions, providing technical training on Microsoft systems at HP offices globally.
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Over the past year, EMC Corp. has added a little more than 400 employees to its Massachusetts workforce. The Hopkinton-based data-storage company expects to add still more in the coming year.
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Today, IBM (NYSE: IBM) announced the launch of China's first Energy Competency Center (ECC), a joint effort by IBM and Intel, at a press conference at the IBM China Business Innovation Center (CBIC), located in the Beijing Shangdi Information Industry Base.
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Looking to extend its RSA division's authentication product line, EMC has purchased identity verification services vendor Verid.ADVERTISEMENTIBM Information On Demand 2006Industrial Industry Leaders, please join us at IBM's premier information management global event, IBM Information On Demand 2006, October 15-20, Anaheim, CA. More IBM business and technical solutions content in one place than ever before! Select from  over 800 sessions. Register today!
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IBM and a Virginia company are fighting over who's to blame for damage to a server that fell off a pallet while being transported by a forklift.
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In the wake of Hewlett-Packard (NYSE: HPQ) dustup, Mark Hurd's focus on bottom line performance is still likely to improve business prospects, New York research firm Vault has found in new HP employee surveys published today. The surveys can be accessed on Vault.com.
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I believe that investors no longer see EMC dominating the storage market. That's a good thing-in a way, even for EMC.
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EMC Corp. , the world's  largest data storage maker, had the fastest revenue growth  among industry majors in the third quarter while  Hewlett-Packard Co.  decelerated, market researcher IDC  said on Thursday.
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(InfoWorld) - IBM earns bragging rights for surpassing Hewlett-PackardÂ in 2006 storage hardware sales, though it still trails industry leader EMC, according to an industry report published Tuesday. IBM's market share in the global external-controller disk storage market, based on revenue, grew to 15.8 percent in 2006, from 14.5 percent in 2005, while HP's share dropped to 13.1 percent from 14.7 percent. That elevates IBM to second place behind storage market share leader EMC Corp., which grew its market share to 24.8 percent last year from 23.4 percent in 2005. "I think the records will reflect that it's been about 10 years since we passed HP," said Andy Monshaw, general manager of IBM storage. As recently as five years ago, HP had a 15-point storage market share lead over IBM. Monshaw credited a refreshed product line, a focus on selling systems rather than individual products and increased selling to the small-to-medium business market for IBM's results. HP Chairman, CEO, and President Mark HurdÂ acknowledged the weaknessÂ in his company's storage business during a presentation at a Morgan Stanley Technology Conference Monday. HP's storage revenue grew only 3 percent in its fiscal first quarter, ended Jan. 31, which Hurd attributed to the fact that much of its product line is tape storage, a declining business. However, sales of its EVA line of disk storage products grew 18 percent in the quarter. Hurd also said duringÂ the company's quarterly earnings reportÂ Feb. 20, that HP needs toÂ expand its storage sales force. "We just don't cover enough accounts," Hurd said. The rest of the storage sellers in the Gartner report, ranked by 2006 market share, are the following: Hitachi Data Systems, 9.6 percent; Dell, 7.6 percent; Network Appliance, 7.2 percent; and Sun Microsystems, 6.1 percent. Gartner noted that the storage market is increasingly dominated by the top players and is driven by industry consolidation, more effective marketing and strong channel partnerships. The top seven storage vendors accounted for 84.2 percent of the market in 2006, up from 81. 5 percent in 2006.
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Ziff Davis - HP is working with software makers to create bundles of their most popular small- and midsize-business applications preinstalled on HP systems, while IBM is bringing its Power 5 design to the SMB segment through its Express architecture.
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IBM (Quote, Chart) continued to apply pressure to rival EMC (Quote, Chart) on the virtualization front with products that help customers improve how they shuttle data throughout different storage systems.
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- Data storage company EMC Corp.'s  subsidiary, VMware, said it expects its initial public offering to be priced between $23 and $25 per share.
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Stung by its loss of market share to Hopkinton's EMC Corp. , IBM Corp. fought back yesterday with a pair of major new data storage offerings, including one that occupies less than one-twentieth as much space as EMC's rival Clariion storage system.
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InfoWorld - IBM earns bragging rights for surpassing Hewlett-Packard&#160;in 2006 storage hardware sales, though it still trails industry leader EMC, according to an industry report published Tuesday.