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HP and Foxconn to target service providers
HP and Foxconn has entered into a joint venture agreement to create a new line of cloud-optimized servers specifically targeting service providers.
According to IDC, service providers will continue to break new ground in search of both performance gains and cost reductions as they expand their cloud architecture implementations. Additionally, the hosting-as-a-service model will continue to transition away from traditional models toward cloud-based delivery mechanisms like infrastructure as a service, spurring hyperscale growth in servers used for hosting (15 to 20 percent CAGR from 2013 to 2018).(1) The changing needs of cloud computing require a new approach to server design that brings together cloud solutions expertise, quick customer response and volume manufacturing. “With the relentless demands for compute capabilities, customers and partners are rapidly moving to a New Style of IT that requires focused, scalable and high-volume system designs,” said Meg Whitman, president and chief executive officer, HP. “This partnership reflects business model innovation in our server business, where the high-volume design and manufacturing expertise of Foxconn, combined with the compute and service leadership of HP, will enable us to deliver a game-changing offering in infrastructure economics.” “Cloud computing is radically changing the entire supply chain for the server market as customers place new demands on the breadth of design capability, value-oriented solutions and large-scale and global manufacturing capabilities,” said Terry Gou, founder and chairman, Foxconn. “In partnership with HP’s server leadership, we are embracing this new opportunity to change the industry, capture growth in this emerging market, and deliver end-to-end value as we expand our global leadership in design and manufacturing.”