Enterprise networking vendor HP today announced a non-equity joint venture with Foxconn to create new cloud-optimized servers — targeting service providers.
They will focus on tapping the server market in emerging markets. The main thrust will be to make cost effective servers. Recently, Lenovo acquired low-end server business from Microsoft.
The new initiative will gain from Foxconn’s ability to deliver value throughout its supply chain, manufacturing and design capabilities, and HP’s service and support. They will jointly bring computing platforms which are high-density, easy-to-manage, cost-competitive for the server market.
The new product line will specifically address compute requirements of the world’s largest service providers by delivering low total cost of ownership (TCO), scale, and service and support. The line will complement HP’s existing ProLiant server portfolio, including Moonshot.
IT market research agency IDC said 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 growth of 15 to 20 percent CAGR from 2013 to 2018 in servers used for hosting.
Meg Whitman, president and chief executive officer, HP, said: “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.”