HP makes a $1B OpenStack bet

Hewlett-Packard is betting its future on the cloud with a commitment to invest more than a billion dollars in software-based solutions that have the potential to replace HP servers and other hardware. Like many other network hardware companies, HP realizes that its customers are increasingly interested in remote data centers and software solutions. Cloud computing can reduce capital expenditures, and can offer solutions that scale more quickly and adapt more readily to changing technologies.
Investing in software that may someday replace their hardware is seen by many infrastructure companies as a necessary risk, but HP is taking a bolder stance than most. The company says its investment will focus on OpenStack, a free, open-source resource that can be used in place of licensed software.
HP calls its solution HP Helion and says it will focus on enabling companies to manage hybrid IT environments. HP Helion will incorporate OpenStack with existing HP cloud offerings. The company says it is sold on OpenStack after running large-scale OpenStack solutions in enterprises for three years.
Starting immediately, HP is making a free “community edition” of OpenStack available for proofs of concept, pilots and basic production workloads. The company promises an enhanced edition later this year, tailored for the needs of service providers.
HP has been targeting the service provider community with software solutions for some time. The company launched an NFV (network functions virtualization) solution at Mobile World Congress this year, focusing on software’s ability to help carriers bring new services to market faster.
“NFV represents one of the most significant shifts the telecommunications industry has experienced in 20 years,” said Martin Fink, executive vice president and chief technology officer, HP. The company has assigned Bethany Mayer to spearhead its NFV strategy. Mayer is SVP and GM at HP Networking.
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