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HP, Foxconn work on service provider servers

After seeing a rising percentage of specialist servers starting to appear in analysts' research on server sales,  HP and Foxconn are working on a joint venture deal to create their own class of cloud-optimised servers for 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% AGR from 2013 to 2018).

But in many cases, the requirements of the provider are non-standard, often confidential, as they aim to squeeze more from datacentres. It is not clear how the new class will offer customisation to meet these needs, other than a fast time-to-build, perhaps build-to-order.

Cloud computing requires a new approach to server design that brings together cloud solutions expertise, quick customer response and volume manufacturing, they say. 

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.

“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,” says 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.”

The non-equity joint venture, in the form of a strategic commercial agreement, will take effect on May 1. Details on pricing and availability will be announced at a later date, they say.