Sun Strategy Makes HP Blink
Oct. 06, 2003 - It was reported last week that HP is offering customers $25,000 to
move off Sun platforms to HP Linux. However, HP's initiative appears to be
no more than a PR campaign - they are NOT offering customers $25,000.
The truth is, HP is actually offering customers in America free
assessment/migration services and the use of HP systems based on
"standard" technology for 30 days. This offer appears to have little
substance, no real money and no value proposition.
HP's Enterprise Systems Division continues to lose money at an
increasing rate and creating the illusion of buying business at $25,000
a pop is not
going to help improve its bottom line. In addition, HP's focus today is
clearly
on PCs, printers and consumer products.
HP's offer is exclusively tied to Linux which questions its commitment
to HP-UX and Itanium-2, so its installed base should be very concerned.
For those Sun customers wanting a Linux solution, Sun offers the same
industry standard Linux OSes as HP, but at lower cost--making it the
most cost-effective Linux x86 solution available today. As a result, in
the most recent market share numbers for the 4-way rack server space
(all OSes), Sun passed HP.
Meanwhile, Sun's HP Away program is having a real affect on HP. Since
its launch
in July, Sun reached its first year target of migrating 40 HP customers
to Sun platforms within 45 days.
"Sun's HP Away is a substantial program with a real value proposition to
solve the problems, issues, and headaches caused by HP abandoning its
installed base," said Larry Singer, Sun's senior vice president, global
market strategies. "This is a last ditch effort by HP to show they are
still serious about the enterprise, and not just a consumer products
company."
For more information about HP Away go to: www.sun.com/tru64migration
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