HP is In the Game. Now What?

After a 6 month wait, Hewlett-Packard will announce the general availability of its OpenStack compute cloud this week.  So, should Amazon, Google, and Rackspace be worried?

The word on the street is that HP is too late, too far behind, and too big and cumbersome to make that much of a dent in the emerging cloud computing market.  However, most of the Global 2000 is still up for grabs, given that Amazon Web Services, the biggest fish in the IaaS pond right now, is only able to claim a 30 percent share of the larger enterprises.

HP has a huge reach in big enterprises, and those guys purchase hardware, software, and, yes, cloud computing services, differently than smaller organizations.  HP’s sales people have deep connections into blue chip industries that Amazon can only dream about.

So, I would say its on.  Now that HP is out there, this space gets even more interesting.  HP has some strengths that they can leverage to quickly penetrate the market.  But, Amazon is still the one to beat.  They have a huge market share and, more importantly, mind share.  HP needs to understand that this is their only bite at the apple.

 

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David S. Linthicum

SVP Cloud Technology Partners

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3 Comments Subscribers to comment
  1. David,

    It’s a bit surprising to me that AWS would only have 30% public cloud IaaS market share in the enterprise today. What other vendors would the other 70% be enterprises be using today? Fully realize that AWS has some work to in the enterprise market, just not clear what other options they would be turning to today for public IaaS…

    Scott

    1. Hi Scott,

      I believe that is a percentage of enterprises using AWS out of the total number of Global 2000 enterprises.

      Dave

  2. Dave,

    Got it – thanks for the clarification. So for Global 2000 enterprises that are in fact using public cloud IaaS today, what % of the overall spend do you think AWS is capturing? I would think that number is actually 70-80% (or even higher)…

    Scott

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