HP: Integrity to represent 75% of server sales
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[March 21, 2006]

HP: Integrity to represent 75% of server sales

(BNamericas.com Via Thomson Dialog NewsEdge)US IT giant Hewlett-Packard (NYSE: HPQ) aims for 75% of its server sales to come from units based on its Integrity platform by year-end, compared to 45% today, Alfredo Yepez, HP Latin America and Caribbean business critical systems manager, told BNamericas.



HP's business critical systems division manages sales of critical mission servers, including HP9000 (PA RISC), Alpha and Integrity. In this market, the most important players are IBM, Sun and HP, which hold a combined 45-46% market share.

"This share includes the three current product lines, PA RISC, Alpha and Integrity, but we aim to migrate all this HP technology to the Integrity platform. So we will maintain that 45-46% market share in the region but it will all represent Integrity sales," Yepez said.



During 2000 and 2001 HP announced plans to promote the Integrity platform, based in Itanium processors, but only in the past two years has the company invested to accelerate the adoption of this technology.

"In the past two years we have seen the adoption of this technology speed up, and there are now 7,500 applications designed for these products, such as Oracle, SAP and Sybase solutions," he added.

In order to help with this migration, HP has set aside US$18mn to migrate its Latin American client base for mission critical servers to the Integrity platform, with investments of US$6mn a year for 2005, 2006 and 2007.

According to Yepez, part of this investment goes to strengthening HP's relationship with local software developers, with the aim of having them develop special applications based on the Integrity platform for specific niches. "This way we are trying to cover the largest and smallest industries from a local point of view," he said.

Commenting on sales methods for the Integrity platform, Yepez said this is a value added line, so there is a specific group of distributors, called Enterprise channels, with special agreements for distribution.

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