HP to Invest in Cloud, Cut Jobs

Big news from Hewlett-Packard today – with huge ramifications for the cloud.

The company said that it would invest $9 billion in automating its data centers and other parts of its Enterprise Services business, in the process cutting 9,000 jobs over the course of several years.  But in the same breath, HP declared a heavy focus on cloud computing as its future.

In a conference call to reporters, HP’s executive vice president of enterprise business Ann Livermore said the company will be increasingly focusing on inventing ways to automate services for customers, predicting that the “next 10 years are going to be about who can automate the delivery of services.”

Livermore said that HP will “push very hard to have a management position in the cloud as well as a management position in on-premise,” later adding that the “cloud aspects of [the restructuring] are important.” With no details given, HP said it will invest in its Desktop as a Service offerings.

According to a Wall Street Journal report, HP will also hire 6,000 new workers for its sales force and global delivery centers.

Even though technology giants are trying to become one-stop shops (for consumers and businesses to buy both IT hardware, software and services), HP’s core PC business is still its anchor.  In HP’s latest quarter, profits rose as shipments of PCs climbed on growing consumer demand.

Personally, I’m sorry that 9,000 jobs have to go, but automating services continues to be the wave of the future. And, while HP didn’t specify just exactly how it will transform cloud services, its “Everything as a Service” vision includes development of an enterprise cloud software platform called Cirious.

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