File Virtualization

Back in May, Hewlett Packard agreed to acquire Electronic Data Systems (EDS) for nearly $14 billion. Enabling HP to catch up quickly with IBM in virtual computing represented key element in the transaction, the company has been quick to expand its offerings in the area.

As pure hardware solutions become a commodity business, HP recognizes that its primary advantage is in providing implementation consulting, especially for firms who are looking to scale large systems. HP has developed a number of business automation tools which run directly on server platforms, enabling them to compete with the likes of SAP, as well. While the company had traditionally been at a cost disadvantage to more focused firms such as IBM (at least since IBM shed their hardware division earlier this decade by way of Lenovo), their foray into virtual computing has enabled them to work with open-source vendors to create cost-effective solutions for corporate environments.

Just a few months ago, the company announced an entire suite of enterprise level server solutions that are directly aimed at the growing virtual IT market. As part of these efforts, the company has launched a series of thin client desktops which are designed as virtual terminals, lowering hardware costs, as well as allowing for improved licensing rates with software vendors (since contracts can be configured on demand.) While a number of firms continue to compete for ground in the space, HP has entered into a long-term alliance with VMWare to provide integrated solutions to corporate clients, leaving Citrix and Microsoft to pair up in what should be the next big growth phase for IT.