In a move designed to help both companies better address the market for cloud computing, HP and Microsoft announced a deeper strategic (though not exclusive) relationship. The companies will offer integrated infrastructure-to-application solutions, combining HP servers, storage, and networking hardware and services with Microsoft applications and virtualization and management software (Windows Server, Hyper-V, Exchange, SQL Server, System Center). The companies will make an incremental $250 mn investment in the partnership, and will go to market through both companies’ channels as well as with a dedicated combined sales force.
What are the implications for Cloud Computing? This is not a near-term needle-mover but a longer-term positive for both Microsoft and HP, as the partnership provides both vendors with the ability to sell an integrated stack as a private cloud solution. It helps to position Microsoft more favorably vs. VMware, and bolsters Microsoft’s go-to-market, specifically as it adds the ability to sell Microsoft cloud offerings through HP’s services channel. HP benefits from a new go-to-market channel and incremental services opportunities in Microsoft environments, which should be accretive to HP’s overall margin structure. Cisco’s UCS gets its first rival, which validates Cisco’s vertically integrated approach, but also increases competition. As strategic partnerships take on increased importance in a world of cloud computing, new announcements highlight gaps in the offerings of certain IT vendors (Dell, IBM, Oracle) and increases the appeal of certain independent strategic assets (Citrix, Red Hat, Juniper).
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