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HP services take it on the chin

Sometimes you wonder if Hewlett-Packard can buy itself a break. Checkout this Wall Street Journal  headline: IBM shows HP how to serve clients.


HP services fared poorly in the fourth quarter compared to IBM and Accenture, according to this “Heard on the Street” entry.  Revenue for HP’s services arm (including what’s left of the old  EDS) fell 2% year-over-year for that period. Salt in the wound, IBM’s services revenue and that of Accenture both rose 12% in that same period.

HP partners might laud this if they think  they can make up for HP’s own services deficit.  But the problem is that HP gambled big on serivces when it bought EDS three years ago for nearly $13 billion. Since then, execution has lagged. It also seems to indicate that the cuts and tweaking HP initiated last June to get itself down to fighting weight haven’t done the trick.

This tidbit also makes one wonder whether Oracle’s stated plan to leave services to big partners is a risk or a plus for that software giant. Oracle does field a consulting arm but it is minute compared to the IBM and HP services groups.

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After the NSA PRISM news, documentations shows that Public Cloud servers such as Office 365 have backdoor access. No Enterprise would want to put Emails and Data in Office 365 servers with backdoor access.
Andy is trying to sell this Office 365 so bad, but he forgot about NSA PRISM has caused some trouble for the sale :-)
The article was written before the recent events and published after.
i would agree with the author regarding the benefits of Off-site cloud solutions and how effectively they reduce the cost for small, medium and large organisations. But the author completely ignored the NSA PRISM incident. Public cloud offer backdoor access to NSA and this is very damaging for the cloud industry. can you imagine Intel storing the blue print of its new processor in a public cloud, and NSA having access to it.
As already pointed out the article was written BEFORE the prism / NSA incident and published AFTER - therefore at the time there was nothing to ignore as the information was not in the public domain. If you have a gripe take it up with the site editors.