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HP data center reorg prompts VAR angst

The HP data center reorg involves 9,000 data center layoffs and 6,000 rehires for services and sales positions, which could mean less business opportunities for solution providers.

Systems Channel News Roundup for the week of May 31-June 4, 2010.

HP data center realignment highlights services division

Under a new HP data center realignment, Hewlett-Packard will cut 9,000 employees and hire 6,000 people for global sales and services positions.

That means HP VARs could face more competition for services business. Observers said HP moved to cut costs in its services business as customers no longer want long, open-ended and expensive service engagements, opting instead for smaller, more incremental service deals. HP's services division revenue grew 2% compared to last year, according to

The company said it will invest $1 billion in IT services, but it is also taking a $1 billion write-off to cover severance and other costs related to the restructuring.

HP VARs can resell "units" of HP services as needed.

Oracle adds to desktop virtualization portfolio

Oracle Corp. added the Sun Ray 3 Plus Client and Oracle Virtual Desktop Infrastructure 3.1.1 to its desktop virtualization portfolio.

The Sun Ray 3 Plus Client has several new features that solutions providers should point out to customers, including compliance with Energy Star requirements, support for up to two 30-inch displays with 2560 x 1600 resolution, faster I/O and increased security through the use of fiber optic networking.

With Oracle Virtual Desktop Infrastructure 3.1.1, solutions providers can now access standard server-hosted virtual desktop images from any client device, use Windows 7 as a virtual desktop operating system, get VLAN support for Microsoft Hyper-V and use the Oracle VM VirtualBox host for x86 virtualization tasks.

New VKernel Optimization Pack 1.4 automates reporting

The newly available VKernel Optimization Pack 1.4 includes new reporting capabilities and capacity management features geared toward enterprise customers.

VKernel Optimization Pack 1.4's reporting capabilities can now automatically set up and deliver utilization reports to solutions providers. It can also ensure that more than 2,000 virtual machines in a single VKernel virtual appliance are not overburdened with CPU, memory or storage.

The pack is available as a 30-day trial at the VKernel website.

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