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  • HP Launches New SMB Storage Offerings, Cuts Staff


    Hewlett-Packard is to introduce several new storage, virtualization, PC, printing and services offerings in an effort to capture a larger share of the Small and Midsize Business (SMB) market.

    The move comes as the company begins consultations on cutting nearly six thousand European jobs, including 850 in the UK and Germany.

    Many of these are at its plant in Erskine, Renfrewshire, because production of servers and storage devices is moving to the Czech Republic.

    HP had warned that more job cuts were coming when it announced second quarter results recently. The company made profits of USD $1.72bn on sales of USD $27.4bn in the three months ended April.

    The new offerings announced this week are part of the Hewlett-Packard Total Care initiative for SMBs, aimed at providing a full range of products, services, tools, training, financing and recycling.

    On the storage side, HP unveiled a new SMB line of appliances and expanded its existing MSA family.

    This includes the StorageWorks X1000 family of appliances, which brings together both file storage and application-based storage.

    The X1000 line replaces HP’s entry-level All-in-One storage appliances. It is based on the vendor’s latest-generation ProLiant G6 server platform, and includes Microsoft’s new Windows Storage Server 2008 Standard x64 Edition operating system.

    Another newcomer is the StorageWorks X3000, a gateway appliance that connects to other storage capacity on the back end to add iSCSI and file services capabilities to existing storage arrays.

    HP also unveiled two new models in its MSA 2000 family of storage arrays. The StorageWorks 2000i includes an iSCSI interface, and the StorageWorks 2000sa includes a SAS interface.

    HP also is helping smaller businesses with new virtualization bundles that include both server and storage technology.

    The bundles include a combination of ProLiant servers, LeftHand software for building virtual storage appliances, VMware software for building virtual servers, ProCurve switches and HP’s Insight management software.

  • HP and RIM Announce Strategic Alliance to Mobilize Business on BlackBerry


    RIM and HP are partnering together to offer Blackberry business users some features which they say will allow mobile workers to increase their productivity levels.

    Among the first applications and services for the smartphones is printing service that enables users to easily print to the nearest printer.

    Called CloudPrint for BlackBerry, it will allow users to store and print documents, photos and web pages while traveling using the smartphone.

    The service is printer-agnostic and driverless and requires simple Internet access.

    Another offering will allow the management of companies’ BlackBerry smartphone deployments to be outsourced.

    HP and RIM plan to design and launch other offerings targeted at the growing number of global mobile employees.

  • Storage Market Slows, Modest Growth Forecast


    Well, it was only a matter of time. The data storage market has slowed down – and much more than anticipated, writes Samantha Sai for storage.biz-news.

    IDC revealed last week that global external disk storage systems’ factory revenues dropped by a half per cent in the fourth quarter.
    This is the first quarterly drop for data storage in more than 5 years.

    According to IDC, EMC, HP, Dell and Hitachi did grow a little in the last quarter, as expected.

    However, IBM, NetApp and Sun Microsystems all posted year-over-year sales declines.

    In the 4th quarter, external system revenues dropped slightly to USD $5.3 billion, while the total disk storage system market dropped 5.9 per cent to USD $7.3 billion chiefly due to limitations in server system sales.

    The other big decline was seen in the total disc storage system capacity, which peaked at 2,460 petabytes, a growth of only 27.3 per cent, but this was down by 50 per cent compared to the growth rate in the past.

    Natalya Yezkhova, IDC research manager for storage systems, said: "Because of the global economic crisis, the last quarter of 2008 was tough for the disk storage systems market, resulting in a market decline from the same quarter last year."

    She said that high-end storage sales were upset by a chill in the end-user expenditures and longer acquisition cycles.

    But some low-end and midrange storage sectors have continued to sale well, "as end users broadened their search for storage solutions in these lower-cost segments to satisfy their increasing storage needs while optimizing investments in storage infrastructure."

    EMC continues to hold the leadership with its external systems market share lead of nearly 23.3 per cent of revenue in the fourth quarter, followed by IBM and HP, with 15.7 per cent and 13 per cent respectively.

    Dell did not fare well and ended the quarter in the fourth position with a 9.3 per cent share.

    Hitachi and NetApp followed with 7 per cent growth, while Sun had 5.2 per cent.

    In the Open SAN market, which only grew 2.2 per cent, EMC was again in the lead with 24.2 per cent of the market.

    IBM followed next with 16.5 per cent.

    The NAS market has grown steadily and recorded a 8.6 per cent rise.

    Again, EMC led the pack with 43.8 per cent, followed by NetApp at 24.1 per cent.

    The sum network disk storage market (NAS combined with Open SAN) grew a modest 3.6 pe cent to USD $4.1 billion in revenues.

    EMC again claimed a 28.6 per cent revenue share, followed by IBM at 14.5 per cent.

    So what are the expectations for the rest of 2009?

    Enterprise Strategy Group and IDC both speculate a modest growth of 2-3 per cent for both the data storage industry overall IT spending.

    In an industry, which has always seen green, adjustment to single digit profits may not sit well for many people.

  • EMC Being Investigated by the Feds


    The Federal government has just announced in a statement that Data Storage giant, EMC is being investigated over its pricing and improper contract practices.

    EMC revealed in its annual report with the SEC several days ago that the US justice Department had filed a lawsuit against the company, writes Samantha Sai for storage-biz.news.

    According to the Justice Department press release, the lawsuit accuses EMC of failing to disclose its commercial pricing practices during negotiation of its General Services Administration (GSA) contracts.

    It also says EMC provided improper payments and other things of value to Systems Integrators and other Alliance Partners on contracts with government agencies.

    The lawsuit alleges that EMC tendered false claims for hardware and services on “numerous government contracts from the late 90s to the present”.

    It is believed that the lawsuit is based on insider information as the suit was filed in US District Court in Little Rock, Ark under the Whistleblower provisions of the False Claims Act.

    Among other allegations in the lawsuit are that EMC, "made payments of money and other things of value (alliance benefits) to a number of systems integration consultants and other alliance partners with whom it had alliance relationships".

    The Justice Department further states "that these alliance relationships and the resulting alliance benefits paid by EMC amount to kickbacks and undisclosed conflict of interest relationships".

    The government press release also declares that EMC has been charged with making false statements to the General Accounting Service about its profit-making pricing customs to collect better proceeds on contracts, "thereby overcharging federal agencies purchasing EMC products and services".

    The report filed by EMC to the SEC mentions that the Justice Department is scrutinizing the company’s fee planning with systems integrators and other associates in federal government dealings.

    It is also looking at the company’s "compliance with the terms and conditions of certain agreements pursuant to which we sold products and services to the federal government, including potential violations of the False Claims Act".

    The investigation partly covers a previous audit by the GSA "concerning our recordkeeping and pricing practices under a schedule agreement we entered into with GSA in November 1999, which, following several extensions, expired in June 2007".

    To date, EMC says it has worked together with the inquiry and assessment and engaged in discussions aimed at resolving this matter without any admission or finding of liability on the part of EMC.

    "We believe that we have meritorious factual and legal defenses to the allegations raised and, if the matter is not resolved and proceeds to litigation, we intend to defend vigorously," the company said.

    "If the matter proceeds to litigation, possible sanctions include an award of damages, including treble damages, fines, penalties and other sanctions, including suspension or debarment from sales to the federal government."

    To keep things in perspective, EMC is not the first IT Corporation to face such allegations. Just a year ago IBM did clear up similar charges with a $ 3 million fine. Other companies that have gone through the same process include Accenture, HP and Sun Microsystems.

    StorageIO Group founder and senior analyst Greg Schulz speculates if the new Administration is just getting started.

    "If that’s the case, one has to wonder who’s next, and how big the boiler will be when the government finally gets around to the really big fish," he said.