HP to Automate Data Centers, letting Go of Thousands

HP will spend $1 billion to automate much of its data center technology, resulting in the elimination of 9,000 jobs over the next few years, according to their Press Release that went out yesterday.  The company said the move will provide new offerings and improved service delivery to clients of its Enterprise Services business — launched last year following its $13.9 billion acquisition of EDS.

The unit is based in Texas, but has major operations in our backyard, Herndon. HP did not disclose the number of expected cuts by location.

This is not a good News for the tech sector. Certainly not a good News for the Washingtonians.

The company plans to consolidate the unit’s commercial data centers, management platforms, networks, tools and applications. Once completed, the move is expected to save HP approximately $1 billion a year.

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About Elias Shams
I have been a serial entrepreneur in telecom and social media space for past 12 years or so. I hold a M.S. degree in Telecommunication Engineering from the George Washington University and a B.S. degree in Electrical Engineering from the University of Maryland. I’ve lived and worked in many countries and cities including London England, Tehran Iran, Bonn Germany, Paris France, Alicante Spain, Delhi India, and my favorite of all Washington, DC of great US of A. Two of the greatest Washington, DC based companies I worked for and very proud of are Yurie Systems which was sold to Lucent in 1998 for $1.23 B and telezoo.com that I founded in 1999. I am currently the founder and awesomizer @ awesomize.me

12 Responses to HP to Automate Data Centers, letting Go of Thousands

  1. Bruce Wodka says:

    I don’t see how this is a good thing…
    So HP products are going to be cheaper or can I expect more sales people spamming and calling?

  2. And people ask me why i want to get out of IT.

  3. Gary Redshaw says:

    HP blows… to describe them in 1 word “out of touch”
    I hope they don’t send the HP police after me.

  4. Gary,

    Actually “out of touch” is 3 words and well for an organization that is so out of touch we grew our profits and aquired new business in a time that most in the industry were contracting operations and taking hits on profit. I think it may be you who are in 3 words “out of touch”

    No one likes layoffs me included but ask the Auto industry what the cost of doing things the same old ways is…

  5. You can’t blame HP for wanting to save money and use more advanced technology. Though it does suck for those laid off employees – at least in the short term.

    Long term it might be a good thing. Both times the economy has gone down in the last decade, after the WTC, and then recently, the first to go were tech workers.

    You shouldn’t be attached to your job or anything else. Enjoy it if you want while its there, completely let go when its not.

    Switching to a more sustainable field is probably a good idea. Medicine, Sustainable building methods such as “earthship” style homes, solar, micro hydro, wind power, Ham Radio or making and fixing everyday items, things that always are needed no matter the situation. After the tsunami comes, it will pay off.

  6. Bruce Wodka says:

    I hope more bitter people get out of this business. More for me. Most people don’t care about people anymore. Well…care less. I’ll be in my bunker braiding cat5 wires into a scuba suit if you need me.

  7. Gary Redshaw says:

    Well Vern, I guess you got me on that one. Sounds like you want to battle over my cute remark. OK, why don’t you post your companies R&D budget numbers for say the last 3 years – Vern how are you guys doing with R&D and how many patents are you cranking out in comparrison to your size .. ooops it sounds like all that good stuff want into mergers and aquisitions .. ooops and profits yes ok now I think we can get something out of your comment (hurry turn the lights out in the data centers). Now (and this is the last I will say about this because more HP police will probably get me). I dropped reselling HP products 4 years ago when they started selling their servers cheaper on the web than to us resellers – now that’s a strong channel profile kids – you know when many of us stopped reselling their stuff they said they were sorry.. waited a few months and then did it again. oh yeah and here is the latest correspondence from HP (remember we quit them 4 years ago), and btw I have never been asked by any of my other vendors (IBM, Cisco, Microsoft etc..) for money to continue selling their products ( which = grew our profits and aquired new business in a time that most in the industry were contracting operations and taking hits on profit ). This from HP (I had to laugh).
    HP takes legal and regulatory compliance very seriously and is working with its partner community to ensure that all HP channel partners understand and adhere to these standards. To support this goal, HP is requiring all of its channel partners to participate in mandatory compliance training as a part of their contract renewal process. All HP partners must complete the Legal and Regulatory Compliance Program. You are receiving this message because your company has not completed the Legal and Regulatory Compliance Program. The originally communicated deadline has been extended to March 31, 2010. Please note that if you do not complete this program by the March 31, 2010 deadline, your contract with HP will be terminated. Please act now to avoid product and benefit disruption.
    Yeah, gotta love these guys.. You know we dropped HP and never looked back but they keep those cards and letters coming in..
    Guess what Vern – you’re not the only game in town anymore.. with your cuts to R&D and serious channel issues.. I will repeat – Out of Touch.
    Sorry folks didn’t mean for this to turn into an HP discussion, Vern.. you had to pick the Auto industry as an example (funny). – Me Outy.

  8. With the advent of clod computing this was bond to happen. There is going to be less and less need for hardware people. I was thinking do you realty need the systems here in the US. With the web you can put a system anywhere. All you need is cheep power and land, with a secure location. Just a thought.

  9. This is a throwback from outdated SLA wording. All of these automated data centres have had dedicated support staff. Now with the cloud and global hosting this is redundant.

    If the ‘remote support function’ is simply centralized to two or three suitable locations, not specifically near any of the main data centres, then substantial savings can be made.

    These support staff have often been required to live and work at locations with (at best) sub-optimal quality of life. This could involve them all moving to 100km from holiday locations. Would you be willing to move your family to Aspen CO, Sarasota FL, Myrtle Beach SC, or Albuquerque NM?

  10. Bruce Wodka says:

    Nothing says “secure” like having your data center in a third world country…

  11. Nothing says “Which/whose privacy legislation applies?” like having your data ‘somewhere in the cloud’ ..

  12. Bruce Wodka says:


    Good bad point.

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