HP is reportedly getting ready to trade in its more sophisticated Oracle Siebel customer relationship management (CRM) system for a subscription to 35,000 or 40,000 seats worth of Salesforce.com’s simpler high-flying CRM cloud widgetry, a major victory for salesforce.

At least that’s what Global Equities Research analyst Trip Crowdry is telling people citing industry contacts and HP insiders suggest it’s true.

The move is supposed to save HP 40%-50% off what it’s paying Oracle, which is reportedly fit to be tied although it can hardly expect better treatment after weeks of calling HP CEO Léo Apotheker a crook involved in SAP’s heist of five terabytes worth of Oracle software.

A federal jury decided Tuesday that SAP should pay Oracle a record $1.3 billion in damages.

Any move to salesforce is likely to weigh on what’s left of the Oracle-HP relationship.

Apotheker is reportedly supposed to turn up at salesforce.com’s Dreamforce conference in early December. Saleforce is supposed to claim that it’s the “new Oracle, just like Google is the new Microsoft and Microsoft is the new Xerox.”

Another day, another statement out of Oracle meant to embarrass HP’s brand new CEO.

Late Wednesday, three days into the SAP trial, Oracle came out and said, “Hewlett-Packard has refused to accept service of a subpoena requiring Mr. Apotheker to testify about his role in SAP’s illegal conduct. Mr. Apotheker started work for HP on Monday, but it now appears that the HP Board of Directors has decided to keep him away from HP’s headquarters and outside the court’s jurisdiction. We will continue to try to serve him.”

HP might as well have painted a big bull’s eye on Apotheker’s chest because Oracle’s gonna use his failure to show as evidence, circumstantial or otherwise, of his alleged complicity in the illegal downloading of Oracle IP that went for years at SAP’s now shuttered third-party maintenance outfit TomorrowNow.

The trial is supposed to decide how much SAP owes Oracle for poaching its intellectual property. SAP has already admitted it did but doesn’t think it should have to pay the $2.3 billion in damages Oracle is demanding.

Oracle CEO Larry Ellison claimed last week that he could prove Apotheker oversaw the “industrial espionage scheme” and that HP couldn’t afford to let him testify. He said HP would keep him out of the country until the trial is over.

HP maintains that Apotheker knew little of the affair. It claims Oracle only means to harass the man and interfere with his new job.

HP refuses to say where Apotheker is. When he got the job in October he said he would spend weeks, if not months, globe trotting and talking to HP staff, customers and stockholder by way of orientation. We heard from a source that he’s in the Far East.

Oracle can easily make that sound fishy since he’s been on its witness list since before he got the HP job.

In Leo’s physical absence Oracle is supposed to play at least clips of his videotaped deposition for the jury.

According to testimony by former SAP president Shai Agassi Leo was in charge of SAP’s “Safe Passage” program to rustle Oracle’s PeopleSoft, JE Edwards and Siebel customers and migrate them to SAP software using TomorrowNow as the decoy.

An Apotheker e-mail presented to the jury Tuesday said, “We need to inflict some pain on Oracle” by providing cheap TomorrowNow services to Oracle customers as a prelude to migrating them to SAP software.

Ellison was originally supposed to testify Friday, a performance that has now been moved to Monday – and don’t think that’s just the luck of the draw. It’s completely choreographed so Larry gets maximum media exposure. Nobody reads the Saturday papers.

By the way, Larry’s star lawyer David Boies has just flown in from a courtroom in New York to pick up the examination of SAP witnesses Friday and may well lead Larry over the traces.

So how did ousted SAP CEO Léo Apotheker manage to persuade the HP board that he was their man against a field that included EMC’s Pat Gelsinger, Apple’s Tim Cook (before Steve Jobs bought his loyalty back), Juniper Networks’ Kevin Johnson, Cisco’s Inder Sidha and Microsoft’s Stephen Elop (who went to Nokia as CEO instead)?

Well, the tale making the rounds – if you happen to be at the right water cooler – is that somebody on the HP board tipped him off to getting interview lessons from the Boston Consulting Group (BCG).

BCG was aware of the board’s overweening concern for HP’s morale, which their last CEO Mark Hurd supposedly left in rubble and so, properly tutored, Apotheker was full of touchy-feely empathy for the staff, hitting exactly the notes the board wanted to hear, basically casting himself as the People’s CEO who’s going to bring back the old HP culture – which is hysterically funny considering that the internal survey that SAP did shortly before Apotheker was kicked out found that only half of the company’s staff of 50,000 had any confidence in the man, a point that SAP made much of at the time.

That’s why he’s going on a two-month “listening tour” of HP to collect input from the hoi polloi.

It was unclear why Apotheker was so unpopular at SAP. It could have been that he alienated SAP’s users by trying to up their maintenance rates; it could have been that SAP’s Business ByDesign utility entry was botched; or it could have been because he fired 3,000 people – sort of like what Mark Hurd did but on a much smaller scale on a much smaller stage.

Hurd was unpopular because he abolished HP entitlements. Last Friday there was an all-hands meeting at HP with Apotheker. He was asked if he was going to restore the 10% pay cut that Hurd instituted so more staff wouldn’t be fired. Apotheker reportedly palmed the question off on acting CEO Cathie Lesjak, saying, “I don’t know. Let me ask Cathie.” Now she’s the heavy cause she said no.

Plus ça change, plus c’est la même chose.

Gamesmanship hit a new level late Thursday when HP announced that it had hired former SAP CEO Léo Apotheker as its new CEO and tapped former Oracle president and COO Ray Lane as its non-executive chairman, splitting jobs that its former CEO had.

Well, if Oracle can hire ousted HP CEO Mark Hurd with his deep knowledge of all HP’s cherished secrets as president, then, by George, HP can hire the ousted CEO of Oracle’s great enemy SAP and brace him by bringing in Ray Lane, a guy described by one of his former Oracle colleagues as a “big swinging dick son of a bitch,” who’s got a grudge a mile wide against Oracle and Oracle CEO Larry Ellison for dumping him a decade ago.

One can imagine Ellison and Hurd getting a real “pee-in-your-pants-laughing” kick out of this one. Uninspired, HP’s stock immediately headed south after-hours having not yet recovered from the shock of losing Hurd for reasons that are still not clear. It declined 3% to $40.80. It had been at $46.25 before Hurd left.

To be fair, the industry is kinda short on messiahs and, according to Reuters, HP couldn’t entice either the immovable head of IBM software and now systems too Steve Mills or its equally steadfast $95 billion-a-year global sales chief Ginni Rometty to take the job.

Apotheker only ran SAP as its sole CEO for eight months until this past February when the company decided not to renew his contract for reasons it never articulated and he quit. Historically a “two in the box” kind of company, he had shared the job with Henning Kagermann between April of 2008 and May of 2009.

Compared to HP’s $130 billion in revenues SAP’s a paltry $15 billion with none of HP’s mammoth complexity. Having spent more than 20 years at SAP, Apotheker has little to no hardware, systems or services experience. Luckily, HP is soft on the software side so maybe he can make a contribution there.

He’s had the CEO bug for a while, having reportedly gotten the job at CA, a defection SAP averted – when the news was prematurely outed by the press – by offering to make him co-president.

Apotheker as CEO proved an unpopular choice with the SAP rank and file. The company’s financial performance suffered across-the-board and for the first time in its history SAP laid off 3,000 people. He made the mistake of trying to jack up support revenues in the middle of a recession but customers rebelled and SAP was forced to offer lower-priced support. The company also flubbed its SaaS Business ByDesign offering, which was supposed to solve a lot of its problems. When he left SAP co-founder Hasso Plattner, the chairman of the company’s supervisory board, said he himself would ride herd over technology and product development presumably an indication of where the board though Apotheker, a sales guy, screwed up.

HP calls him a “strategic thinker” with global experience and proven operational discipline but observers conclude that Lane, who ran sales and marketing at Oracle, has no financial experience and seems to have had no raging success as a Kleiner Perkins VC, will function as a shadow CEO. Lane is new to HP’s board. Before Oracle, he worked at Booz Allen Hamilton, EDS and IBM

The men start their jobs November 1, the beginning of HP’s fiscal year. HP means to have a conference call with Wall Street first thing Friday morning.

Born in Germany and educated in Israel, Apotheker will be HP’s first European CEO and speaks five languages.

Going outside for its CEO is supposed to raise the odds on HP keeping its internal candidates: PC chief Todd Bradley, enterprise chief Ann Livermore and server, storage and networking chief David Donatelli. We’ll see. Interim CEO Cathie Lesjak will reportedly go back to being just CFO.

HP confirmed Monday morning that it means to buy ArcSight, the 10-year-old anti-hacking house, for $43.50 a share or around $1.5 billion all told, a 24% premium for a company that it reputedly wanted to buy for $800 million a couple of years ago before it went public.

Since the unconfirmed report in the Wall Street Journal Sunday afternoon suggested an auction, the punters bid ArcSight’s stock price up over the $43.50 HP said it’s going to pay, hoping for a repeat of the 3PAR run-up.

The Journal said it heard ArcSight was shopping itself around to a bunch of big technology companies and looking for $42 a share. It was at $28 on August 26 when paper first reported it was for sale and closed Friday at $35.10.

During an early morning conference call Bill Veghte, the ex-Microsoftee now running HP’s software unit, refused to speculate on the chance of another bidder coming forward.

He also wouldn’t comment on whether HP’s overpaying for growth and whether its tight-fisted former CEO Mark Hurd, now gone to Oracle, would have countenanced the ArcSight premium on top of the $2.35 billion it’s paying for 3PAR.

Hurd reportedly didn’t want to pay more than $750 million for 3PAR and passed on trying to outbid Dell when he was still at HP and the price was still at $1.15 billion. HP is also carrying $5 billion in debt and promised to buy back another $10 billion worth of its stock – on top of the $4.9 billion still to be used for that purpose – to make up for the thrashing it’s taken since it ousted Hurd. It has $14.7 billion in the bank although all of that is now theoretically spent.

At least ArcSight, unlike 3PAR, is profitable.

The company, which monitors corporate networks for suspicious activity, earned $28.4 million, up from $9.9 million, on revenue of $181.4 million, up 33%, in its fiscal year ended April 30. HP said it is growing at the rate of 40% a year with double-digit operating margins and has a reportedly thousand customers including HP-style Fortune 100s and 1000s.

HP said it expects the acquisition to close by the end of year and not dilute its earnings.

Veghte said HP would combine ArcSight’s real-time view of security events with its own view of corporate resources.

It will give HP broader visibility into events across IT operations, security and compliance; the ability to detect threats and risks by correlating both activity and state changes in real-time; and a constant feedback loop between build, manage and monitor to ensure that enterprises remain secure.

ArcSight CEO Tom Reilly said HP would be able to create “a new type of security solution.”

ArcSight is supposed to control the internal and external risks associated with cybertheft, cyberfraud, cyberwarfare and cyberespionage.

Last month Intel said it was buying McAfee for $7.7 billion. HP also bought Fortify Software, another security house, last month on undisclosed terms.

Cisco ripped off HP’s epaulets and broke its sword over its knee last Friday.

It’s not going to renew HP’s long-time systems integrator contract when it expires on April 30.

That means HP won’t be a Cisco Certified Channel or Global Service Alliance partner anymore because Cisco Certified Channel or Global Service Alliance partners get proprietary Cisco information like product roadmaps and discounts and that’s kinda silly when HP and Cisco are competing for business.

Cisco sent its senior VP of worldwide partner organization Keith Goodwin out to deliver this message on YouTube.

He said Cisco’s “relationship with HP has evolved from a partner to companies with different and conflicting visions of how to deliver value to companies” and that “for Cisco to lead market transitions… we must align with and invest in partners who share out network-centric vision.”

This pretty pass is the result of Cisco trying to elbow its way into the server business that HP dominates and HP retaliating by launching its ProCurve line, buying 3Com and partnering with Qlogic to push into Cisco’s networking preserve. HP’s data center/cloud pact with Microsoft probably didn’t help anymore than Cisco’s alignment with EMC and VMware.

HP, in response, issued a statement taking the moral high ground and saying that Cisco should rise above the fray. “Most major players compete in one deal and partner in others to best serve clients’ needs. We do not believe it is in the customer’s best interest to take a proprietary stance.”

Goodwin says Cisco is willing to entertain a different kind of arrangement with HP. “We have already reached out to HP to begin the discussion around a new agreement that ensures business continuity for existing customers and better reflects the current state of our relationship.”

According to Ovum “HP needs Cisco more than Cisco needs HP” because HP’s networking portfolio still can’t go one-on-one with Cisco’s widgetry. HP reportedly sells about a billion dollars worth of Cisco gear a year, and its own storage and servers on top of that.

That seems short-term and fixable. The damage to Cisco – well, the Cisco as we know it – could be deeper. What’s it gonna do when IBM, Dell and Sun’s contracts run out?

See Cisco’s positioning for yourself at http://blogs.cisco.com/channels/comments/ciscos_evolving_partner_landscape/.

Claiming to have struck the tightest, most deeply integrated relationship ever seen in the industry – apparently the next best thing to one of them acquiring the other – HP and Microsoft said Wednesday that together they’re going to pour $250 million over the next three years into a new cloud computing venture.

Microsoft CEO Steve Ballmer, talking up their intimacy, made it sound like what comes out the other end will make cloud computing as simple as turning on a light switch. Simplicity is their watchword.

Well this part’s simple. HP apparently gets a contract to supply the boxes for Windows Azure data centers.

Anyway, the soup-to-nuts project encompasses hardware, software and service, joint marketing and all of the companies’ 32,000 resellers on which they intend to lavish 10 times their usual sales and marketing incentives.

They say they’re going to create the “most integrated technology stack” around, everything “from infrastructure to applications,” involving virtualization, management, business applications and Azure. A bigger deal one is evidently supposed to think than the VMware-Cisco-EMC partnership. And everything is supposed to be terribly, terribly self-managed and automated.

The pair is supposed to collaborate on an “engineering roadmap for data management machines; converged, pre-packaged application solutions; comprehensive virtualization offerings; and integrated management tools,” promising customers “optimized performance with push-button simplicity at the lowest possible total cost of ownership.”

Here’s the plan. Microsoft becomes HP’s preferred virtualization partner. There will be “Smart Bundles” for SMBs consisting of HP’s servers, storage and networking along with Microsoft’s Hyper-V and HP’s Insight management software. HP will resell Microsoft’s System Center as part of its widgetry and eventually integrate it with Insight and its business technology optimization solution to manage heterogeneous environments.

Reminiscent of Oracle’s intentions with Sun – and replacing the short-lived Oracle-HP Exadata arrangement – there will be pre-packaged, pre-configured data management and e-mail “appliances” based on SQL Server and Exchange that target data warehousing, BI, OLTP and messaging.

Actually the database thingie already exists. The warehouse widgetry will use Microsoft SQL Server Parallel Data Warehouse software inherited from its acquisition of DatAllegro.

Note that Ballmer and HP CEO Mark Hurd said they’ve been working on the deal since last April, which was when Oracle said it would buy Sun.

HP sells Azure and Azure services. Joint solutions, built on industry standards and managed through a common framework, will be designed so customers can integrate private or public clouds. HP will kick in financing arm and both companies their 11,000-strong professional services for on-premises, outsourced and cloud arrangements.

The marriage is supposed to “transform the way large enterprises deliver services to their customers, and help smaller organizations adopt IT to grow their business.” According to Ballmer, “Microsoft and HP are betting on each other so our customers don’t have to gamble on IT.”

According to Merrill Lynch by next year the cloud could claim $95 billion in corporate spend, ~60% of the total, with consumer-style apps like Google’s producing the difference.

HP, which pre-announced relatively happy results a couple of weeks ago when it said it was buying 3Com, came in exactly on target with earnings of $2.4 billion, or 99 cents a share, up 14%, on revenues of $30.8 billion, down 8.4% year-over-year from $33.6 billion.

And the company reiterated that it should do $29.6 billion to $29.9 billion this quarter and earn 90 to 92 cents a share. Its full-year outlook is for $118 billion-$119 billion and EPS of $4.25-$4.35.

In a statement CEO Mark Hurd, who still finds the economy “challenging” despite signs of recovery and projections of growth next year, said services, aided by HP’s EDS acquisition and so up 8% to $8.9 billion, drove the record profits but Hurd-style cost cutting had an awful lot to do with it too.

He expects to outperform the market because of HP’s scale and range of offerings. But then he also expects to make further cuts on the services side already down 19,000 jobs while still hiring on the sales side.

Although services increased 8% to $8.9 billion in Q4 all of HP’s units were off big time.

PCs were down 12% to $9.9 billion despite an 8% increase in shipments; printers were down 15% to $6.5 billion; software was off 16% to $967 million; and servers and storage were down 17% to $4.2 billion for total annual revenues of $114.6 billion, down 3% year-over-year.

HP, like everybody else, has been having its biggest problems in EMEA, Europe actually, where Q4 revenues were off 17% to $11.7 billion. The Americas were only off 3% to $13.6 billion and Asia was down a merely 1% to $5.4 billion. Hurd said European uncertainties were holding HP back from tickling its 2010 projections more. Europe’s performance, he said, wasn’t consistent enough to call a bottom there. Things are too spotty.

HP revenues were up ~20% in China; the other BRIC countries were down 4%. The 3Com acquisition is expected to burnish HP’s revenues out of China. HP is currently getting 40% of revenues from the US and China.

HP’s printer gold mine, which has been looking a bit tarnished the last few quarters, underperformed for want of goods in Q4. It was up 1.4% last quarter on the earnings side and experienced a 20% drop in shipments but Hurd is expecting double-digit growth this quarter even if inventory hasn’t quite caught up yet.

HP claims to be tops in the US enterprise PC market, Dell’s sweet spot, with double-digit year-over-year share gains despite the absence of revival.

The company has boosted its share buy-back budget to a hefty $12 billion, up 3x.

HP Wednesday took the wraps off the first new server family it’s created since the BladeSystem C-class was invented and ran away with the market.

The line is call ExSO, short for Extreme Scale-Out, and it’s purpose-built for global low-margin/maximum transaction volume cloud, Web 2.0 and HPC sites looking for a minimum of 1,000 nodes. It says 10,000-20,000 nodes would be more the norm.

Your basic YouTube, Yahoo and Snapfish, or for that matter Tata and Audi. Operations that need to make every dollar, watts and square foot count, suggesting to HP that there should be a performance per watt/dollar/square foot measurement.

HP claims the ExSO can deliver a “new magnitude of cost and resource savings,” because of a new lightweight, super-efficient modular systems architecture that it touts as the “most significant design innovation since the blade.”

It’s run the numbers and calculates that the builder of a 100,000-square-foot data center – a piece of turf that can house 88,000 nodes – can pare $152.8 million off its capex spend – budget enough for another 140,000 nodes – and another $13.7 million off its energy bill using its widgetry – capacity enough for another 115,000 nodes.

It also claims it can “dramatically” accelerate time-to-market on a massive scale in part because of the rapid installation of its three swappable “compute trays.”

The basis of the ExSO portfolio is a newfangled x86 ProLiant SL server family whose “skinless” system architecture replaces the familiar chassis and rack form factors with a lightweight rail and tray design so that a data center on the second floor of a historic building in the middle of London won’t come crashing through the ceiling.

HP exec John Gromala claims the weight of classic systems is frustrating the scale-out designs of a lot of companies. They require stronger floor support and add to the overall construction bill.

HP calculates that ExSO will save that hypothetical 100,000-square-foot data center builder 838.5 tons of server hardware, the equivalent of 4.3 747 jets.

The 31% lighter weight boxes not only cut shipping costs they also take up less space and cut acquisition costs by, say, 10% and power draw by 28%, while doubling compute density, HP says.

The design’s power efficiency is partially due to the fact that these newfangled 2U trays aren’t solid metal; they’re pierced with diamond-shaped holes that contribute to the air flow, saving an estimated $4.1 million a year.

HP says that overall the system uses 54K less megawatts a year, conserving enough energy to power 4,600 US households for a year.

The new architecture can house 672 processor cores and 10TB of capacity per 42U rack. Storage and compute components can be mixed and matched.

HP says the Datacenter Environmental Edge widgetry that goes along with this stuff can visually map real-time environmental variables so customers can quickly identify inefficiencies, resulting in an additional energy cost savings of up to $2.4 million a year and an ROI in 12 months.

Environmental Edge, whose price starts at $8-$10 a square foot, puts wireless sensors all over the data center to monitor temperature, humidity, air pressure and power utilization. The user’s root cause analysis eliminates excess operating costs.

The SL line consists of an industry standard chassis designed to leverage shared infrastructure like fans, power and the physical enclosure for SL servers.

There are also three G6 servers: the SL2x170z G6 with two servers in each 1U tray for high-performance computing and web front-end applications; the SL160z G6 with 18 dual in-line DIMM slots for added memory and up to two PCI slots for large memory apps, and the SL170z G6 with up to six large form-factor SATA or SAS drives for web search and database applications.

These SL6000s will be available next month at prices dependent on configuration and volume.

© 2012 LinuxGram Suffusion theme by Sayontan Sinha