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HP to consolidate its data centers

Restructuring move is expected to save HP $1 billion
By Shelley Solheim, IDG News Service
May 17, 2006		  

In a move expected to cut IT spending by $1 billion, Hewlett-Packard is consolidating its 85 data centers into six, the company said Wednesday.

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The move is part of a massive restructuring at HP, led by Chief Executive Officer and President Mark Hurd, that involves major consolidation of the company's data centers worldwide and thousands of layoffs. HP has cut 8,100 jobs so far, which is a little more than half the total number expected.

HP will house its data centers in Atlanta, Houston and Austin, Texas. Each of the three locations will host two separate physical sites within 15 miles (24 kilometers) of each other that can be managed centrally, the company said.

HP's services arm will still operate 70 data centers in 23 countries for its external customers.





 

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