Monday, October 17, 2011

HP's new virtualization servers provide path to cloud

Hewlett-Packard on Monday announced new servers that come pre-configured with Microsoft software to help companies deploy virtualized workloads more quickly.

HP's VirtualSystem for Microsoft includes HP servers and Microsoft's Hyper-V virtualization software, and will help customers to rapidly deploy applications including SharePoint, Exchange Server and SQL Server, said Jeff Carlat, director of industry standard servers and software marketing, enterprise storage, servers and networking.

The virtual workloads, hardware and other resources can be managed using HP's Insight Control and Microsoft System Centers.

The servers provide a path to help customers build private and public clouds, and link the two in a hybrid cloud, he said. VirtualSystem for Microsoft uses the same architecture as the HP CloudSystem, which combines storage, networking and servers to reduce latency when scaling configurations in cloud deployments.

Virtualization isn't optimal for all types of cloud deployment. Service providers such as Facebook, for example, which have to crunch large volumes of very small Web transactions, have opted for hardware-based architectures using thousands of low-power servers.

Some newer applications scale in a different way, but many traditional applications function perfectly well in virtualized environments, said Frances Guida, manager of HP cloud solutions and infrastructure, enterprise servers, storage and networking. Virtualization allows companies to scale their capacity up and down quickly to match changing workloads, he said.

HP and Microsoft are trying to make it easier for customers to move applications to the cloud, Guida said. HP already offers VirtualSystem products built with VMware's virtualization technology.

VirtualSystem for Microsoft will be available in November priced from about US$175,500. It will be offered in two models -- the VS1, for companies that want to host about 750 virtual machines, and the VS2, for companies hosting about 2,500 virtual machines. The prices don't include Microsoft's application licenses.

The VS1 can be configured with up to eight HP ProLiant DL380 G7 servers, 1G-bit and 10G-bit Ethernet connections, and a P4500 LeftHand SAN (storage area network) that scales from 14TB to 57TB. The VS2 can have up to 12 HP ProLiant BL460c G7 servers, multiple network and storage connectivity modules, and P4800 LeftHand SAN that can expand to 84TB.

HP also launched VirtualSystem for Superdome 2, for companies such as financial institutions that use HP's high-uptime Superdome servers. These systems typically run on Intel's Itanium processor and HP's HP-UX operating system.

High-end servers often need high levels of customization, but the factory configuration provides a way to bring newer HP technologies, such as its 3Par storage, into a virtualized system, Carlat said. HP didn't provide pricing for the VirtualSystem for Superdome 2.

Source:http://www.itworld.com/data-centerservers/214245/hps-new-virtualization-servers-provide-path-cloud

IBM's Q3 disappoints, stock drops

IBM's quarterly results failed to impress investors used to a stellar showing from Big Blue, adding to concerns about lackluster corporate IT spending and dragging its stock down more than 3 percent.

The company's earnings beat forecasts and it increased its 2011 earnings-per-share outlook but it faced a high hurdle after recent strong reports from Oracle and Accenture, and analysts focused on slower expansion in key regions and businesses.

Further stoking worries about IT spending, business software maker VMware Inc posted quarterly profit above expectations but warned of uncertainty among some of its corporate customers in Europe.

"We have seen a bit more scrutiny and higher levels of approval required. Particularly with larger deals where they would go for CFO and CEO approval, where in the past we may not have seen those approvals to be necessary," said VMWare Chief Financial Officer Mark Peeking.

IBM, an information technology hardware bellwether with a global clientele, said total services signings -- an indicator of future growth -- climbed to $12.3 billion in the third quarter, in line with expectations.

"The growth rates IBM experienced in each of the regions -- Americas, Europe and Asia -- are all decelerating and the public sector is exhibiting no growth," said Shebly Seyrafi, an analyst at FBN Securities. "I wouldn't say we're falling off a cliff, but there is a slowing in IT spending."

Revenue rose 8 percent to $26.16 billion, marginally softer than the average forecast of $26.26 billion.

Buttressed by recurring revenue that helps keep IBM's results steady in strong and weak economies, its shares have outperformed the market and hit a record high on Friday. They are up about 28 percent this year versus the Standard & Poor's 500 index's 4 percent dip.

On Monday, International Business Machines Corp's stock fell 3.7 percent to $179.70 in extended trade after closing down 2.1 percent on the New York Stock Exchange.

"The company exceeded published expectations, but the underlying expectations were even higher," Annex Research analyst Bob Djurdjevic said. "Investors who have been very bullish on IBM are probably taking some profits now."

RISING CLOUD

U.S. economic concerns and a worsening European financial crisis have hurt consumer demand. Companies such as IBM that sell hardware and software for data centers powering the Internet have remained resilient.

IBM said revenue from cloud computing in the first nine months of this year was twice as much as in full-year 2010.

Adjusted for currency, IBM's revenue from the Americas rose 6 percent in the quarter, with Europe, Africa and the Middle East flat, and Asia up 1 percent.

IBM also derives a major portion of its revenue from government spending and the financial services industry -- both hit hard by widening fiscal deficits and crumbling markets, respectively.

IBM has consistently beaten Wall Street forecasts. In the second quarter, it trounced expectations with signings of new business surging 16 percent. At the time, that stellar performance raised hopes that 2011 would be a good year for overall tech-spending.

On Monday, it raised its full-year diluted earnings forecast to at least $13.35 per share, from its prior estimate of at least $13.25. Analysts had expected $13.32, according to Thomson Reuters I/B/E/S.

IBM reported a third-quarter profit, excluding items, of $3.28 per share, up 15 percent year over year and above expectations of $3.22.

"Whatever IBM could control, they did a great job. But they are not immune to macro conditions. Financial conditions are tough," said Global Equities Research analyst Trip Chowdhry.

"People don't want to cancel projects, but projects are getting delayed. Sales cycles are getting elongated. New projects are getting smaller budgets."

Despite uncertainty in the fourth quarter and 2012, some portfolio managers remained confident in IBM's ability to weather a tougher global environment.

"IBM's business has a degree of resiliency to it. The company has maintenance agreements that generate recurring revenue, giving us more visibility on future results," Wirtz said.

Source:http://www.jordandirections.com/2011101741424/technology/ibm-s-q3-disappoints-stock-drops
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