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HP Joins Foxconn for Cloud Servers

By Sean Michael Kerner (Send Email)
Posted May 1, 2014


HP is partnering with Foxconn in a new joint venture to build cloud optimized server platforms.

The plan is for the new products to provide improved service, support and total costHP Itanium of ownership to cloud service providers. The new servers will also be complementary to the existing HP server portfolio, including the high-density Moonshot servers.

"With the relentless demands for compute capabilities, customers and partners are rapidly moving to a new style of IT that requires focused, scalable and high-volume system designs,” said Meg Whitman, president and chief executive officer, HP in a statement.

"This partnership reflects business model innovation in our server business, where the high-volume design and manufacturing expertise of Foxconn, combined with the compute and service leadership of HP, will enable us to deliver a game-changing offering in infrastructure economics," Whitman continued.

Terry Gou, founder and chairman, Foxconn, said in a statement that his company is "…embracing this new opportunity to change the industry, capture growth in this emerging market, and deliver end-to-end value as we expand our global leadership in design and manufacturing."

HP and Foxconn are not strangers. An HP spokesperson told ServerWatch that HP and Foxconn have shared a global relationship for the last two decades, and this new joint venture initiative is an extension of that partnership.

The Logic Behind the HP and Foxconn Joint Venture

In terms of why HP formed a joint venture with Foxconn instead of just using them as a contract manufacturer, there are a few reasons.

"We created a joint venture agreement to bring together the complementary competencies of both firms," the spokesperson said. "We have brought together Foxconn’s ability to deliver superior value through the supply chain, with HP’s industry compute leadership and recognized service and support, to deliver a game changing service provider product line."

While HP has lofty ambitions for its joint venture cloud initiative with Foxconn, actual details on what the effort will produce are sparse at the moment. HP's spokesperson noted that the company is not announcing specific product details, pricing or availability at this time.


Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist.

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