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HP Kills Off Utility Data Center

pacopico writes "HP's much hyped and highly-regarded UDC system has gone the way of the dodo. The Register charts the technology's demise and points to the few other reporters who covered UDC's end. Spent some time at HP checking out UDC and am sad to see it go. Ahead of its time to be sure."

15 of 138 comments (clear)

  1. HP woes... by ndykman · · Score: 4, Insightful

    This is really unfortunate. This technology had real promise, and I hate to see cool ideas that have commerical promise being shelved in favor of...

    Okay, for what. Seriously, HP. What the hell. I worked for you as a summer intern in 1997 at HP Labs. I had a good job there. You had lots of smart people who cared. It seems like you had a future, you had plans. What happened to you?

    Is Carly is what happened? I'm sorry all the good people their have seem to been let go (laid off) or retired (instead in getting laid off). I feel bad that you couldn't stay.

    It seems to me you are hell-bent to take every chance you have and ruin it. You have a lot of riches in talent and idea, and you just seem to toss it away.

    Wake up and smell the air around you. You need everything you have to go toe to toe with IBM. Choice is good, remember that, and stop killing good ideas left and right just, well, because?

    I still have hope. I really do. But I'm worried, because the more successful IT companies we have, the better we all do.

    1. Re:HP woes... by murdocj · · Score: 2, Insightful
      Best that I can tell, she took the very same people that were responsible for COMPAQ's death spiral and put them into position to do exactly the same thing to HP.

      It's weird, same thing happened to my company. We (and a bunch of our competitors) were bought out by a dot bomb that proceeded to loose somewhere in the vicinity of $150 million in 3 years. It was a pretty good trick, given they had bought a bunch of profitable companies.

      Then the whole mess was bought out by another company that was supposed to be a smart, well-run organization... and they left the same people in charge of our division. How the hell can people have any sense at all and do that kind thing?

    2. Re:HP woes... by jcr · · Score: 2, Insightful

      Give it a couple of years.. Agilent will buy the HP name back from the recievers.

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    3. Re:HP woes... by AuMatar · · Score: 5, Insightful

      Working on the inside- the Compaq merger was aa hideous mistake. HP took its first quaterly losses ever as a result of it. The culture has died- forget about the HP way and the rules of the garage- we took Compaq's management, compaq's employee treatment, Compaq's raise and bonus system (we need to hit target numbers that they refuse to show us. Amazing how we never hit them).

      What did we get from it? Well, we became the numbebr 1 PC vendor- for 2 quarters. Dell then overtook us and has held it since. Not that we really got any use of it anyway- PCs are a commodity, we make barely any money from them in good quarters. Servers? We killed the Alpha, and we aren't doing so great in the low end server market. High end Compaq wasn't a comppetitor. Services? Our services division is yet to pull a profit. In fact, most quarters the only division to make a profit is the printer and ink division.

      Basicly we sold the corporate culture down the drain, fucked up the balance sheet, devalued the stock, all for nominal to no gains. Profits are the same as they were pre-merger, on twice the revenue. We're woring twice as hard to run in place. Hewlett saw the mistake she was making and tried to save the company, its too bad she bribed Deutchbank at the last minute to squeak through.

      This is why you don't put buisness and liberal arts majors in charge of an engineering company. They don't understand the buisness. So they turn it into something they do know- they move to compete in low margin commodity and consumer electronics markets like Carly has done.

      RIP HP. You were good while you lasted.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    4. Re:HP woes... by Spoing · · Score: 2, Insightful
      1. This is why you don't put buisness and liberal arts majors in charge of an engineering company. They don't understand the buisness. So they turn it into something they do know- they move to compete in low margin commodity and consumer electronics markets like Carly has done.

      Some of the best coders and tech business people I've ever delt with were liberal arts majors. Grind your axe on another stone.

      --
      A firewall can not protect you from yourself. Turn off what you do not need. Do not use the firewall to do your work.
  2. Improper Marketing by foobsr · · Score: 2, Insightful

    In the end, it was the massive price for a UDC installation that culled "the vision," bucking the age-old adage that customers will buy anything with a fancy enough ribbon.

    Translated: "Marketing was incapaple of addressing potential customers properly, after being reluctant to finance research on the issue".

    CC.

    --
    TaijiQuan (Huang, 5 loosenings)
  3. Could they please stop calling it HP1 by Anonymous Coward · · Score: 5, Insightful
    HP seems to be trying hard to kill everything of substance that they ever had in Carly's attempt to be a low-cost-Dell-clone company.

    No more PA-Risc.
    No more Alpha.
    No more Itanium Workstations
    No more open source (except for lip service)
    No more Bluestone software (based on open source.
    No more HPUX.
    No altavista when they bought CPQ.
    No more Vision NO more Hewlett Packard name
    No more Hewlett or Packard involved.

    Seems to me that last one triggered when it all started falling apart.

    Hewlett and Packard built one of the greatest companies in the history of Silicon Valley; and Carly managed to tank the thing in a couple years trying to pretend she can be a Michael Dell commodity-vendor.

    I wish they'd just change the name to Carly&co to stop trashing the inintials of two of the greatest hheros of silicon valley.

    1. Re:Could they please stop calling it HP1 by jcr · · Score: 3, Insightful

      I agree with most of your post, but why knock them for ditching the Itanic?

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
  4. Another botch-up from HP by a.different.perspect · · Score: 1, Insightful

    I predicted this would happen. Everyone - including myself - believed that UDC had massive potential. It was just never marketed the way it should have been. HP's engineers are top-notch and have developed stellar products, but their execs never put too much faith in their innovation and only catch on when other products from other companies of the same kind become successful. By then, it's too late.

  5. Wake up and smell the coffee by Mr_Silver · · Score: 3, Insightful
    Yes it's a shame it has been killed off but had you read the article you would have seen:

    Hard as it to believe, HP's grand wrapping of the smartest severs, storage, networking and software products on the planet could not find enough buyers.

    So it was good technology, but they couldn't find enough buyers. So it was losing money. What do you propose they do with technology that no-one wants to buy? Keep it running and losing money just because it's "cool"?

    You bitch about the music industry and their outdated business model yet it seems like this technology has an equally flawed one too (that is, no-one wanted to purchase it). Yes I'm being harsh, but unless I get any more facts I'm inclined to believe that Carly killed it off because it was losing more money than it was making.

    Microsoft have enough cash in the bank to allow nearly all of their departments to make money - not everyone else has this luxury.

    --
    Avantslash - View Slashdot cleanly on your mobile phone.
    1. Re:Wake up and smell the coffee by birder · · Score: 4, Insightful

      They couldn't find enough buyers because it didn't do what buyers wanted. They deviated from the design in 2.0 compared to what 1.x promised. The first release had some good stuff that just need a bit more management around. Then in version 2 they went a different direction.

      We listened to them but there was no way we would of spend millions buying into UDC they way it was turning into.

      What it boiled down to is the stopped listening to what customers wanted to began tell them what they needed.

    2. Re:Wake up and smell the coffee by diamondsw · · Score: 2, Insightful

      What it boils down to is the business models are flawed.

      Customers are led to believe costs will be lower in a UDC/ODC. However, think about it - the hosting company has just taken on all of the risk of hardward procurement. To cover the risk, it has to be baked into the costs. Otherwise, what happens if you board a customer who has very low utilization? They don't pay much, and you can't recover the cost of the hardware. Thus costs are higher, and it violates customers' expectations - they dont sign. Furthermore, many software licensing schemes are incompatible with a UDC/ODC - they're based on total size of the host platform, and don't take into account utilization, partitions, etc. That adds cost as well. And then there's a lot of technology to make it all happen, but no amount of good tech will fix such a flawed business model.

      It's too expensive and is marketed horribly. That's why it died. Now it's up to IBM alone to prove this will work...

      --
      I don't know what kind of crack I was on, but I suspect it was decaf.
  6. Re:Typical post-y2k demise by MemoryDragon · · Score: 4, Insightful

    Customer satisfaction in pre Fiorina times definitely was the cornerstone of HPs success. HP always was more expensive than the competition, but you got really what you paid for. Printers, which were expensive, but literally lasted forever. Calculators HP was king there with products which represented the best you could get at that area. Same goes for the workstation, which were top notch quality. A processor line, which rivaled with the best (PA-RISC), the list is endless. They asked for high prices, high prices were paid, because the customers knew, they werent let down by the design and durability as well as the company behind it.

    Well, nowadays, HP rivals with Dell and others by putting out mediocre PCs. There printer division still is the cash cow, but given the circumstances, they will lose the market in the long term to Canon. Their laser printers already are rebranded Canon printers. PA-RISC dead on the altar of the almighty Itanium. The merger as usual basically cost the best heads in engineering on both sides which either were gone or fled because their friends were gone. HP nowadays is a pale shadow of what it used to be.

    Either they go back to their core strengths, reinvent themselves in a totally different field, like IBM did, or they go the way of the dodo. Btw. they are currently trying to make a quick buck by being one of the outsourcing providers. But HP is one of the biggest outsourcers themselves, so why shall customers trust them in this regard? There are others which dont just play middlemen.

  7. Re:Nice company motto by The-Bus · · Score: 2, Insightful

    "I'm too depressed to continue. I only wish our country had the balls to fight treason like this."

    Don't worry, something is being done about it. It's just not coming from the government.

    --

    Small potatoes make the steak look bigger.

  8. Re:To bad they don't just rerelease it as OSS. by fred+fleenblat · · Score: 2, Insightful

    I wish there was a legal requirement that "abandonware" be automatically converted to open source. There's no cost to the company really, just stick a tarball on an ftp site.

    In cases like this, it allows customers to fix and upgrade to meet their own needs and preserves their investment. Over time, this could shift some of the balance in purchasing decisions away from big companies that are seen as stable and supporting their products for the long term over to more bleeding edge risky companies. Some customers demand source escrow in their contracts for their own protection, but I think it's time that this became the default for all contracts and that the source go public.

    Same thing should apply to music and book copyrights. If you can't purchase a copy of an out of print book from a publisher or get a CD of a treasured old recording, you should have the right to just make a copy yourself, since the publisher has effectively waived his interest by ceasing to publish.