HP Offers Financing Support to IT Service Providers Hosting HP Infrastructure

Recognizing that a big percentage of IT is being delivered by service providers, Hewlett-Packard (HPQ) wants to put more skin that game. For the first time HP is allowing service providers of all types to take delivery of HP infrastructure but only pay for it when it is actually turned on. HP is making this possible via an array of service provider-ready offerings announced today.

Derek Howard, service provider marketing manager for HP, said the company is trying to provide financial incentives that will encourage service providers to standardize on HP infrastructure as opposed to integrating a hodgepodge of servers and networks on their own. It’s part of a major emphasis that HP is now placing on IT service providers.

What’s included in HP Service Provider Ready

The HP Service Provider Ready offer is built on a foundation that includes Cloudline servers that HP built with Foxconn and open networking switches the company recently unveiled that are built by Accton Technology Corp. and run a distribution of Linux developed by Cumulus Networks.

In both instances HP is providing support for server and networking components that can be packaged with HP storage in modular sets of building blocks that make it simpler for service providers to scale out their IT operations as needed.

Build it yourself has drawbacks

As a general rule service providers more often than not have access to more engineering talent than financial capital. As a result, the default business setting for most service providers is acquire the most inexpensive equipment they need and then do all the custom integration required themselves. That approach may save money on the cost of acquiring equipment, but over the long haul it tends to lead to high total cost of ownership.

Financial support for building an HP standard data center

Howard notes that an even bigger challenge is that many service providers are running equipment that becomes obsolete for them a lot faster than it would for a traditional enterprise IT organization. In fact, a service provider running IT infrastructure that is only one or two generations behind may be at a competitive disadvantage compared to a better funded rival. A pay-as-go approach to financing IT essentially takes capital out the equation, thereby leveling the service provider field.

Naturally, not every MSP may have the same IT infrastructure requirements as, for example, a cloud service provider. But the one thing every service provider can be certain of is that it’s not so much the size of IT service provider in the fight that matters, but rather the size of the fight in the service provider. Still, just in case it’s nice to know that when push comes to shove it is always good for service providers of all sizes to have as many infrastructure options open as possible.