HP flexes its cloud muscle with pay-per-use networking program
Hewlett-Packard (NYSE: HPQ) is rolling out a pay-per-use networking program that enables enterprises to deploy local area networks (LANs) and other services while only paying for the technology they use.
HP's FlexNetwork Utility Advantage Program enables telecom service providers to offer enterprises the ability to upgrade their networks to support cloud, mobility and rich media without having to invest in new equipment.
According to HP research, enterprises spend more than 70 percent of their IT budget keeping the lights on, which means less than 30 percent of the budget is available for innovation. Yet they need to invest in network upgrades to support new technologies.
The open standards-based HP FlexNetwork architecture uses software-defined networking (SDN) to enable telecom service providers to offer enterprises a standard, repackaged networking product, including hardware and software. Enterprises contract with the provider for the network capacity they need on a pay-per-use basis.
One of the first telecom providers to offer the program is Swisscom, which is providing the service at six Swiss francs per Gigabit Ethernet port per month, according to a report by TechWeek Europe.
"Our customers want to focus on running their business rather than operating networks for employee access to applications like voice and videoconferencing," Oliver Spring, head of product management at Swisscom, was quoted by TechWeek Europe as saying.
The program will be able to deliver a unified wired and wireless LAN offering for cloud services or applications on a pay-per-use model. HP plans to roll out virtual LAN services next year, according to TechWeek Europe.
"We have seen increased enterprise adoption of cloud-managed pay-per-use wireless local area network offerings. We advise customers to deploy integrated wired and wireless networks with a single management application to deliver consistent services and simplify operations," advised Tim Zimmerman, vice president at market research firm Gartner.