HP targets the cloud with new Converged Cloud initiative

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Hewlett-Packard (NYSE: HPQ), which saw a first quarter slump in revenues that prompted CEO Meg Whitman to promise a flattening of revenue decline this year as well as launch a major reorganization, is making more changes, this time to its corporate sales of servers and software.

The company said the move would allow it to jump into the cloud computing market more aggressively. Whitman last month combined the printer and PC group, tweaked the Enterprise business and said that she couldn't promise there wouldn't be job cuts.

The new HP Converged Cloud follows a similar path, merging disparate business units that create and run data centers.

"We've got lots of intellectual property, lots of products and expertise at running things at scale," said Bill Veghte, chief strategy officer and executive vice president of software at HP. "There is a new wave of cloud and mobile computing, and big data, and there is a gap between what businesses need and what information technology is delivering."

HP has been losing market share to Amazon (Nasdaq: AMZN) and IBM.

For more:
- see this New York Times article

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