HP has outlined the results of its three-year IT transformation and laid out the company's IT strategy.
This includes data centre and application consolidation, as well as boosting processing power by 250%, to support future growth for 2009 and beyond, the company says.
As a result of this effort, HP has already reduced its IT operating costs by approximately half; provided more reliable information for executives to make better business decisions. It has also established a more simplified and dependable IT infrastructure, providing improved business continuity and supporting future growth.
“HP's IT transformation was not just a technology initiative within the IT organisation, it was a business strategy adopted throughout the company,” said Randy Mott, HP executive VP and CIO. “We're now in a great position to enable future business growth.”
Starting in fiscal year 2009, the transformation is hoped to lower IT costs by more than $1 billion per year from fiscal year 2005 levels.
The transformation focused on five major initiatives: next-generation global data centres, portfolio management, workforce effectiveness, building a world-class technology organisation, and a true enterprise data warehouse. Through aligning its entire global organisation on these five initiatives, HP has reduced complexity and believes it has added significant capability and quality of service.
The benefits to HP as a result of this transformation include: reduced spending on internal IT from 4% of revenue in 2005 to less than 2% in 2009, and the consolidation of 85 internal IT legacy data centres into six next-generation data centres.
It is expected that over 6 000 business applications will be consolidated into 1 500 standardised ones, annual energy consumption in data centres will be reduced by 60%, and the number of servers decreased by 40% while increasing processing power by 250%, the company says.
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